Automotive

At fault. First time forgiveness insurance

  • Last Updated:
  • May 19th, 2017 6:12 pm
[OP]
Sr. Member
Oct 6, 2014
898 posts
32 upvotes
Toronto, ON

At fault. First time forgiveness insurance

I encountered a minor accident this morning, and I am at fault.

This is my first time, and my insurance policy offers first time accident forgiveness

I am wondering if there is any catch down the road?

I am with Chieftain Insurance

Thanks.
27 replies
Deal Expert
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Jul 30, 2007
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if you have this coverage and you pay the premium for it, then this is your "get out of jail" card. You should not see any hefty premium increase next renewal.
Member
Dec 16, 2008
420 posts
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Richmond Hill
As long as you stay with your current provider.
Deal Expert
Mar 25, 2005
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1. If you change insurers within the next 6 years, expect to be rated for the accident.
2. If you are at fault again within the next 6 years, expect to be rated for both.
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Apr 18, 2009
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kooroshkabir wrote:
Mar 22nd, 2017 3:57 pm
As long as you stay with your current provider.
^this

your accident record will still be visible to other insurers if you choose to change insurance companies. so while you premium wont increase with your current provider because of this accident, the "catch" will be that you are pretty much locked to them for the next 6+ years since the other companies will give you a hard time if they see your accident record and use that an excuse to jack up your premium.

if you are the type of person who likes to switch providers every year at renewal (to get the lowest rates the market offers), you will likely not have that liberty anymore.

also, the other "catch" that i am aware of is that i believe you still have to continue to pay that "accident forgiveness" portion of your premium with your current provider even after you had your accident. again i am not 100% sure and i can be wrong on this, better check on your policy first. i believe this is the case with mine.
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Nov 22, 2015
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chroma_cg wrote:
Mar 22nd, 2017 4:15 pm
^this

your accident record will still be visible to other insurers if you choose to change insurance companies. so while you premium wont increase with your current provider because of this accident, the "catch" will be that you are pretty much locked to them for the next 6+ years since the other companies will give you a hard time if they see your accident record and use that an excuse to jack up your premium.

if you are the type of person who likes to switch providers every year at renewal (to get the lowest rates the market offers), you will likely not have that liberty anymore.

also, the other "catch" that i am aware of is that i believe you still have to continue to pay that "accident forgiveness" portion of your premium with your current provider even after you had your accident. again i am not 100% sure and i can be wrong on this, better check on your policy first. i believe this is the case with mine.
Is this only if you're fully at fault? I switched insurers after an accident that was covered under accident forgiveness, and the new insurer was unable to see that claim history at all. Police deemed no-one at fault, insurance said it was my fault; car was written off, cheque cut for $19K (full replacement value).
[OP]
Sr. Member
Oct 6, 2014
898 posts
32 upvotes
Toronto, ON
Chieftain insurance is month to month, so I don't think there is ever a 'renewal', it just keeps going.

I got an estimate from the garage, and they said its going to be cost me approx. $1500 - $2000 :(
Newbie
Feb 7, 2017
5 posts
1 upvote
letmesee wrote:
Mar 22nd, 2017 4:56 pm
Chieftain insurance is month to month, so I don't think there is ever a 'renewal', it just keeps going.

I got an estimate from the garage, and they said its going to be cost me approx. $1500 - $2000 :(
Your renewal will fall under whatever month you started your insurance. I pay month to month my renewal is in September in which they review your policy and make any changes to coverage or pricing
[OP]
Sr. Member
Oct 6, 2014
898 posts
32 upvotes
Toronto, ON
If the premium goes up, is it based on the $ claimed, or based on the # of times claimed?

$1500 - $2000 for dmg repair doesn't seem to be alot, does it?

Thanks.
[OP]
Sr. Member
Oct 6, 2014
898 posts
32 upvotes
Toronto, ON
Update: Not sure if the other party already reported to the collision centre. If she already did, and want to settle it privately, would that still affect my insurance premium? Thanks.
Deal Addict
Sep 5, 2009
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I have first accident forgiveness with Desjardins and I used it 5 years ago. My premiums did not go up, in fact they steadily went down like the accident never happened.
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Sr. Member
Aug 10, 2013
962 posts
397 upvotes
Toronto, Ontario
I was told by belair that accident forgiveness is only granted up until a certain dollar value. Like you in the midst of an accident and think, Hmm, maybe i shouldnt hit my headlight cause that might put me over the threshold.
Typical car and law enforcement enthusiast
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Aug 3, 2014
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letmesee wrote:
Mar 22nd, 2017 7:03 pm
Update: Not sure if the other party already reported to the collision centre. If she already did, and want to settle it privately, would that still affect my insurance premium? Thanks.
If your able to contact the other driver and settle it privately then it will not go on your insurance record as a claim.
Providing that the other driver hasn't already called their insurance.

Reporting to police has nothing with reporting to insurance.
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Mar 25, 2005
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letmesee wrote:
Mar 22nd, 2017 7:03 pm
Update: Not sure if the other party already reported to the collision centre. If she already did, and want to settle it privately, would that still affect my insurance premium? Thanks.
You are rated on the number of claims, so a $3k claim is the same as a $100k claim.

If you settle privately and no claim is filed, it will not have any affect on your insurance. For $1.5-2k, and property damage only, settling privately is not a terrible idea. Of course there is also the option to file a claim and pay out personally under the new insurance rules, up to $2k.

Some collision centers will forward the details to the insurer. It is not clear when or where exactly this happens.
[OP]
Sr. Member
Oct 6, 2014
898 posts
32 upvotes
Toronto, ON
Kasakato wrote:
Mar 22nd, 2017 9:41 pm
You are rated on the number of claims, so a $3k claim is the same as a $100k claim.

If you settle privately and no claim is filed, it will not have any affect on your insurance. For $1.5-2k, and property damage only, settling privately is not a terrible idea. Of course there is also the option to file a claim and pay out personally under the new insurance rules, up to $2k.

Some collision centers will forward the details to the insurer. It is not clear when or where exactly this happens.
Thanks for the great info.

I am confused, whats the benefit of submitting a claim then pay it out myself under $2k?

Thanks

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