What is accident forgiveness car insurance coverage?

Reader question:

What is accident forgiveness coverage, and should I get it?


Only for free.

Some companies offer you accident forgiveness for a little extra on your premium. These deals can differ from company to company, offering you a waiver on your first accident for a slightly higher rate, or even offering you multiple forgiven accidents after a certain amount of tenure, also for a higher price. For the most part, these policies are wastes of money and just tricking you into paying for something that you can get for free anywhere else.

Most companies will offer forgiveness of your first accident for free. It’s true that there are some companies that will raise your premium even after only one accident, but since there are so many that don’t do this, you can save yourself a lot of money just by shopping around and finding the kind of company that offers you good rates and first accident forgiveness for free.

Then there are the multiple accidents. You won’t find many, if any, companies that will offer you forgiveness for multiple accidents with no strings attached, but you can still find companies that will offer you forgiveness without asking that you pay extra for it, and the strings they attach to the deal are pretty reasonable. Usually you’re required to be with the company for a certain amount of time, or go accident-free for a certain amount of time, in order to qualify for this forgiveness.


Fashun Guadarrama.

Posted in: Auto Insurance

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  • Dynes

    Insurance is based off the law of large #’s. Everyone puts in some money for the few people that may place a claim. I understand you may have a great driving record and don’t plan to have an accident. But that’s the meaning of an accident, no one plans to have one.

    I am in the United States so I am not sure if the UK operates the same way, but here its illegal to drive without insurance. If your parents are alive I don’t think they would want to risk their house.

    But if you own your parents house why don’t you see about getting a loan against the house to help with the insurance bills. As a side note there are insurance companies that do pay dividends if they made a profit, but none that i have ever heard of would refund you back a set amount if you were accident free.

  • Sarah

    I’m still enjoying reading through your blog. I’ve found a lot of useful info from your first few posts already. :)