The Facts About Accident Forgiveness and Your Car Insurance

So. You've been in an accident. Hey, it happens to almost all of us sooner or later. All it takes is a second or two of inattention, and the next thing you know your car's totaled and you're standing there thinking horrible thoughts about what this is going to do to your car insurance rates. Before you panic and decide to devote yourself to hoofing it for the rest of your life, take some time to talk to your insurance agent about accident forgiveness.

It happens all the time - a driver with an otherwise flawless driving record happens to be in the wrong place at the wrong time in the middle of the wrong conditions, and the next thing you know you're staring at a fender bender the likes of which you've never seen before-or the scrunched remains of what used to be your car. Are you all right? That's the most important thing. If you're all right, the rest is just details-and everyone knows you can always work out the details sooner or later.

Do you know how many car insurance companies are doing business in the U.S. right now? Probably not! The answer is, a lot. Where there are lots of insurance providers there's lots of competition for customers, and where there's competition for customers there's a chance for drivers to get a great deal on their insurance coverage-or in this case, to save big time after they've been in an accident.

The average car insurance company will send your rates flying an average of 40% after you've been in one accident (assuming the accident was your fault and the other driver's insurer isn't picking up the tab). One accident! Even when you've been a safe driver and a loyal customer for years! Someone finally jumped on the idea that this wasn't necessarily fair, and accident forgiveness was born.

Some insurance companies consider accident forgiveness to be a standard part of their car insurance policies; others are going to make you pay a little extra for it. Either way, accident forgiveness is a privilege reserved for drivers who have a five year good driving record and happen to find themselves in an accident. Rather than cranking the knob and sending their car insurance rates soaring, insurers will either "forgive" the accident (which means it will have no impact whatsoever on the cost of your insurance) or they'll slap you on the wrist with a 2-10% rate increase rather than 40%.

Either way, it beats paying an extra $400 or more per year for your insurance coverage!

If you've been in an accident, pick up the phone and call your insurance company to find out if you have accident forgiveness. If you haven't been in an accident, pick up the phone and find out anyway! If you have to pay to add it on you need to know now, not when it's too late.