This post contains the lessons learned from the story of my husband’s car accident.
First, we’ll talk about taking a driving class to place points on your record. Next, we talk about the different types of insurance coverage for the car and the coverage when it is the fault in an accident.
In this post, we will talk about car insurance accident forgiveness, what it is, how it may be eligible to have it, and what auto insurers offer it. Also, before reaching this point, it is also beneficial to know what to do when you have an accident, before leaving the scene to get the best result with the insurance companies.
How does accident forgiveness work?
There are all kinds of expenses that accumulate when you have a car accident.
First, you will usually receive a traffic citation if you were at fault. If the repairs are long enough for you to have to claim insurance, you will have to pay an insurance deductible. The citation may increase the points on your record, which could increase your auto insurance premiums. And to top it off, your insurance premiums could increase due to the claim.
The last one is where the accident forgiveness comes into play.
A number of insurance companies offer “accident forgiveness” as an advantage to register as a customer of them. There is no standard definition in the auto insurance industry for accident forgiveness – it can vary from one company to another. The basic idea is that the auto insurance provider will “forgive” your accident without increasing your premiums.
Forgiveness has nothing to do with the points on your driving record. Your driving record is connected to the government. For a company to forgive you will NOT be able to erase your points or accidents from your driving record.
Accident forgiveness is a specific offer of the company. If you move to a new car insurer, there is a chance that the accident was recorded within your insurance premium, even if your previous insurer forgave you.
How can you qualify as an accident?
Each car insurance company has a slight difference in accident forgiveness.
In general, there are three circumstances in which an insurer would offer an accident forgiveness:
- The acquisition of new clients: Insurance companies realize that they are less likely to be left if they do not punish for a past accident; Therefore, several of them offer accident forgiveness to customers with a recent stain on their driving record.
- Customer Loyalty: Some insurers offer accident forgiveness to customers who have been with them for a certain period of time.
- The record of driving history: Many insurers require that drivers have a clean driving record for a certain period of time.
Some require both loyalty and a clean driving record to qualify for accident forgiveness.
Which insurance companies have Accident Forgiveness?
Accident forgiveness has become very popular in the auto insurance industry as a means to attract and retain loyal (and safe) customers, and a number of companies now offer some variation (which may vary from one state to another):
Liberty Mutual: This is our own insurer. Because we have had zero accidents or appointments in a long time, we were eligible for accident forgiveness with Liberty Mutual. There is no additional charge for accident forgiveness. With Liberty Mutual, you are eligible for 5 years free from accident and driving violation, regardless of when it was changed to them.
AllState: In AllState, accident forgiveness comes if you choose the YourChoice Auto plan, which has a premium cost. No premium increases are observed, you must talk to an agent. Forgive the price? Probably not worth it.
Nationwide: National accident forgiveness is an option you can buy and can only be used in an accident per policy. If you are 5 years old without an accident, you can get a 10% discount.
Geico: According to Geico:
“Accident forgiveness only applies to your first accident. Your insurance rate will not rise as a result of your first rechargeable and faulty accident. Subsequent events do not qualify for accident forgiveness. Eligibility is determined by the type of specific policy, as well as its state laws and regulations. Terms vary according to state law. “You must be accident free for 3-5 years.
Progressive: On the Progressive website, the only mention of accident forgiveness is
“With the Progressive Loyalty Rewards program, we celebrate you! Being automatically enrolled and instantly rewarded. The program offers benefits such as money-saving discounts and accident forgiveness.”The benefit of accident forgiveness is an area in which car insurers are not being very transparent, of course.
A final note on Accident Pardon:
Liberty Mutual seems to have the best accident forgiveness policy, but nevertheless, I do not recommend choosing an auto insurance policy solely because of the fact that they have an accident of forgiveness. The price and reputation of the company are more important factors. If you go with an insurer that does not offer accident forgiveness, it is not the end of the world – if rates increase, you can compare prices and go to others.
However, if you have had an accident and were “forgiven”, it may seem damn cool, in retrospect.
Unfortunately, however, your auto insurance claim will continue to appear on the track report for insurers in the future if you change policies.
Have you used accident forgiveness?
How does accident forgiveness work at your auto insurance company? How much?
