How Does Accident Forgiveness Work and Who is Eligible for this Discount?

When you are looking for an auto policy that will help you save money, applying for every discount available to you will help. A program you may apply to your account is accident forgiveness. Before you apply for the plan, you need to know what it is and how it impacts your rates.

Basics of the Plan

The basic premise of accident forgiveness is simple: the insurance company will forgive one accident without increasing the cost of basic coverage. Drivers do not need to worry if another individual hits the vehicle because the discount helps eligible individuals retain the same rates.

Although the basics may sound good, you do need to consider variations between insurance providers before you determine that it will give you peace of mind. In some cases, insurance providers will only forgive accidents that are caused by other drivers. Since you do not cause accidents, you are not made to pay an additional premium. Other companies will forgive an incident or ticket, even if you made a mistake and caused the damage.

Before you assume that the policy is appropriate, contact your local agent and find out the details of the company's discounted rate. Determine if it applies to accidents you caused or only the accidents caused by other vehicle operators.

Eligibility Requirements

The requirements to qualify for the discounted rate and method of maintaining your current expense are usually related to your driving record. The company will obtain a copy of the record and look for past incidents. If you have never been involved in an incident or accidents, then you are likely to qualify for the company’s program.

If you have been involved in accidents in the past, then it is likely that you will not qualify for the plan because of your past history. The other factor is your credit report. A poor credit rating will always contribute to your ability to get the best costs, so it may impact the discounts that the company offers.

Making the Decision to Apply for the Forgiveness Plan

Ultimately, the decision to apply for the plan is a personal choice. In many cases, it is an appropriate move if you want peace of mind, but it might not save you anything if you are never involved in a crash. The only way to determine if it is appropriate is by evaluating your concerns.

Getting accident forgiveness can provide peace of mind, but it is not for every driver. If you are not sure about the plan, then contact your local agent to find out more about the programs that are available and how it will impact your current rate.