Accident forgiveness coverage and your car insurance

Accident forgiveness coverage and your car insurance

If you've got a clean driving record you may worry that an accident of any kind will increase your car insurance premiums—but with accident forgiveness coverage that is not necessarily the case.

What is accident forgiveness coverage?

Accident forgiveness coverage is an optional coverage that protects you in the event you are involved in a collision/accident where you are found to be at fault. As soon as you're in an accident where you are found to be at-fault, even partially, you no longer qualify for accident forgiveness coverage.

This coverage is an insurer's way of "forgiving" you for your first at-fault collision in an effort to prevent your premiums from increasing upon renewal. With six years of clean driving under your belt, many insurers consider the premiums you've already paid will help cover the costs associated with the collision.

Who qualifies for accident forgiveness insurance?

Though insurers may determine eligibility differently, generally speaking this type of coverage is available to drivers that have been licensed and accident free for at least six years. This includes having no at-fault or partially-at-fault accidents on your record.

Do all insurers offer accident forgiveness insurance?

No. If accident forgiveness coverage is important to you, talk to your OTIP insurance broker today about finding a policy that provides this coverage—or about adding it to your policy - by calling 1-866-523-4111.
Related: Benefits of using an insurance broker

The fine print

Here are some additional things you need to know about accident forgiveness coverage:

  • This policy is typically a one-time offer. If you decide to switch insurance providers, the policy may not follow you.
  • The coverage is extended to anyone who drives your vehicle. If you lend your vehicle to someone and they get in an accident you will likely lose this coverage, as it's your policy that will be affected.
  • The guidelines above are merely guidelines. Remember that each insurance provider is different; so read your policy to ensure that you understand the benefits and limitations of your accident forgiveness coverage.

If you have any questions about accident forgiveness coverage, give us a call at 1-866-523-4111 today. Also, be sure to check out our blog for more articles answering your auto insurance questions.