Accident Forgiveness is coverage that certain auto insurance companies give their insurers which covers accidents that happen to be your fault. Not only does this cover the financial consequences that would typically happen when an accident is your fault, but it also would likely prevent the insurer from experiencing any spikes in rates. You can typically acquire accident forgiveness by adding it as an extra feature to your policy while paying more money for it, or as a reward for being a safe driver over an extended period while also being a longtime customer of one agency.
Pros of Accident Forgiveness
Accident forgiveness is not necessarily cheap, but the primary benefit of having it added to your policy is that your rates can be saved up to a 50% spike if you do happen to get into an accident. While many people trust their driving and their ability to not cause an accident, everyone does make mistakes. The extra money that you dish out monthly to cover accident forgiveness can end up saving you a large sum of money compared to the rates that you will have to pay over time in case you get into an accident.
Cons of Accident Forgiveness
Just because you get into an accident does not mean that your insurance rates will necessarily skyrocket. Fault can be difficult to determine in an accident, and oftentimes even if the accident is your fault your insurance will not change significantly. In cases like this, your accident forgiveness will not have done you much good in the first place. Another potential drawback of accident forgiveness is that it is not applicable in every state and is not available through every company either. This means that if you move while your policy is still active, you could unknowingly waste money. Overall, there are plenty of good aspects to accident forgiveness, but it is up to you to research specific plans and see how they would apply to your situation.