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What is Meant by Accident Forgiveness on an Insurance Policy?
January 3, 2021
Insurance may forgive, yet hope that you forget you might be paying extra for it.
“Accident Forgiveness” rating programs vary by the insurance company involved and the jurisdiction (state) involved.
In most circumstances, a policy endorsed to include “accident forgiveness” will forgo the addition of a normal “surcharge” following an “at-fault” accident over a certain dollar threshold.
However, in a few instances, accident forgiveness may include “not-at-fault” incidents and not include a threshold.
It might also be interesting to know that some insurance companies who make the biggest deal about their Accident Forgiveness Programs actually charge an additional premium for that benefit. Also, those same companies may not have the most attractive “forgiveness” factors included.
Often of some benefit to the insured, Accident Forgiveness programs does not mean your policy won’t go up in cost. Neither does it mean that additional accidents won’t result in a premium increase.
If Accident Forgiveness is a determining factor for you, check with your agent about the specific details of how that program applies before making a decision. A couple of good questions to ask would be:
- How much (if anything) does the benefit cost to add to the policy?
- In what situations would the “forgiveness” apply?
“Accident Forgiveness” rating programs vary by the insurance company involved and the jurisdiction (state) involved. In most circumstances, a policy endorsed to include “accident forgiveness” will forgo the addition of a normal “surcharge” following an “at-fault” accident over a certain dollar threshold.
As mentioned above in some instances, accident forgiveness may include “not-at-fault” incidents and not include a threshold.
It might also be interesting to know that some insurance companies who make the biggest deal about their Accident Forgiveness Programs actually charge an additional premium for that benefit. Because of that, those same companies may not have the most attractive “forgiveness” factors included.
Accident Forgiveness programs can be of benefit to those receiving them. However, that does not mean your policy won’t go up in cost. Neither does it mean that additional accidents won’t result in a premium increase.
If Accident Forgiveness is a determining factor for you, check with your agent about the specific details of how that program applies before making a decision. A couple of good questions to ask would be:
- How much (if anything) does the benefit cost to add to the policy?
- In what situations would the “forgiveness” apply?
Have additional questions about your car insurance? We LOVE to help. Please feel welcome to call us at 607-382-1235.
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“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
OK. Admittedly, this strategy doesn't benefit everyone, but it can be very beneficial for those it does. You may have unique home or auto insurance needs that prevent you from bundling with the same company. Alternatively… you might have a better rate without the bundle discount by splitting up your insurance between multiple carriers.
