Several companies are promoting vehicle insurance coverage that conveniently looks the other way if you have accident. Sounds too good to be true? Well, maybe it is. While there are some advantages to the accident forgiveness trend, there may be a few things agents don’t mention when you purchase the accident forgiveness.
The Pros of Accident Forgiveness:
Who wouldn’t appreciate a reputable insurance coverage provider simply forgiving an accident and alleviating any otherwise serious consequences? Motorists opting to test drive accident forgiveness coverage on insurance often make the buying decision based on appealing commercials without completely understanding how it works. In theory, companies offering accident forgives policies advertise no-risk coverage if you’re involved in a collision, rear-ender or fender-bender for qualified drivers.
If you have a clean driving record, then you may qualify for accident forgiveness coverage. For such drivers, in theory participating insurance companies will overlook the first accident without raising the insurance policy premium. Furthermore, insurance deductibles could be lowered by $100 annually for every year that your driving record stays clean after an accident.
Major Auto Insurance providers including Allstate, Nationwide, State Farm, GEICO, Liberty Mutual, and Progressive offer coverage with accident forgiveness insurance. Allstate, however, is among the leading provider advertising accident forgiveness benefit. With a top of the line option, as well as a mid-range policy, customers may opt for the coverage that fits their budget and insurance needs.
The Cons of Accident Forgiveness:
Thrifty consumers will soon discover accident forgiveness isn’t cheap insurance and it comes with a laundry list of stipulations. For example, Allstate offers two plans: the Gold and Platinum. Not only is there a difference in price for reach plan with the Gold costing an additional 8% and the Platinum 15% more, but there’s also different requirements for coverage on insurance. Customers opting for the Gold plan are required to keep a clean driving record for 3 years before being protected, while drivers willing to spend a little more to purchase the Platinum plan receive accident forgiveness insurance coverage immediately.
While it’s difficult to calculate exactly how much you’ll save because of individual state laws as well as various companies have different requirements for insurance coverages. If you’re considering purchasing accident forgiveness coverage, it’s important to always read the small print and compare insurance terms and conditions between participating companies. Keep in mind that some agents may not outline the cons of the policy in hopes of making a sale.
Accident forgiveness shouldn’t be viewed as a “get-out-of jail-free” card for only those who can afford it. Drivers still must be responsible and try to maintain a clean driving record in order to keep affordable insurance coverage premiums as well as retaining driver licenses.
References on Insurance Coverages:
-Guide to car insurance Accident Forgiveness
-Truth behind Accident Forgiveness Insurance Coverage
-Available options for Car insurance coverage
