How It Works
- Prevention of Premium Increase: Normally, if you’re at fault in an accident, your insurance premiums may increase. With accident forgiveness, your rates stay the same.
- First At-Fault Accident: This feature generally applies to your first at-fault accident only.
- Policy Eligibility: Not all policies include accident forgiveness. It may be offered as an add-on or a benefit for long-term customers.
Benefits of Accident Forgiveness
- Financial Stability: Protects against sudden increases in insurance costs.
- Stress Reduction: Reduces the worry associated with potential rate hikes after an accident.
- Reward for Safe Driving: Often offered as a reward for a good driving record.
Without the protection of accident forgiveness, the impact on your insurance rates after an accident can differ. Based on nationwide data from Progressive, a single at-fault accident can lead to an average increase in premiums of as much as 28%.
Considerations Before Opting In
- Availability: It’s not available in all states or with all insurers.
- Cost: Some insurers charge extra for this feature.
- Eligibility Criteria: Insurers often have specific requirements for eligibility, like a clean driving record for a certain number of years.
Is It Right for You?
- Driving Record: If you have a history of safe driving, this feature can be beneficial.
- Cost-Benefit Analysis: Weigh the additional cost against the potential rate hikes in case of an accident.
- Insurance Comparison: Compare with other insurance plans to find the best fit for your needs.
Accident forgiveness can be a valuable feature for drivers looking to protect themselves from rate increases following their first at-fault accident. However, it’s important to consider the eligibility criteria, additional costs, and your own driving history before adding it to your policy.
Q: Does accident forgiveness apply to all types of accidents?
A: Generally, it applies to your first at-fault accident, but terms can vary between insurers.
Q: Can accident forgiveness be lost?
A: Yes, if you’re involved in subsequent at-fault accidents, the benefit usually applies only to the first one.