Q: How does an auto insurance accident forgiveness program work? I was involved in a minor accident with less than five hundred dollars in damage and my current premiums went up almost thirty percent. Any advice would be appreciated.
A: There are currently two differing types of accident forgiveness programs that we are aware of. The first is — if you are involved in a first accident and the total payout is less than $750 dollars, they will not increase your premium. This is a one time deal though so be aware that your rate will increase if you are involved in a second accident.
The second accident forgiveness program is probably the one you have seen advertised on television. In this case any accident is forgiven in the sense that your premium will not increase. The catch is you have had to have a policy for the previous nine years with no accidents. Obviously this program is limited to one accident as well.
There are several companies that offer accident forgiveness programs. Feel free to shop around and ask for specifics when inquiring about accident forgiveness. Accident forgiveness programs typically have many stipulations that must be met for the accident to be truly forgiven.
Last but not least, we strongly encourage you to get online and compare quotes from several different providers. Even if you feel you are currently paying a low rate for your automobile coverage, you might be surprised at just how much money you could be saving with another provider.
Source by David Ackland