How Forgiving is Accident Forgiveness?

I called an insurance company the other day.  A well known one.  One that you and I see on TV all the time.  I asked them about their “accident forgiveness” program.  As you might guess, accident forgiveness is offered by car insurance companies to get you to switch (or stay), claiming that if you have an accident that’s your fault, you’ll be forgiven (i.e. no rate increase).  However, this particular company did not advertise two big things that I found interesting.  (1) They can still use the accident to cancel your policy and (2) they charge a premium for this accident forgiveness feature.  In other words, if you chose to leave the accident forgiveness off, your rate would be lower.

Here’s my take.  If you’re a good driver and the insurance company wants to charge you an extra premium for accident forgiveness, leave it off, save the money, and take your chances.  It’s my philosophy that insurance is used to cover the catastrophic things.  So why buy “insurance” to prevent your insurance from going up?

Just my opinion.  You can leave your comments on this page or visit my Facebook Page.  Just remember that not all accident-forgiveness plans are created the same.  Ask the important questions.