Car accidents cause insurance companies a lot of money, and as a motorist, it makes sense that they will pass on this cost to you in the form of increased rates. Fortunately, most insurance companies have accident forgiveness programs to reduce this burden for their clients. Such a program enables your insurance company to "forgive" you one accident case so that it doesn't affect your rates. Here are four ways in which you may enjoy such a program:
Change Your Insurance Carrier
Insurance companies, just like other businesses, are constantly looking for new clients. Most carriers offer various perks and discounts to potential clients to convince them not to take their business elsewhere. One of these perks may be the offer of accident forgiveness. Therefore, if you want accident forgiveness, talk to your insurance agent to connect you to carriers who offer it to new customers. Of course, this only makes sense if you were planning to switch carriers or if you are buying your first coverage; switching for the sake of accident forgiveness may not make financial sense.
Stay With the Same Insurance Carrier for a Long Time
In addition to hunting for new clients, insurance companies also don't want to lose the ones they already have. Therefore, there are also perks and discounts for customers who have been with the same carrier for a long time. Again, these benefits may include an offer of accident forgiveness after staying with the same carrier for a reasonably long time.
Maintain an Impeccable Driving History
Insurance companies want to make profits, and one method of increasing profit is to limit the expenses. Accident claims represent some of the highest expenses auto insurance companies, so it makes sense that they encourage drivers not to make claims (by not causing accidents). Offering accident forgiveness is one way of encouraging drivers to maintain clean driving histories. Therefore, you may be offered accident forgiveness for your next accident if you maintain a clean driving history for a given time.
Buy the Program
Lastly, you may also be able to buy accident forgiveness from your auto insurance carrier. This is possible because many auto insurance carriers view accident forgiveness as a product. This way they charge you a small premium on top of your regular rates so that your next accident doesn't impact your rates. However, the product may not be available to all drivers; it's usually offered only to low-risk drivers.
Contact a company like Oliveira Insurance Agency for more information and assistance.