What Are the Facts About Accident Forgiveness?
The amount a driver pays for automobile insurance is based on a number of factors. One of the most crucial is your driving record including whether you have had speeding tickets, moving violations or an actual collision. The risk you pose as a potential high risk to the insurer determines how much they require you to pay. If the insurer offers accident forgiveness it is an incentive to purchase your insurance policy from them. Possibly, this will convince you to switch your coverage from another insurance company to their insurance company.
An offer of accident forgiveness is not the company overlooking the fact someone has an accident on his or her record. It is however, an offer to compute the amount you will pay for insurance without including that fact in the computation. This is a good reason for you to take out insurance from them to save money over insurance from a company that does not offer accident forgiveness.
It is not a way to remove your accident history from your record. If, at a later time you decide to change to another insurer, the accident may not be “forgiven” when that insurance company calculates your premium. This is a good incentive for you to stay with the insurer that does offer it. If enough drivers take their business to them, they will actually profit from giving this price break.
How Much Money Can You Save?
As you may know, only liability automobile insurance is required by law. This protects the other driver in case of accident. You may elect to purchase collision coverage, which covers your own vehicle’s damage. This usually includes fire and theft coverage as well as towing insurance. Therefore, you must analyze the entire cost when comparing prices from company to company. The insurer who includes accident forgiveness does not necessarily charge the lowest premium for your total insurance package.
Eligibility for the accident forgiveness feature is not automatic. Not every driver is going to qualify to receive it. Different insurance companies may have different requirements.