Will Your Auto Insurance Carrier Really Forget?
Accident forgiveness is the current, most popular, marketing technique used by auto insurance companies. It seems to be fair; and it may be, but continue reading.
Many auto insurers are offering accident forgiveness protection as an option for their customers. The auto insurer may provide discounts, or offer auto deductible reductions, for every year you go without an accident. The details, however, vary from company to company. Some may give you accident forgiveness immediately, while others will only do so after you've been an accident-free policyholder for as many as five years. You also may be required to have no moving violations over a period of time.
It should be noted that some insurers will not automatically increase rates if you have one accident and have been a good driver for many years.
Here are a few things to remember:
- Being a safe driver with no accidents or violations is the best way to keep premiums low.
- Accident forgiveness will not stop an insurance company from dropping you if you are a poor risk.
- With a good driving record, you may qualify for discounts. Accidents may remove these discounts.
- In general, accident forgiveness by itself isn’t a good reason to switch companies if you’ve already done your research and like your rates and coverage.