Winter is the most dangerous, deadly and costly season for drivers. Millions of cars hit the road for holiday travel, and bad road conditions caused by temperamental weather greatly increases the number of car insurance claims during this time of year. Increased claims and accidents lead to much higher insurance rates for drivers involved in accidents. Most insurers greatly increase the rates of any policyholders that are involved in at-fault incidents, and a policy cost can jump up by a huge percentage in some situations. To avoid this risk, many drivers are choosing policies with terms relating to “accident forgiveness.”
Accident forgiveness programs help good drivers avoid increases in their car insurance costs caused by a single, isolated accident. If a driver has a long and generally good record with the insurer, the basic function of accident forgiveness is to do exactly what its name suggests. This sort of policy stops one accident from counting against a driver on their record or insurance. This can be a huge benefit for some drivers. However, there are a number of catches involved. Forgiveness programs are very often not a free part of a car insurance policy. They usually require a higher overall rate (though not nearly as high of a rate as drivers would see if they were involved in a car insurance claim without the program). Also, a driver’s record must be very good in order to keep a car insurance policy with such terms. One too many traffic tickets can be enough to end a driver’s Accident Forgiveness coverage, and multiple accidents will certainly cause the policyholder to lose the option.
Different accident forgiveness programs also vary from one insurer to the next. A program may provide complete “forgiveness” for an accident, or just a partial protection from rate increases. A probationary period may also be established in some cases, and if a driver has another incident within that period, protection is removed retroactively. Accident forgiveness may be provided as a part of a customer loyalty program in states where such programs are legal. From one insurer to the next, the same terms might mean something completely different.
It’s important to check whether your policy offers accident forgiveness, and read the terms very carefully that outline what “forgiveness” means with your insurer. Contacting your insurance agent and discussing the term can help to avoid a costly misunderstanding. Remember when shopping for car insurance that different companies might interpret accident forgiveness in completely different ways, and never assume that your coverage will be the same under two different insurance companies. Taking some time to read your policy is always a good idea, and you’ll be better informed about how you’re covered.
