Is It Cheaper To Pay For Accident Forgiveness Insurance Or Not?

By Mike Anderson Posted in Car Insurance News

In the auto insurance world “accident forgiveness” is the number one term used to attract customers to that particular company. What really is accident forgiveness? Accident forgiveness can be a very attractive feature in the policy. It is capable of saving you a great deal of money over a period of time if you are involved in a accident while insured with a policy offering it. Before deciding if this is right for your type of need look at the whole picture first.

What Is Accident Forgiveness Really About?

If you are involved in a accident and your auto insurance company has the accident forgiveness on your policy then you will be protected to a certain extent from your rates increasing on your coverage from that accident if it is proven to be your fault. The accident forgiveness keeps your driving record rating from falling to the lowest possible level after a accident that was found to be your fault.

What Are The Advantages?

One of the advantages of accident forgiveness would be an accident occurs and its proven to be your fault then your rating that before was a six-star will stay a six-star or drop to a five-star. It would probably not even drop if you have a long driving history without any accidents before. If you was in the same situation and did not have the accident forgiveness then your rating would drop to a zero-rating. This zero-rating could result in drastic increase in your premium, cancellation of your policy or even a non-renewal of your policy. So potentially it could save you a great deal of money in the long run.

What Are The Disadvantages?

One disadvantage of accident forgiveness is the price. If you are on a tight budget then you might need to look at all of the policies with and without accident forgiveness. Another disadvantage is that its not transferable. If for some reason you switch insurance providers, you have to tell the new insurance company about the accidents. The accidents are not wiped clean, its just the insurance company that had the forgiveness just “overlooks” the accidents while you are carrying that type of insurance with them.

After a lot of consideration about all the different auto insurance with or without accident forgiveness is something you will have to weigh the pros and cons before definitely deciding what insurance is right for you in ever which way.

Related posts:

  1. What Does Accident Forgiveness Mean For Car Insurance?
  2. If I Report An Accident, How Much Will My Car Insurance Rate Go Up?
  3. What Does No-Fault Insurance Mean And Work?
  4. Which Insurance Companies Do Not Look At Your Driving Record?
  5. What Is Personal Injury Protection For Car Insurance?

Leave a Reply