The accident forgiveness endorsement is a huge part of protecting your low car insurance rates. That’s because an at-fault accident can have devastating effects on your rates and the accident forgiveness endorsement protects you from that.
What is an accident forgiveness endorsement?
Generally, with an accident forgiveness endorsement, your car insurance rates will not increase as a direct result of your first at-fault accident.
A few things with this – The endorsement only protects your rates for as long as you stay with the same insurance company. The accident forgiveness endorsement does not carry over to a new insurance company. Also, the endorsement lasts only while your car insurance is continuous. Most insurance companies will not honour the accident forgiveness if there is a lapse of coverage. So, for example, if you decide to cancel your car insurance while you travel for a few months, your accident forgiveness will no longer be honoured when you come back and set up a new insurance policy.
How do i get the endorsement on my car insurance policy?
First off, you have to qualify for the endorsement before it can be added to your car insurance policy.
With most car insurance companies in Ontario, you have to first be six years accident-free to qualify. Some insurance companies, like Economical Insurance, automatically provide the coverage on new policies or at renewal when you qualify. With other companies, like Aviva or Wawanesa, the endorsement has to be added manually.
Talk to your insurance broker to see if you qualify and then ask them to add the endorsement. The endorsement usually costs around $6-$7 per month.
If you call me for a car insurance quote, I’ll ask if you want accident forgiveness included, as long as you qualify for the coverage.