Like every driver, you observe utmost care while on the road.
Yet, there’s only so much that you can control. After being in a car accident, you will be faced with financial consequences: medical bills and repair costs. As expected, claims can potentially increase your car insurance premiums in the future unless your policy has the accident forgiveness clause.
Accident forgiveness explained
Accident forgiveness is one of the many perks in auto insurance. This clause changes how the insurance provider reacts to collisions. They acknowledge and record that you are responsible for the crash but with accident forgiveness in place, they agree to not put an increase on your future insurance rates.
Keep in mind though that this benefit does not provide any motorist the right to be recklessly driving or be involved in various accidents without having to face penalties or consequences. Some insurance companies only provide accident forgiveness for the policyholder’s first incident.
Not every driver can enjoy the benefit of accident forgiveness. While insurers advertise them freely, there are some restrictions to this kind of policy. In some states, accident forgiveness is not allowed to be part of any auto insurance policy.
In most cases, eligibility depends on satisfying these 2 criteria:
- Policyholder’s Loyalty – For a pre-identified number of years, you should have maintained a car insurance policy with the same provider.
- Driving Record – Depending on the time that has been initially set, you must keep a clean driving record. Besides accidents, traffic violations and other citations may go against you.
Insurance providers are likely to charge you an additional amount for including forgiveness in your policy. Some may add it to your coverage as part of the package but expect to have a little higher premium base rate. Since every insurer makes their own decision in identifying plan particulars, make sure to compare different options to get the best deal.