Accident Forgiveness is a feature or benefit offered by an insurance company in an auto insurance policy that protects the policyholder’s insurance rate from increasing after their first at-fault accident. This means that even if the policyholder is responsible for an accident, their premium will not go up due to that specific incident.
It’s important to note that accident forgiveness is not automatically included in all auto insurance policies. It is often offered as an optional add-on, as a reward for being a safe driver and maintaining a clean driving record for a certain period, or a combination of both. It is important to remember that not every insurance company offers an accident forgiveness insurance policy, but how it works can vary from one insurer to another.
However, there are certain conditions and limitations associated with accident forgiveness. For instance, it typically only applies to the policyholder’s first at-fault accident. If the policyholder is involved in subsequent at-fault accidents, their premium may increase. Additionally, accident forgiveness does not prevent other potential consequences of an at-fault accident, such as legal penalties or points on the policyholder’s driving record.
Therefore, it’s crucial for policyholders to read their policy documents carefully or consult with their insurance agent to understand the terms and conditions of accident forgiveness.