Accident forgiveness is a term used by some insurance companies to offer their customers the option to keep the same pre-accident rates that they enjoyed. The insurance companies are allowing customers to maintain the same insurance rates by not counting an accident against the customer.
While this all sounds great, states like Massachusetts are warning drivers to be aware of all charges that they are paying to be able to keep their rates the same.
According to the Department of Consumer Affairs and Business Regulations in the state of Massachusetts, insurance companies may be charging an annual fee for their accident forgiveness program.
The state goes on to say that some insurance companies may make you wait to be eligible for accident forgiveness and that even though the accident is not considered in your current rates, the accident stays on your record with the insurance company.
If you are offered this program, you need to make sure that you are aware of any additional costs that are related to having accident forgiveness.
If you are required to pay an extra annual fee to have this option as part of you standard insurance, this may not be a good deal. Likewise, if the cost of your premium is higher because the insurance company offers this as a rider to your existing policy, then again, it may not be a good deal for you.
Along with additional costs, there may be many additional customer criteria that you need to meet in order to participate in the program.
Some companies may require you to be a good driver and go a long time without any tickets. Other companies may require that you be a current customer before offering you a safe driver or accident forgiveness program.
Each company has different policies regarding the awarding of accident forgiveness programs and if you are interested in this, when you do your auto insurance comparisons, you can ask the company if they provide this option.