There’s so much information out there on so many different subjects…who’s got the time to read it all? Not many, so don’t feel bad. You may have been hearing about a thing called Accident Forgiveness, let's explain what it is:

*Every state has different rules that apply, we are explaining the way it works in California. An insurance company that offers this will tell you if you have a property damage only accident your insurance rates will not go up. Normally you would see an approximate increase in your bill of 40% for over three years. Now this is only good for one accident and if there’s bodily injury involved the insurance companies cannot control you loosing the ‘Good Driver Discount’. So, yes they won’t put their own charge on your bill but loosing this discount will still increase your rates. Remember, accident forgiveness means for one property damage accident only.

Each company as its own rules as to who will get this or not, below is a guide to Accident Forgiveness requirements for several companies:

Progressive Ins: If you have a car insurance policy with Progressive for four years, and you remain accident free for three consecutive years, we won't raise your rates because of an accident that happens after this time — even if you're at fault. There's no charge for Accident Forgiveness, but keep in mind that it applies to the first accident only after the specified time frame.

GEICO: If you've been a customer for at least five years and haven't had an accident, you may qualify for accident forgiveness. * GEICO accident forgiveness eligibility is determined by your specific policy type, as well as your state laws and regulations. Guidelines vary according to state law.

Liberty Mutual: You must be accident-free for five years, and have not received a driving violation for the past three years. Accident Forgiveness coverage is subject to terms and conditions of Liberty Mutual’s underwriting guidelines, and varies by state.

State Farm: Not Available

21 Century: Not Available

Allstate Insurance: You can add accident forgiveness, ticket forgiveness, lower deductible rewards and a new safe driver bonus on to your California car insurance anytime. These new features come in two packages, The Gold and Platinum Plans, and there are no pre-qualifications necessary. There is a fee but remember, the new safe driver bonus will pay you back 5% of your premium every six months that you remain accident free.

One thing to point out on the Allstate policy, they will forgive you for a ticket and an accident, this is very unique but be aware the ‘Good Driver Discount’ mentioned earlier in this article will be lost with 2 points on your record.

Now, if you have an accident and are forgiven on your current policy please be aware, if you go to another company they will probably charge you for it. These new coverage’s are not transferable from one company to the next.

Also, not all insurance companies are created equal. When placing your coverage with a company it’s a good idea to go with someone well known. This can make a difference if you ever need them to defend you…it’s important to have a financially strong company on your side. There can be loop holes in that policy you will never get a chance to read and sometimes you pay for what you get! Don’t feel bad if you haven’t read that book called a policy, just go with a company you know and trust. Now, if you have an accident and are forgiven on your current policy be aware, if you go to another company they will probably charge you for it. These new coverages are not transferable from one company to the next.

Here are some coverage terms and their meanings to help when shopping for car insurance:

Bodily Injury Liability Coverage:

If people are injured in an accident that's your fault, Bodily Injury Liability coverage helps protect you from law suits that include the other party’s bills:

• Emergency aid at the scene
• Medical expenses for bodily injury
• Medical services for sickness or disease
• Compensation for loss of income
• Funeral expenses
• Legal defense fees and/or bail bonds for anyone listed on your policy
• Other expenses not listed here

Property Damage Liability Coverage:

If another driver's property is damaged in an accident that's your fault, Property Damage can help pay for their:

• Structural damage to homes, storefronts, etc.
• Repair or replacement costs for other stationary objects
• Vehicle repair or replacement costs

It can also help keep your assets safe in the event of a lawsuit resulting from a covered accident

Medical Costs:

This coverage helps pay for medical treatment for accident related injuries, no matter who's at fault. These costs may include hospital, doctor's visits, surgery, x-rays, EMT, ambulance fees and other similar expenses. This will cover you and your passengers or any other covered drivers during an accident.

Collision Coverage:

Helps protect your car in the event of an accident with another car or object. For example: if you car collides with:

• Other vehicles or
• Stationary objects such as a tree or streetlight
  

Collision helps pay for repairs or replacement up to the Actual Cash Value (ACV) of your car. Remember, the ACV amount and the amount you paid for the car is likely to be different due to age, depreciation, wear and tear and will most likely be subject to a deductible.

Comprehensive Coverage:

Offers coverage to protect your car in situations that don't necessarily involve other drivers or vehicles. For instance, if your car is damaged by:

• Storm or other natural disaster
• Vandalism and/or theft
• Passive object such as a tree falling on your car
• Broken window/windshield
• Damage due to a collision with an animal

Uninsured Motorist and Underinsured Motorist:

This very important low cost coverage helps pay for medical expenses and damage to your car caused by a driver who has no or little insurance.

• Bodily Injury Coverage - May pay medical expenses for you, your passengers or any family members who might be driver the car when caused by a uninsured driver
• Property Damage Coverage - pays for damages to your car caused by an uninsured or underinsured motorist driver. This coverage is not available in all states.

Towing and Labor Costs Coverage:

Want to keep moving, even if you're stranded? This option will help reimburse you for towing and other basic roadside assistant expenses.

Rental Reimbursement Coverage:

After an accident, you might be faced with some expenses you didn't expect. This option reimburses you for the cost of renting a car while yours is being repaired. This is will not pay in the event your car is in the shop for maintenance, only for covered losses.

Sound System Coverage:

If you've got a high end sound system you might want to consider this special coverage. In the event of your stereo or car being stolen this coverage will pay to replace your high valued stereo.

Please remember, not all insurance companies are created equal. When placing your coverage with a company it’s a good idea to go with someone well known. This can make a difference if you ever need them to defend you…it’s important to have a financially strong company on your side. There can be loop holes in that policy you will never get a chance to read and sometimes you pay for what you get! Don’t feel bad if you haven’t read that book called a policy, just go with a company you know and trust.

For more information, online quotes and resources please visit it us at AccidentForgivenessInsurance.com or call 866-614-3400