Insurance companies are changing...yes, changing! The slow to move industry is trying to reinvent itself with new options like Accident Forgiveness and Ticket Forgiveness. Allstate Insurance started the move and coined these names but other companies are quick to follow like Progressive, Hartford, GEICO, etc. but some companies have restrictions (not available in all states), qualifications and costs involved. Also, most companies only offer the Accident Forgiveness part - Allstate Insurance does offer both.
Car insurance in California has not offered new options like this since proposition 103 passed in 1988 deeming all insurance companies have to follow the same rules of the 'Good Driver Discount'. Before prop 103, California was considered an "open competition" state and the companies could offer all sorts of discounts and/or surcharges. The general rules of this state mandated discount are as follows...any one that is at fault for an accident that involves injury or gets more than one point on his or hers driving record can no longer qualify for the discount. The rule has not gone away so you may ask, "How do they get around this with accident
forgiveness"? Good Question! Here's how the new options that insurance companies are offering work:
They waive their surcharge for a property damage accident only. This means if the accident involves any injuries than you will see an increase on your premium. Why? Because the company has no control over the 'Good Driver Discount' and this will be removed. Now, your increase will be a lot less than if you didn't have the Accident Forgiveness due to the insurance company is not surcharging you anymore.
If you get one minor ticket your rates will not go up with the Ticket Forgiveness part. Remember, this is for only one ticket for three years so if you get another one - go to traffic school to avoid the charge. And if traffic school is not an option this second ticket will now remove your 'Good Driver Discount'!Every option has rules and restrictions so it's good to be aware of them. This is where having an educated agent helps the most!
When shopping for car insurance look at the companies options. Having accident forgiveness can save you thousands even with the above rules. Studies have shown that having one property damage accident can cost the average California consumer $1800 over a three year period and for one ticket $1200 (cost vary). If having you an extra $5 a month and you drive over 10 miles one way to work, you might want to consider this.
Yes, this is buying insurance on your insurance rate. It might not be for everyone but for commuters, young drivers and commercial drivers that don't have traffic school as an option it really makes sense!
If you'd like more information or get a quote call us at 866-614-3400 Loreen
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