“Accident Forgiveness Coverage: Is It Right for You?”

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What Is Accident Forgiveness?

Accident forgiveness is an optional add-on policy offered by many car insurance companies. It prevents your premium from increasing after your first at-fault accident. This coverage is not available in every state and is typically offered to drivers with a clean driving record for a certain period.

Some insurers, like Allstate, Liberty, and Nationwide, allow you to purchase this coverage as an add-on to existing plans. Others, such as Progressive, offer it as a loyalty reward for long-term customers who have been accident-free for at least five consecutive years.

Pros and Cons of Accident Forgiveness Coverage

Like most insurance features, the value of accident forgiveness coverage depends on your individual situation.

Pros

• Prevention of premium increases: Adding accident forgiveness usually costs less than 5% of your annual premium. It offers peace of mind by ensuring your premium won’t skyrocket after an accident.
• Could be free: Some insurance carriers offer accident forgiveness without a premium increase as part of their loyalty programs. Once you earn it, you can use this benefit to your advantage.
• Peace of mind: This coverage can reduce the stress of driving by alleviating concerns about potential rate hikes after an accident.

Cons

• Cost: If you have a long history of safe driving or rarely use your vehicle, the cost of accident forgiveness might not be justified.
• Limitations: Earning eligibility for accident forgiveness can be challenging. It usually protects against a premium increase from a single accident and may have usage limitations.
• No protection against losing coverage: While accident forgiveness prevents premium increases, it doesn’t protect you from being dropped by your insurer for risky behavior, such as driving under the influence.

Is Accident Forgiveness Worth It?

Accident forgiveness can be a wise add-on for some drivers. If you have a history of accidents or believe you might have one in the future, this coverage could be beneficial. Premiums can increase by up to 50% after an accident, and the record can stay on your file for three to five years. Accident forgiveness usually costs less than 5% extra on your insurance payments, making it a worthwhile investment for many drivers.

The Bottom Line

If you’re interested in accident forgiveness coverage, check with your insurance company to see if they offer it and how to acquire it. Even if your current carrier doesn’t provide this coverage, other companies in your area might offer it at a reasonable price.

Finding the best insurance for you means knowing your options. With Experian, you can provide your information once and get online quotes from over 40 insurance companies, all in one place.

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