Auto insurance is a significant expense for many drivers, and it’s important to save money whenever possible. Many insurance companies offer perks that allow drivers with good records to maintain low rates, and one of the most common perks is accident forgiveness insurance. At American Auto Insurance, we want to help our responsible customers save money on their policies, and accident forgiveness is a great way to do that.
In this article, we answer some common questions about accident forgiveness insurance. We hope this helps you decide whether it’s the right choice for you. Keep reading to learn what accident forgiveness insurance is, how you can qualify, and whether it’s worth it.
What Is Accident Forgiveness Insurance?
There are two primary categories of accidents: at-fault and no-fault. If you’re involved in a no-fault accident, this means that the other driver, or possibly nobody, is responsible, while an at-fault accident means you caused the accident and you’ll have to shoulder much of the financial liability. Insurance companies pay close attention to your driving record, and it can make a big difference in how much you pay for your auto policy. Chances are that if you’re involved in an at-fault accident, your prices will increase. This record will also follow you if you end up going to another carrier for a new policy.
Most auto insurance providers offer a special type of coverage called accident forgiveness. This is a policy that helps policyholders save money if they’re involved in an at-fault accident. In most cases, it prevents insurance costs from increasing after a driver’s first at-fault collision. Each insurance company has different rules about who can qualify, and in some cases, accident forgiveness is added to a policy as a reward for safe driving habits and a clean record. This is one way that insurance companies can incentivize safe habits on the road.
In most cases, the forgiveness only applies to a single accident, and won’t cover a second, even if it’s caused by a different individual on the same policy. Your accident will also stay on your driving record, even if your premiums don’t increase, which may make insurance more expensive if you decide to change carriers.
Some insurance companies offer accident forgiveness by default, while others offer it as an add-on that you can purchase in addition to your regular coverage. Eligibility and other rules may also depend on the laws in your state. It’s important to remember that not all companies offer accident forgiveness, so be sure to check with your provider before you purchase a policy.
How Do You Qualify for Accident Forgiveness in Illinois?
Like in other states, accident forgiveness eligibility is determined by the company providing the car insurance. Because of this, its best to check with your provider and ask them whether you qualify. As we mentioned above, some carriers will offer accident forgiveness and others won’t, and each company might have slightly different rules.
In most cases, a driver must have a clean record to qualify for accident forgiveness. This means that they haven’t been involved in any at-fault accidents and don’t have any serious traffic violations. From the insurance company’s point of view, this ensures that they can generally trust the driver to stay safe and drive responsibly. These qualities in a driver make accident forgiveness a better investment for the carrier and can help incentivize better driving.
Insurance providers will also only cover a single at-fault accident per policy. This means that if you and your partner are on the same policy and one of you is involved in an at-fault accident, the accident forgiveness is spent. If the other partner has a second accident, it won’t apply, even though it’s a different driver. Some companies do allow drivers to reapply for accident forgiveness after several additional years of safe driving.
Is Accident Forgiveness Insurance Worth It?
If you’re a safe driver with a good record, you may be wondering whether accident forgiveness is worth it for you. While each person’s calculations may vary, there are considerations to keep in mind. First, no matter how well you drive, it’s impossible to control the actions of other drivers on the road. In most cases, if you’re the victim of a no-fault accident, you won’t be penalized. In some cases, however, you might be erroneously judged fully or partially at-fault and suffer penalties. In these cases, accident forgiveness can be very valuable.
Accident forgiveness insurance may also be a good idea if you have a risky driver who shares your policy. For example, you may have a teenager who recently learned to drive. Even though they may try to drive safely, they might be involved in an at-fault accident, making coverage a good idea.
It’s also helpful to note that accident forgiveness is generally very affordable compared to other types of protection and may only contribute marginally to your annual rate. Additionally, some carriers provide this type of coverage for free if you qualify. With these factors in mind, accident forgiveness insurance is generally a great idea, although it’s important to consult with your carrier and fellow policyholders before deciding.
That’s a quick overview of what accident forgiveness insurance is and how it works. We hope this makes it easier for you to save money on car insurance and choose the plan that works best for you. If you’re looking for affordable and comprehensive auto insurance in Illinois, look no further than American Auto Insurance.
We’ve been a Better Business Bureau A+ rated agency for over 35 years, and we are standing by ready to help you find a great policy at a price you can afford. Our lowest prices start at $14 a month, we offer 24/7 roadside assistance, and we provide coverage without credit scoring. If you’re interested, give us a call at your earliest convenience or go online for a free quote. No matter what kind of coverage you need, we can help you get a policy. Stay safe on the road, and we hope to see you soon at American Auto Insurance.