We assume there is a chance that we can have accidents even when we are careful. That is why we buy car insurance. How about buying premium protection from accidents? Wouldn’t it be nice if the next at fault accident you have is forgiven and does not affect your rates? This way you can protect the low rates you earned by being a good driver for so longs.
What Accident Forgiveness Offers?
Accident forgiveness is additional coverage you can buy if you qualify. Most companies offer this feature in most states. Once you buy the cover your premium is not increased after the first at fault accident you cause. Generally it is offered on the one forgiven accident per policy basis. Some companies may restrict it to the main policyholder while others allow this to be applicable to all the drivers in the policy. But only one at fault accident can be forgiven for each policy.
An Accident may be forgiven but is not forgotten. It will go on your records but companies will not push up premiums for it. So, when you are looking to switch insurers following one forgiven accident you will have to mention that you had an accident when getting quotes from other insurers. This could make alternative quotes more expensive than you renewal terms. It is a reward for long standing customers. But looking at the above example companies may be benefiting from it as well since their rates will be lower than competitors for about three years. Simply because they do not count the accident you just had while competitors will have to.
Who Qualifies for Accident Forgiveness?
Most companies look for clean driving license and history for about four to five years before you are eligible to buy the coverage. Usually, you have to be policyholder of one company in that time. So, in fact you need not to have claims and be with the same company. Occasionally new company that you switch may offer this facility just to get the business over with them. You will need to discuss this before buying the policy and ask them to carry your accident forgiveness over. Some companies may send you an invitation to buy the cover with your renewal. If not, you can talk to them about the qualifications and price.
How Much Accident Forgiveness Coverage Costs?
This totally depends on your insurer. Some companies may use this to sweeten the deal or reward the long standing policyholders. They will not be charging much for this. On the other hand, there are companies that use this facility to make more money from an existing good customer. A kind of up sale technique many companies utilize to make more money.
Is It Worth Paying Money to Keep Premiums from Rising?
This depends on how you see your chances of causing an accident. If you have not had an accident for the last fifteen years and you do not expect one anytime soon you may keep the money in your pocket. People who are living in quieter surroundings may be confident that they are not likely to need this coverage. Also, those people can still find affordable premiums elsewhere if their current insurer increases the rates.
However, if you are living in a city center your chances of having at fault accidents are greater. Furthermore, premiums increases will be greater as well in high risk zip codes. And of course you need to look at the costs as well. If the amount quoted is reasonable you can added. Otherwise you will need to think about it. It may be only $100 per term but you will need to keep paying it every year to keep the coverage in place.