Accidents can happen to anyone, anytime. Though one shouldn’t go unpunished for the offense, making an individual pay for an incident even after maintaining a clean driving record is not fair.
Even a single incident can negatively impact the auto insurance quote. This is where the role of accident forgiveness insurance kicks in. It saves the policyholders from the negative impact of an at-fault accident.
It protects individuals from increased car insurance rates post an accident. The accident forgiveness feature can be considered an add-on. People with exceptional driving records qualify for this insurance for free.
Find more information here at Surex, one of the leading online insurance brokerages in the country – https://www.surex.com/Insurance/auto-car/edmonton.
What is accident forgiveness insurance and why are they important for drivers in Canada?
Accident forgiveness is a unique policy that reduces the possibility of an increase in insurance rate if the policyholder causes an accident. Generally, drivers who get into a car accident face a considerable rise in their car insurance rates for 3 to 4 years. Accident forgiveness saves the policyholder from that rate hike.
Insurance companies that offer accident forgiveness insurance consider several factors, such as an individual’s driving history, age, location, vehicle type, and others when calculating the rates. Drivers with good experience and clean driving records easily qualify for lower annual rates and additional discounts. Whereas risky drivers involved in an accident frequently could lose the credibility for such benefits.
How does an accident forgiveness policy work?
It is essential to understand precisely how accident forgiveness can work for you. Consider the following points before adding this car endorsement to your auto insurance policy.
Report the incident to your insurer first to get the full benefit of the policy
The policyholder must provide details of the accident to the insurance company right after the incident. If the other driver’s insurance provider offers info about the incident to your insurance company before you do, this endorsement will turn null and void. You should be quick and upfront to reap the advantages of accident forgiveness.
Driving experience of six years is mandatory to sign up for accident forgiveness
Drivers with excellent driving records and sound driving experience benefit from this car insurance endorsement. You must meet the following conditions to avail the benefits of accident forgiveness –
- Clean driving record in the previous 36 months.
- Minimal moving violations or speeding tickets
- Minimum six years of driving experience.
Note – If any dependent person, such as teenage children or spouse listed in the insurance policy, doesn’t have a good driving record or required driving experience, they won’t qualify for the policy.
Avoid switching to another insurance provider to ensure low premium rates
Even if your current insurance provider doesn’t consider the accident when calculating your premium rates, the incident will still be reported. Any claims related to the crash will be featured on your driving record for the following six years. So even if you consider switching to another insurance provider after the accident, they’ll consider your at-fault accident (which was forgiven by your previous insurance company) in their premium rate quote.
Accident forgiveness coverage is valid for only one at-fault accident
Suppose the policyholder is in an at-fault accident and chooses to use accident forgiveness. In that case, they can’t use this additional insurance endorsement again until the next six years until their driving record is clean. The same applies to the beneficiary listed in your policy.
Suppose you or the beneficiary commits an at-fault collision for the second time before completing that tenure. In that case, you can’t use accident insurance to avoid increased insurance premiums at renewal time.
Who is qualified for accident forgiveness?
Generally, Accident Forgiveness is automatically added to the car insurance of the policyholder if they qualify for the conditions listed below –
- Not charged with an at-fault car accident in the past six years
- Must have active insurance for the past six years
- Must have a valid driving license (for the past six years)
- You shouldn’t have any record of auto coverage cancellation for non-payment
- You shouldn’t have any significant convictions (criminal or severe kind). However, minor convictions up to four times have been permitted in the previous three years.
How to claim accident forgiveness?
Dealing with an accident is stressful and emotionally retarding. The burden of repairing the vehicle and penalties related to the incident takes a toll on the driver. But things will be comparatively easy if you have accident forgiveness added to your insurance policy. However, you must act quickly and smartly after the accident and report it to your insurer at the earliest. Follow the steps listed below to claim your benefits under accident forgiveness.
- Call your insurer and report the incident.
- Take photos of your vehicle and document the damages.
- Collect necessary info from the driver of the other vehicle
- Submit all the documents to your insurer
- Contact a towing company.
If you qualify for accident forgiveness insurance and meet the set criteria, your insurance company will consider it an at-fault accident. As a part of the benefits, your car insurance premiums won’t increase because of the first at-fault accident you committed.
Adding accident forgiveness to your insurance policy will ease your financial implications after the accident. However, it’s always best to avoid accidents and practice safe driving. Avoid driving when feeling drowsy, avoid distractions, and maintain complete focus on the road while driving.
What is accident forgiveness insurance and how does it work? — Endnote
Insurance accident forgiveness is a highly beneficial additional insurance endorsement for people with good driving records and experience. The only limitation is that it applies to only one at-fault accident, even if there are multiple drivers in your insurance policy. Also, some insurers let the policyholders use accident forgiveness only one time per policy.
In contrast, others may require you to maintain an accident-free driving record for years to renew accident forgiveness for free. Alternatively, you pay an extra amount for upgrading your policy with accident forgiveness.