If you have a spotless driving record, chances are you’re already reaping the rewards through lower insurance premiums. However, accidents can happen to even the most careful drivers. After years of claims-free driving, the thought of a potential increase in your premiums caused by your first collision can be stressful. This is where accident forgiveness coverage can offer peace of mind.
What is accident forgiveness?
Accident forgiveness is insurance coverage that protects drivers from an increase to their car insurance rate after their first at-fault or partially at-fault collision. Your insurer essentially “forgives” your first accident, so long as it was not a major driving offence. This means that when your insurance policy renews, your premiums won’t be impacted due to the collision.
What are the benefits of accident forgiveness?
Some of the main benefits of having accident forgiveness coverage include the following:
Who is eligible for accident forgiveness?
Eligibility requirements will vary depending on your insurance provider. Typically, this coverage is reserved for claims-free drivers with a clean driving record to reward them for years of safe driving.
Remember that collisions (even if “forgiven”) still appear on your driving record. Even if you switch insurance providers, you will likely be ineligible for accident forgiveness coverage if you’ve already been involved in an at-fault collision.
Other standard eligibility requirements and limitations include the following:
What is not covered by accident forgiveness?
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Driving record. Accident forgiveness won’t erase the collision from your driving record. If you switch insurance providers, your new insurer will still factor in your “forgiven” collision when calculating your rate and charge you higher premiums as an at-fault driver. Accident forgiveness also does not protect you from being charged or receiving demerit points due to the collision.
How do I get accident forgiveness?
Some insurance providers offer accident forgiveness as a standard part of their policy, while others provide this coverage as an optional add-on.
If you’re a current OTIP car insurance policyholder, contact us at 1-833-615-9329 to review your policy and discuss additional coverage, such as our Worry-Free Bundle. If you’re shopping for car insurance, call us at 1-833-494-0085 for a free quote.