Accident Forgiveness Support is a relatively new rider available with some vehicle insurance companies. It is not available in every state and may not be available to all drivers.
You can add this rider to your standard auto policy. Or it can be made into a standard policy, depending on your insurer. Either way, it’s a handy advantage for new drivers, teen drivers, and historically safe drivers. So today, we’ll take a look at accident forgiveness on auto insurance and tell you everything you need to know.
What is Accident Forgiveness Approval on Auto Insurance?
Accident forgiveness is usually considered a “Support” on your auto policy. In other words, it’s an added benefit that you can buy for the extra money. Approvals are also known as “riders” and we wrote more about them. Sometimes, a standard auto policy includes accident forgiveness.
How does accident forgiveness work
Accident waiver allows a safe driver to claim an accident without a change in premium. It’s usually only available to drivers with squeaky-clean driving records.
Without the Accident Waiver Rider, you would probably see an increase in insurance prices after the claim. This increase depends on several factors, such as your overall driving record and the total amount of the claim. Without the Accident Forgiveness rider, premium increases after an accidental accident can last for many years and cost you thousands of dollars in the long run.
We can see how this coverage will bring peace of mind:
- parents of teen drivers
- Young drivers want to keep their rates affordable in the future
- and mature drivers with excellent driving history
For them, accident forgiveness is a nice benefit. But it is not available to everyone and is not legal in some states. Some insurance agents even consider this a marketing trick, and we’ll talk about that in a moment.
no accident pardon in california
California is by far the most populous state in the US. It’s also a home of more than 27 million licensed drivers. According to ABC NewsNearly two million more Californians are driving without a license. To put this in perspective, that’s almost three times the entire population of Ohio.
You’ve undoubtedly heard of haze and traffic problems in some California cities. There too, drivers without license and without insurance face problems. There are thousands of car accidents every day, and many times they involve undocumented individuals who have no license, no insurance, no identity and no home.
CA Proposition 103
In the 1980s, insurance companies paid for repairs after these accidents and transferred those costs to insurance customers. But safe-driving consumers felt that their rising premium was unfair.
So the consumers banded together and Voters passed California Proposition 103 in 1988. Ultimately, any auto insurer who wants to do business in California must offer a 20% discount to “good drivers.” The definition of “good driver” is straightforward: no DUI, no fault accidents, no serious claims, and so on.
- In fact, a “safe driver” insurance premium in California remained roughly the same.
- But a no-fault accident immediately puts a driver in a risk group that charges 20% more.
- They call it “losing your safe driver exemption”.
- But it is not a discount. This is a risk group rating.
What does all this have to do with the accident pardon rider? Well, in California, these ads are not legal. Once you have a at-fault accident that causes more than $500 in damage, a DUI conviction, or even a very speeding ticket, you should be grouped with high-risk individuals . This is the law. So accident forgiveness support are not available there.
Insurers cannot advertise their accident forgiveness options in California. In 2014, based in Boston Liberty Mutual Had to Pay Californians After an advertising campaign, $925,000 advances their accident forgiveness policy allowances.
Now that you know why accident forgiveness isn’t available in the “Golden State,” let’s talk about insurers offering accident forgiveness in other states.
Which Insurers Offer Accident Forgiveness?
According to We found this list in ExperianThese insurance companies are known to offer accident forgiveness riders:
- american family
- The Hartford
- Liberty Mutual
They are a good starting point for drivers looking for this particular support.
Earlier in this piece, we mentioned that some agents consider accident forgiveness to be a dirty marketing ploy. Let’s conclude our study of accident forgiveness riders by exploring that idea.
The Ethics of Accident Forgiveness: Is It a Slim insurance marketing ploy?
Maybe they are. Taken at face value, the accident pardon rider seems reasonable. Safe drivers can now choose to pay a little extra and rest easy knowing that their insurance rates won’t skyrocket after the fender-bender. It is highly appropriate as an opt-in rider, an added perk that one chooses after deliberate research.
However, accident forgiveness is not appropriate as built-in coverage on an insurer’s standard auto policy.
If an auto insurer were to include accident forgiveness on every good driver policy, they would be forcing all good drivers to pay a little extra for claims that might never happen.
In that sense, it is a way for insurers to increase premiums on drivers they know to be safe. These are the customers who should be paying the least for their policy!
And, just because a driver has a clean record doesn’t mean they are a safe driver. They may have been lucky and survived the catastrophe by now. But should any driver have the privilege of avoiding the increased premium after a serious wreck? Insurance premiums are not meant to be punitive, but rising prices can help rein in a young man after his first auto accident.
Ultimately, insurers want to do business with the safest drivers. And those drivers should always have the best rates.
Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of knews.uk and knews.uk does not assume any responsibility or liability for the same.