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Accidents happen, and often involve drivers with squeaky clean driving records. But should a single incident after years of clean driving negatively impact your car insurance quote? Most would agree that it shouldn’t. This is why many insurers offer accident forgiveness to their policyholders to minimize the impact of an incident.
The best of us make mistakes from time to time, and we all deserve to be forgiven, even if it was not your fault. According to a Toronto Star report there are 160,000 car accidents happening in Canada per year. Many drivers feel safer knowing they have an extra layer of protection.
Accident forgiveness means your insurer will not increase your rates after your first at-fault accident. Auto insurance with this add-on is increasingly common today. It is a feature that is offered by many insurers across the country. It is exactly as it sounds – your insurer will forgive you for the first incident that is your fault. But there are limits and regulations around it. Accident forgiveness is a feature that protects your driving record and your insurance costs. If you are at-fault, your premiums will not increase if you have it. Never assume that it is included with your policy. It also has its own cost and needs to be added. Keep in mind, if you are involved in an incident, you may still have to pay your insurance deductible for repairs to your vehicle.
Many insurers offer accident forgiveness. How it is offered, and the specific details will vary. For some, it comes standard; and for others, it is an additional add-on or an href="https://www.thinkinsure.ca/insurance-help-centre/insurance-endorsements.html">endorsement. Many insurers offer this accident forgiveness as part of their standard policies. It is often available to drivers who have clean driving records. Accident forgiveness is offered by insurers as additional protection. These packages can be purchased and go above and beyond what is covered in standard auto insurance. Not all drivers qualify for accident forgiveness. It is often reserved for drivers who have a clean driving record. It is a way for insurers to reward drivers who are claims-free. If you have a poor driving record or have been in multiple accidents, you cannot switch insurers to get it. If this were the case, drivers would switch providers every time they got into a mishap.
Here are some of the eligibility requirements you may need to meet to qualify for adding the protection. Companies that offer it may require :
There are many benefits to having accident forgiveness including :
If you have a clean driving record, you likely already have good rates. It may be worth it to get it to protect yourself in the event of causing an incident. New regulations about accidents and premium increases have made many drivers second guess the need for additional protection. The Financial Services Commission of Ontario explains :
Therefore, it is worthwhile only in the event of at-fault incidents involving significant damage – something to think about when considering before adding this endorsement to your Toronto car insurance. Accident forgiveness does have limitations and conditions. Each company has a different set of rules for how it is governed. It’s important to read the fine print and understand the protection it provides.
Some of the common constraints include :
You can expect to pay anywhere from $60 to $90 or more per vehicle. Accident forgiveness is not available through all insurers. Contact us today to see how much it will cost.
Your policy will state whether you have it. If you are still unsure you have it, contact your insurance advisor for clarification.
It depends on the insurer. Some will only forgive your first at-fault accident. Others may reset your accident forgiveness after three or more years of accident and claims free driving. Even if you switch providers, they will re-evaluate your record and ask how many years you have been incident free.
No. Accident forgiveness only provides coverage for your first at fault accident. It does not protect you from insurance increases related to speeding tickets or any other type of driving convictions.
Accident forgiveness can give you a break when you make your first mistake behind the wheel. Not sure if you have it? Want to learn more? We are happy to help you. Contact us today toll-free 1-855-550-5515 to learn more.
Do You Have Accident Forgiveness?
Feb 22, 2021
What You Need To Know About Accident Forgiveness
What Is Accident Forgiveness?
How Does Accident Forgiveness Work?
What Companies Offer Auto Insurance With Accident Forgiveness In Ontario?
Built-in
Endorsement
Do All Drivers Qualify For Accident Forgiveness?
What Are The Benefits Of Having Accident Forgiveness Insurance?
Is Accident Forgiveness Worth it?
Insurers can no longer use a minor at-fault accident that occurs on or after June 1, 2016 meeting certain criteria to increase your premiums. The criteria include that no payment has been made by any insurer, that there are no injuries and that damages to each car and property were less than $2,000 per car and were paid by the at-fault driver. This provision is limited to one minor accident every three years.
What Is Not Covered By Accident Forgiveness?
Accident Forgiveness FAQs
Have Questions About Accident Forgiveness Coverage?
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