insurance - accident forgiveness

[rob the knob]

do you many people purchase accident foregiveness on your insurance? is it worth it? what is your situation and what did you decide to purchase or not?

[Weapon_R]

Definitely worth it. The rates do not change even in an at fault accident.

[Speed_69]

I work in the insurance industry so I may be alittle biased but would have to say it's well worth the $45 or whatever the fee you have to pay for it every year. It gives you peace of mind knowing that even if you're involved in one at fault accident, your rates aren't jumping up next year.

When i worked as an insurance broker, I could never understand why someone would even choose to decline a coverage that's so cheap that could save them $$$ in the long run. But then again, everybody out there believes that they'll never be involved in an accident where they're at fault

[Ichigo]

Does accident forgiveness only work once?

[Masked Bandit]

I've got mixed feelings on the coverage. Some companies (providing you qualify) throw it in for free. Some companies charge $30 - $50 a year per vehicle. Some of my clients keep it, some don't. The industry as a whole tried this once before five or six years ago and then bailed. It's been back for about two years now and seems to be sticking around. Not all of the companies offer it either.

The one thing to remember is that if you purchase the coverage and use it (have an accident), you are captive to that company for the next six years because the "forgiveness" only applies to that company. If you want to go anywhere else you are hit with your accident. With that said even without the "forgiveness", if you have reached at least six years of clean driving and then have an accident, your existing company will hit you less than trying to move for the following six years anyway.

I don't carry it on mine but I haven't had an at-fault accident in over 15 years. If I did hit something my rates would go up about $150 a year for five years. The other thing that needs to be considered is your personal financial situation. My insurance going up $150 a year, while being a piss-off, isn't really going to make any difference to our household. However if that jump hurts your budget, then the extra peace of mind might be worth it.

The other thing I considered was the real-world financial impact of this coverage. The insurance companies have obviously analyzed thier own data six ways from Sunday and have figured out that over the long run they will make more money like this...meaning over the long run the customers AS A WHOLE are going to be paying more. If you end up triggering the coverage then yes, you are a winner. But just like Vegas, over the long run, the house ALWAYS wins.

[Masked Bandit]

Originally posted by Ichigo
Does accident forgiveness only work once?

Yes. And to expand on that, if you have a second at-fault claim in the following six years your company will then hit you with BOTH accidents.

Generally speaking the forgiveness is also void if you are convicted of a criminal offense resulting from the accident (think Impaired Driving).

[Kloubek]

I got it on mine. It was something like $27 - so it seemed like a good idea.

I too haven't had an at-fault accident for 16 years (minus a tiny bumper clip in a parking lot at the start of the year)... but you never know.

[Aleks]

I have it on both cars no charge (or so they say)

[ExtraSlow]

I let my wife drive my cars, I have the accident forgiveness.