Accident Forgiveness

Many insurance companies throughout Canada and the US use the term “Accident Forgiveness” to attract new business. Be careful, as it does not necessarily mean that your insurance company will forgive you for having an accident.

Many insurance companies that offer accident forgiveness drop the driver’s “preferred” rating, and increase their insurance rate.

To determine what your company means when they say that they offer accident forgiveness, ask your insurance rep these questions:

1.    Will the accident go on my claims record?

2.    Will my rate increase on renewal?

3.    Will my preferred rating drop?

If “yes” is the answer to these questions, get your rep to point out where the forgiveness is.

Rate Alert: Insurance companies can change their rates up to twice a year. InsuranceHotline.com offers a Rate Alert service that calculates your insurance rate every few months, keeping you informed of better pricing when it becomes available.