Some insurance companies are offering “accident forgiveness” these days. This term typically refers to “forgiving” an accident so it does not increase the premiums on your policy. But is this always the best and most affordable option?
According to the National Association of Insurance Commissioners, you may be paying more on your premiums just by choosing the accident forgiveness option. If it is only offered as an add-on option to your policy, the cost could be higher than the increase in premiums following an accident. The only way it is a more affordable service is if it comes as a standard part of the insurance policy.
Many insurance providers that offer the accident forgiveness option only offer it to drivers who have either been with the company for many years or if they have a clean driving record. Some providers may even offer it to new policyholders as a way to lure them to the company from their current insurance company.
Do you have the accident forgiveness option on the insurance for your VW cars? If so, now may be a great time to reevaluate your policy and calculate the costs of your premiums. You my just be paying more than you need to for something that you may never use.
