Nobody is perfect. Mistakes are going to be made, and this includes mistakes that are made while you are driving. Could an accident forgiveness insurance policy help prevent your car insurance premium from skyrocketing after you are involved in an accident?
Accident forgiveness insurance sounds like a pretty amazing type of insurance policy. To me, it sounds as though one could use this type of insurance to protect yourself against the consequences that arise after you have done something incredibly stupid. Accidentally left your brand new iPhone in the bathroom at the airport? Accidentally sent your credit card number to an email that turned out to be a phishing scheme? Answered too honestly when your spouse asked you if that dress made her look fat? You may think that something called “Accident Forgiveness Insurance” can swoop in, like a superhero, and make everything all better. Unfortunately, this is not how accident insurance really works.
Accident forgiveness insurance is a type of automobile insurance. The purpose of accident forgiveness insurance is to prevent your car insurance premium from going up after you get into your first auto accident that you were at fault for. It protects the customer from getting financially penalized by the insurance company due to one accident. Again, no one is perfect, and accidents do happen. Accident forgiveness insurance is not the same thing as no-fault auto insurance, even though the names sound like they could be they are same thing.
Do you need accident forgiveness insurance? You might, or you might not, depending on your situation. The first question you need to answer is: Can you afford to purchase it? Most insurance companies will sell accident forgiveness insurance as something that you can elect to add on to your already existing auto insurance policy. Adding additional insurance often comes with an additional cost to your premium. If you cannot afford to pay more than you are already paying each month on your premium, then you cannot add the cost of accident forgiveness insurance to it.
Can you qualify for accident forgiveness insurance? Insurance companies expect that teenage drivers will get into some auto accidents. They also expect people who are brand new to driving to end up in some accidents as well, no matter what age that person happens to be. If this describes you, your insurance company might decide that you do not qualify for accident forgiveness insurance.
If you are the parent of a brand new teenage driver, and you add that teenager to your car insurance policy, doing so might have made yourself ineligible for accident forgiveness insurance. Drivers who have a terrible driving history, filled with many auto accidents, and lots of expensive insurance claims, might not qualify for accident forgiveness insurance either.
Accident forgiveness insurance is for safe drivers, who have very clean driving records. Ironically, this is the group that is the least likely to get into a car accident, although it still could happen.
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