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Accident forgiveness is something that is sometimes part of vehicle insurance. It is not something that all insurance companies offer. There are many Canadian insurance companies offering vehicle insurance. It is good for those shopping for insurance. It also creates a competitive field for the various companies. To be competitive, they will each offer their incentives. These incentives, are by way of bonuses or discounts. Included in these might be the offering of accident forgiveness.

What is Accident Forgiveness Coverage?


Accident forgiveness when it comes to vehicle insurance is as the name applies. But there are rules and policies that apply to this. In the basic sense, it means the insurance company will forgive the first accident. An accident that an insured may have. It won’t matter who is at fault for the accident. Some of the terms may vary. It will depend on the insurance company offering this incentive.

Do You Need Accident Forgiveness?

Some individuals wonder whether they need accident forgiveness. It does add extra security. It helps to know that if one is in an accident the insurance company is not going to hold this against them. There are some that are not too concerned about this. For them, accident forgiveness is not something they put a lot of emphasis on.

There are some individuals that have accident forgiveness and have had a minor accident. They have then lost the benefit of having the accident forgiveness. Every insurance company will differ. They differ about what they will apply the accident forgiveness criteria too. In most cases it is applied to any accident provided it is the first one that the driver has had.

How Much Does Accident Forgiveness cost?


When determining whether accident forgiveness is beneficial or not the cost factor is important. Insurance shoppers want to know how much extra this is going to cost them. The answer will all depend on the particular insurance company.  Not every insurance company has this option available. Some that do will add an extra cost to the premiums for it. But there are other insurance companies that are offering it as part of their package. They do this without adding extra cost. Every individual has to consider whether this is a part of insurance that would be important to them. Once they make this decision, it plays a part into who they finally choose to provide insurance. For those where it is important to them will want to look for insurance companies that offer it. Plus they will want to find insurance companies that are not charging extra for this.

Insurance rates will vary. And each company will set their standards. Most find that accident forgiveness is not expensive. It’s estimated that the average cost would be between $35-$50 for the term of the policy. But keep in mind that this can vary from one insurance company to another.

Is Accident Forgiveness Automatic?

Accident forgiveness is an option. It is not an automatic inclusion in the insurance policies. But, there are some insurance companies that have included this. It is one of their perks for their insurance products. Those buying insurance should not jump to conclusions.  They should not assume that they will have accident forgiveness insurance. It is a question that should be asked of the insurance company.

Does Accident Forgiveness Apply to Every Accident?

Every insurance company has their policy. Policies for the application of the accident forgiveness could vary. For this reason, it is important to read the insurance policy carefully.

It will outline exactly what the accident forgiveness will cover. Also, what if any restrictions apply to it. There could be time limitations on it. It might be that the insurance company will want the insured to be a client for a specific number of years. Also, it would be before the accident forgiveness would kick in.

Will I Be Able to Get Accident Again if  I Have Used it Once?

In most cases, the accident forgiveness benefit is only applicable once for the insured. Again some insurance companies may be more lenient with this. For example, they may set the period of 6 to 10 years to be accident-free. It would be before one could get the accident forgiveness coverage again. Some companies only allow for this during the entire time the client does business with them.

Will Another Insurance Company Give Me Accident Forgiveness?

There are many different insurance companies that are now offering accident forgiveness. Some individuals wonder what happens if they have had an accident. An accident that took place under one insurance company. What happens if they move on to another insurance company? If they do will that new Company give them accident forgiveness? There are going to be a lot of variables about this.

Even though the accident forgiveness may kick in, there is still going to be a record of the accident. It is going to appear on the driver history. When a driver goes to a new insurance company, this history is going to be under review. The accident is going to appear on the record. It may affect the option of accident forgiveness. If the insurance company charges for this they may not offer it as an option. It may not be available to the new client that is in this circumstance. Accident forgiveness is not transferable from one company to another. It is because this is an incentive they each offer on their own. It is not mandatory coverage.

Looking at All the Incentives


Accident forgiveness is something worth considering. There are other incentives that insurance companies offer as well. It is important to look at all the options that may be available to them. Those that are shopping for insurance should do this.

Combining this with the action of comparing insurance quotes is beneficial. It will often lead to the insured getting a premium that they are happy with. Plus, they may get the extra coverage for accident forgiveness as part of the insurance coverage.

About the Author: Ashley Miller

Ashley is an insurance content professional and very knowledgeable on all related subjects. Ashley has over 12 years of insurance content writing experience working with various insurance companies throughout her career.