Avoiding an Insurance Increase Through Accident Forgiveness

"Chargeable" Mishaps

Not all accidents can result in a fee. Accidents that you create are usually "chargeable." Here is a popular list of non-chargeable accidents used in the insurance business.

•Your vehicle was legally parked at the time.

•You were compensated for your losses by the individual who caused them, or you obtained a judgment against that person.

•You were rear-ended by another car but did not incur a moving infraction as a result of the collision.

•You were not convicted of a traffic offense whereas the other motorist was.

•Your vehicle was involved in a hit-and-run and you reported it to the appropriate authorities within 24 hours.

•Contact with animals or fowl caused the harm.

•The damage was caused by falling items, flying gravel, or missiles.

•You were responding to an emergency as a paid or volunteer member of a police department, fire department, first aid squad, or law enforcement organization at the time of the accident.

Are You Eligible For Accident Forgiveness?

Not everyone is eligible. You may not be eligible for accident forgiveness if you or another motorist on your insurance caused an accident during the past three to five years.

The length of time an insurance company examines at your driving record depends on your state. For example, if you cause a vehicle accident in New Jersey, New York, or Texas, insurance companies may only penalise you for incidents that occurred within the last three years. If you commit an accident in a state such as Massachusetts, insurance providers might go through your driving record over the previous five years.

Which Vehicle Insurers Provide Accident Forgiveness?

Examples of accident forgiveness programmes from some of the top insurance companies are shown below. Remember that your insurance may not provide accident forgiveness programmes in your state. It is not permitted to be offered by any insurer in California.

Allstate accident forgiveness is an optional service that will cost you more money. When you begin your Allstate coverage, you have the option of enrolling in accident forgiveness.

Farmers Insurance accident forgiveness forgives one at-fault accident for every three years you go without having one.

Liberty Mutual accident forgiveness is offered for an additional fee if you haven't had an accident or moving infraction in the previous five years. It overlooks the first mishap.

Nationwide accident forgiveness is more expensive and can only be utilised once.

Accident forgiveness is available via Progressive's Loyalty Rewards programme if you qualify. When you first purchase your policy, Progressive provides "minor accident forgiveness" for claims of $500 or less. "Large accident forgiveness" is available to clients who have been with the company for at least five years and have not been in an accident in the previous three years.

Accident forgiveness is an optional feature of Travelers Insurance "Responsible Driver Plan." This is good for one accident every 36 months. There is also the option of "small infraction forgiveness."

Depending on your state, USAA accident forgiveness may be free if the drivers on your insurance have not been in an accident in the previous five years. Accident forgiveness is only available for one accident per insurance.

Is It Worthwhile To Forgive An Accident?

If you're thinking about purchasing accident forgiveness, evaluate the expense against the possible rate rise for the following three to five years if you or a motorist on your policy is involved in an accident. Your insurance agent may advise you about potential accident fees and how long they will remain.

Ever Quote compared premiums reported by consumers with a "chargeable" accident to those with a clean record. The rate rise following an accident is 34% nationwide.

You may not want to pay more for accident forgiveness because it is for incidents that have not yet occurred and may not occur. If you're a careful driver and your insurance provider doesn't provide accident forgiveness as a free benefit, you may be eligible for alternative car insurance reductions, such as a good-driver discount.