Accident forgiveness can be an excellent option on an auto insurance policy. A safe and careful driving history can eventually result in lower premiums but motorists may find that their insurer will apply a certain number of restrictions on the policy itself. There may also be limitations as to how accident forgiveness can be acquired.
Accident forgiveness is not issued as a standard feature even on comprehensive policies. Although some insurance companies offer different levels of accident forgiveness, drivers may find actually obtaining it a little different. The US market varies greatly to the UK market. Any motorist in the UK who completes a year of accident-free driving automatically qualifies for a premium reduction. This is called a no-claims bonus and actually operates in a similar way to accident forgiveness.
In the US, some drivers may have to wait up to five years before they qualify for accident forgiveness and they will need to be completely accident free within this period. Drivers of high-end vehicles might find that they qualify for accident forgiveness immediately although this isn’t always the case. Once accident forgiveness has been acquired, it can still be revoked in the event of any future accidents to protect the insurance carrier from any repetitions.
Although motorists in the UK receive a no-claims bonus free of charge, some US drivers are actually billed for accident forgiveness. This obviously reduces the bottom line saving on premiums a little, although charges for accident forgiveness inclusion won’t be as high as any eventual discounts.