What is Accident Forgiveness?
Accident Forgiveness is an optional benefit offered by many auto insurance providers. It allows policyholders to avoid increasing their insurance premiums after their first at-fault accident. Normally, when a driver causes an accident, insurance rates rise to reflect the increased risk. However, this penalty is waived with Accident Forgiveness, keeping rates steady.
Accident Forgiveness typically applies once per policy period, and some insurers may offer it as a free perk to long-term, safe drivers, while others charge an additional fee. It is important to note that the benefit only applies to the first at-fault accident, and subsequent accidents may still lead to premium hikes.
This feature can be particularly valuable for drivers who want peace of mind, knowing that a single mistake won’t lead to significantly higher insurance costs. However, not all drivers qualify for Accident Forgiveness, and some policies may have specific eligibility requirements, such as having no prior accidents within a certain timeframe.