• Accident Forgiveness — What You Need to Know

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Are you considering adding accident forgiveness to your car insurance policy? Here at Lighthouse Insurance, we have seen that this added coverage can save people a whole lot of money in the event they get into an accident. We also know that there can be a lot of confusion around this added insurance endorsement. That’s why we’re answering frequently asked questions so you know exactly what accident forgiveness is all about.

 

What is Accident Forgiveness?

Accident Forgiveness is an additional coverage that can be added to your auto insurance policy to help avoid a rate increase following an at-fault accident.

 

Who is Eligible?

Accident Forgiveness is only available if you are an excellent driver with a clean driving record. For these reasons, you must have a minimum of six years driving experience and have a driving record that is free of accidents and moving violations.

 

What is the Cost?

For qualified drivers, adding Accident Forgiveness to their car insurance policy is not only a wise decision, it’s also an affordable one. On average, this endorsement costs drivers an additional $25 per month — that’s less than one dollar a day!

 

How does it work?

When it comes to auto insurance, insurance companies review your driving record and look at moving violations and any accidents to determine your insurance premium. Therefore, when you get into an accident your insurance premium can increase significantly. If you get into an accident but have the added Accident Forgiveness endorsement, while the accident still goes on your driving record, the insurance company agrees to forgive this accident and will not increase your premium. Once you use the endorsement, however, you can not use it again until your driving record completely clears. Since the accident is still on your driving record, it’s important to note that if you switch insurance companies, the accident will be calculated into the new insurance policy — meaning you could end up paying a higher premium with the new company.
No one ever plans to get into an accident, but being prepared in case one does occur can make all the difference. As an excellent driver, you can benefit from this added endorsement to help save money in the event of an at-fault accident. For more questions about Accident Forgiveness or to talk to a Lighthouse Insurance agent about adding this endorsement to your current auto policy, contact us today.