Accident forgiveness is when your insurer does not increase the premium after a loss is paid out.
Bow Valley Insurance of Calgary offers vehicle insurance from as many as several nationally recognised insurers. Most of these companies offer optional accident forgiveness coverage subject to meeting certain underwriting criteria. Compared to a rate increase following your first accident, forgiveness coverage can be relatively inexpensive in the long term.
Do remember that an accident forgiven is not an accident forgotten. For any subsequent accidents, the premium is normally adjusted.
Typically, you will find it difficult, if not impossible, to acquire the accident forgiveness feature if:
- You’ve had an accident, no matter how minor, for which you were at fault, in the last six or so years.
- You have a very brief driving record, or a lengthy one featuring multiple accidents, even if you haven’t had one recently.
- Have racked up driving infractions, criminal convictions related to driving, or have had your licence suspended.
- If you have a spouse or family member on your policy who could be considered the primary driver of one of your vehicles. In other words, you may be able to cover your own primary vehicle with an accident forgiveness feature, but not your accident-prone husband’s car for which he is the primary driver.
Accident Forgiveness: Is it Worth it?
Where the premium math gets difficult is when you’re a driver who has a very lengthy and accident free driving record. You’d have near certain eligibility for accident forgiveness coverage, but the question would be whether it is worth the premium.
If you are one of those defensive drivers who knows how to avoid the most common types of vehicular accidents, according to governmental statistics, you already qualify for most companies’ lowest rates. This is even more true if you have chosen a vehicle with an eye towards its safety and crash survivability ratings, which also isn’t too exotic as regards repairs, and/or a higher theft risk. As we are fond of stating, there is more than a good driving alone which factors into obtaining the lowest vehicle insurance premiums.
A safe driver, with a lengthy accident free record, and driving the right vehicle, is an attractive customer to any insurer. In fact, you might be able to save enough money by letting us shop the market using the expertise of our insurance brokers at Bow Valley Insurance of Calgary, come renewal time, that you would make any increased premium for accident forgiveness a wash.
As always, these examples are generic in nature and not promises of accident forgiveness coverage generally.
Contact Bow Valley Insurance of Calgary
Navigating the insurance market by yourself is a daunting proposition. Where once it could be said that there wasn’t enough information available, these days it can seem like there is too much. The friendly and experienced independent brokers at Bow Valley Insurance of Calgary can walk you through what accounts for the difference between your multiple free quotes for automobile insurance. Let our decades of experience work for you.