Accident Forgiveness

If you’ve ever been in an at-fault car accident, you understand the impact is not just on your car but also to your wallet. Yes, your auto insurance most likely paid for any necessary car repairs. But when your car insurance is renewed, you could be penalized significantly for this accident by your insurance provider. After filing an automobile accident, many drivers in our area see their annual auto insurance premium increase by as much as 50% or more.

On the other hand, if you had the Accident Forgiveness endorsement on your car insurance policy at the time of the accident, your insurance carrier may choose to “forgive” you for this incident. More specifically, this means that your insurance company would not raise your car insurance rate due to this crash.

We’re not surprised that you’re now interested in adding this coverage to your car insurance policy. The following are three steps you should take to see if this endorsement could be right for you and other drivers in your household.

1. Find out if your current car insurance carrier offers Accident Forgiveness. Although Accident Forgiveness is becoming increasingly popular, not every insurance company offers it. If your current carrier doesn’t have the Accident Forgiveness endorsement, your local insurance professional should have access to several other companies that do and should be able to help you make a switch to a new carrier if you would like to.
2. Determine if you’re eligible for Accident Forgiveness. Not everyone qualifies for this endorsement. If you’re prone to accidents, then you’ll probably have to wait until your driving record has been clear of collisions and traffic violations for several years to gain access. However, if you’ve kept a collision- and violation-free record over the last six years, then this endorsement should be available to you. In addition, carriers typically want newly licensed drivers to build up their driving experience for at least six years—and, obviously, have no accidents or tickets during this time—before offering them the Accident Forgiveness option.
3. Evaluate whether you want to pay the price for Accident Forgiveness. Not every insurance carrier charges the same amount for this endorsement, so your local insurance professional should also be able to help you compare different prices from a variety of companies. Generally, you’ll find that this option costs approximately $65 to $95 per year per vehicle, or as little as $5 to $8 per month per vehicle. Many drivers find this minimal cost worthwhile because Accident Forgiveness offers them the confidence and peace of mind that their premium may not go up by hundreds of dollars if they get in an at-fault accident.

Accident Forgiveness might be a valuable endorsement to add to your car insurance policy. Before you sign up, though, you should have a conversation with your local insurance professional to make sure you understand all the details of this cost-saving protection.

While the Accident Forgiveness car insurance endorsement may seem straightforward, the pricing, program details, and eligibility for this coverage can vary widely among carriers. It can often save you money and headaches to work with a local, knowledgeable, and experienced insurance professional to secure the program that best fits your needs.

The BayCoast Insurance team is happy to assist you in finding the right Accident Forgiveness program from one of our select car insurance carriers. Additionally, we are committed to sharing all the finer details of this endorsement so you can fully understand what you are buying.

For example, it’s important to know that you do not have to trigger your Accident Forgiveness benefits when you get in an accident if you don’t want to, although it would likely save you money to do so. In addition, you should be aware that once you use your Accident Forgiveness benefit, it cannot be used again for any other accident until your driving record is clean for at least another six years.

Also, we like to remind drivers that having the Accident Forgiveness endorsement does not mean your insurance carrier will forgive everything after an accident. You should pay any accident-related tickets and fines, and you will still be responsible for any insurance deductible that you owe. The good news is that you may be able to minimize this deductible over time by opting into the Disappearing Deductible policy option offered by many of our carriers. Quite a few of the carriers that BayCoast Insurance works with also offer an endorsement package that bundles Accident Forgiveness, Disappearing Deductible, and other smart endorsements, such as Loan/Lease Gap.

Our knowledgeable professionals are here to help you find the car insurance coverage options that are best for your driving behaviors and budget. We hope you will put our experience to work for you today by calling us at 508.491.3100.