Accident Forgiveness Obsolete - Car Insurance Quotes

By Author: Norris Rios
Total Articles: 572
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I'm sure you've seen the commercials touting accident forgiveness as some kind of auto insurance messiah. The notion that you could cause one collision and not have to pay any more in premiums thereafter sounds like a fairy tale.

Well, according to several consumer advocates, it is.

Saying it chalks up to an advertizing gimmick, and a very good one at that, one advocate interviewed for this article said, "Sure, these clauses exist, but if you can get one for a reasonable price then you probably don't need it."

What is Accident Forgiveness?

After an at-fault collision, most drivers see their insurance rates spike by as much as 40%!!! For many people, that can mean well over $1,000 more in payments a year.

Accident forgiveness is a clause you can tack onto your insurance policy that says your rates will not go up any after your first at-fault collision.

In exchange for this add-on, the insured party has to pay higher premiums from day one.

Who is Eligible for Accident Forgiveness?

First off, accident forgiveness is not available from most insurance companies.

The insurer ...
... will need to assess your driving record in order to determine what you should be charged for accident forgiveness, so young and new drivers are not eligible.

People with bad driving records (lots of tickets and a few collisions) will also be excluded from eligibility. If you do qualify for it, it might cost so much in premiums that it is not worth it.
People with stellar driving records do qualify.

Who Can and Cannot Benefit from Accident Forgiveness?

No matter who you are and how good your driving history may be, your premiums will increase with an accident forgiveness clause on your policy.

Teenagers and parents with teenagers on their policy will also not benefit from this because teen rates do not usually go up after their first accident, unless there are criminal circumstances involved (which would not be helped by an accident forgiveness clause). Teens are assumed to be high risk already, and one at-fault collision just confirms this. Simply put, you can save more money without the add-on.

People with bad driving records probably won't be offered the option of accident forgiveness. Even three collisions in the past five/ten years might be enough to disqualify you. Why? It would be bad business for them to offer this clause to people who will probably use it!

People with clean records might benefit from it if they happen to get in an accident within 6 months of signing the policy. However, if you haven't been in a collision ever or in the last ten years, then your rates would probably not go up much anyhow. In fact, the increase in your premiums for adding the clause would likely be higher than the increase in your insurance were you to cause a collision.

How do you save money then?

If you get in a collision and your insurance goes up a lot, try getting car insurance quotes. Finding a better rate is easier with instant, free, and effective car insurance quotes. Compare policy details with online car insurance quotes.