What is Accident Forgiveness?

Your “Get out of jail free” card

Let’s say McFarlan and Rowland get into an accident, one of them is holding a get out of jail free card while the other is not. This ‘get out of jail free” card in insurance terms is called accident forgiveness which is an endorsement listed on your auto policy. This endorsement means that your rates will not increase due to your accident and your insurance record will remain as it was prior to the at-fault accident. Someone who does not have accident forgiveness could be subject to rate increases as a result of the same accident.

Previous claims and convictions are direct factors in determining insurance rates. If you have been involved in an at-fault accident and insurance paid out on it, your insurance rates are guaranteed to increase. Insurance rates are based on statistical information including your age, the vehicle you drive and previous driving habits. Considering this information, having your first accident forgiven is a no brainer. Accident forgiveness is not offered to everyone, and is based on good driving habits and driver experience. Whether you are a new driver or an experienced driver it is possible this may not be offered to you by your insurance provider. If you have had a previous at fault accident this coverage may take a few years to be offered again.

Accident forgiveness is an endorsement that your insurance company offers you, but it does come with a price and every insurance provider is different in their pricing.

Accident forgiveness is extremely handy to have to guarantee your insurance rates in case something were to happen where you had to submit an insurance claim. We encourage you to speak with your broker to see if you qualify for accident forgiveness on your auto insurance policy.