-------------------------------
“Ask Jeff" is a weekly post made on the RyanAgency.com Blog.
Submit an insurance-related question to “Ask Jeff”.
-------------------------------
Get in touch
555-555-5555
mymail@mailservice.com
What is Meant by Accident Forgiveness on an Insurance Policy?
Jan 03, 2021
Insurance may forgive, yet hope that you forget you might be paying extra for it.
“Accident Forgiveness” rating programs vary by the insurance company involved and the jurisdiction (state) involved.
In most circumstances, a policy endorsed to include “accident forgiveness” will forgo the addition of a normal “surcharge” following an “at-fault” accident over a certain dollar threshold.
However, in a few instances, accident forgiveness may include “not-at-fault” incidents and not include a threshold.
It might also be interesting to know that some insurance companies who make the biggest deal about their Accident Forgiveness Programs actually charge an additional premium for that benefit. Also, those same companies may not have the most attractive “forgiveness” factors included.
Often of some benefit to the insured, Accident Forgiveness programs does not mean your policy won’t go up in cost. Neither does it mean that additional accidents won’t result in a premium increase.
If Accident Forgiveness is a determining factor for you, check with your agent about the specific details of how that program applies before making a decision. A couple of good questions to ask would be:
- How much (if anything) does the benefit cost to add to the policy?
- In what situations would the “forgiveness” apply?
“Accident Forgiveness” rating programs vary by the insurance company involved and the jurisdiction (state) involved. In most circumstances, a policy endorsed to include “accident forgiveness” will forgo the addition of a normal “surcharge” following an “at-fault” accident over a certain dollar threshold.
As mentioned above in some instances, accident forgiveness may include “not-at-fault” incidents and not include a threshold.
It might also be interesting to know that some insurance companies who make the biggest deal about their Accident Forgiveness Programs actually charge an additional premium for that benefit. Because of that, those same companies may not have the most attractive “forgiveness” factors included.
Accident Forgiveness programs can be of benefit to those receiving them. However, that does not mean your policy won’t go up in cost. Neither does it mean that additional accidents won’t result in a premium increase.
If Accident Forgiveness is a determining factor for you, check with your agent about the specific details of how that program applies before making a decision. A couple of good questions to ask would be:
- How much (if anything) does the benefit cost to add to the policy?
- In what situations would the “forgiveness” apply?
Have additional questions about your car insurance? We LOVE to help. Please feel welcome to call us at 607-382-1235.
This article may have been originally published at Quora.com.
To see Jeff's Quora.com profile click here.
According to a recent survey, only 37% of renters have renters' insurance, leaving the majority at risk of financial loss. With the low cost to transfer your risks of loss, there's never been a better time to consider tenant insurance.
Personal injury is different from bodily injury and is treated as such by homeowners' liability forms. Learn more>
The purpose and importance of annoying insurance audits for determining the appropriate rate for your business
What does Bait-and-Switch have to do with insurance? And why has it recently been in the news?
The insurance landscape is currently facing unprecedented challenges. At The Ryan Agency, with over 60 years of service to our community, we understand that this might be the toughest insurance market yet.
When your car is hit while parked and unattended, it's important to know your options. Here are some steps you can take to protect yourself and get your car repaired.
Understanding Insurance Responsibility After an Accident: Who Pays for What? Delve into the intricacies of insurance responses when accidents occur.
Discover the real history of New York's Supplemental Spousal Liability Insurance Coverage and its Impact Today.
As electric bikes soar in popularity, questions about insuring them become essential. Discover the options for coverage and how E-Bike insurance differs from traditional policies. Get expert advice on the best ways to protect your investment.
Unlock the Secret to Employee Classification: Protect Your Business, Avoid Costly Consequences. Discover the key to proper classification and safeguard your future.
