You’ve probably seen TV commercials from insurance companies advertising “accident forgiveness.” Your agent may have even called you to ask if you want to add this policy upgrade. Accident forgiveness policies are certainly advantageous and could save you a small fortune if you are involved in a qualifying collision. However, it is important that you know the limitations of these policies.
If you’re looking for affordable accident forgiveness insurance, click here to view the results of our quote comparison study. Read on to learn the answers to five FAQs about accident forgiveness coverage:
1. Does Every Car Insurance Company Offer Accident Forgiveness Insurance?
No. Insurance companies are not required to offer accident forgiveness insurance, but most of the nation’s largest carriers do offer some form of it. Contact your insurance company to find out if accident forgiveness is an option under your current plan.
2. Do You Qualify for Accident Forgiveness Insurance Automatically?
No. If you have several car accidents, speeding tickets, or other moving violations on your record, your insurance company may decide not to offer you accident forgiveness. However, if your driving record remains clear for a year or more, you may be able to reapply for accident forgiveness, depending on your company’s policies.
Eligibility may also depend on how long you have had insurance through your current provider. Most insurance companies prefer to reward loyal customers with perks like accident forgiveness.
3. How Much Does Accident Forgiveness Insurance Cost?
The cost of accident forgiveness insurance varies from one company to the next. Some providers include accident forgiveness in standard plans while others tack it on as an additional purchase. Some providers charge a percentage of your premium for accident forgiveness whereas others add it on with a flat fee.
Most providers don’t charge more than an additional $100 per year for this coverage. Some insurance companies offer discounts to policyholders who have clean driving records or who have been loyal customers.
4. How Do Different Accident Forgiveness Insurance Programs Compare?
Just as the cost of accident forgiveness varies from one carrier to the next, so too do the specific terms of the policy. Depending on the language of your policy, some types of collisions may not qualify. And your insurance company may still drop you if you are involved in a collision, even if you have accident forgiveness coverage.
5. Who Qualifies for Accident Forgiveness Insurance?
The most important qualifier for accident forgiveness insurance is your driving record. If you’ve maintained a clean record for several consecutive years, you should qualify for accident forgiveness; however, if you’ve been in an accident within the past year, you probably will not qualify and will have to reapply next year.
Applying for accident forgiveness insurance can give you peace of mind, especially if you have young or teen drivers on your plan. If you have any insights to add about this policy upgrade, feel free to share them in a comment below.