Automotive

Is "First Accident Forgiveness" Important?

  • Last Updated:
  • Jun 3rd, 2011 1:31 pm
Sr. Member
Aug 29, 2005
810 posts
338 upvotes

Is "First Accident Forgiveness" Important?

As I said in another post, my wife and I have a 2002 CIVIC. We haven't had any accident for 9 years.

I am currently with John's. They increased my premium around 40-50% from 140 something to around 190 in 5 years. My current policy will expire on July 1st. I was shopping around. Smartcoverage gave me around $148 a month. I will save around 40 bucks a month, 480 bucks a year. So I already agreed to go with Smartcoverage on the phone today. However, Smartcoverage doesn't have "First Accident Forgiveness" while John's offers this feature. When I told my wife this evening, she doesn't feel comfortable with that.

Do you guys think the "First Accident Forgiveness" is worth 500 bucks a year? If so, can I cancel the policy with Smartcoverage? I just talked to them today. It won't take into affect until July 1st. Does auto insurance have something like 10 days cooling period? My current policy will expire July 1st.

How do you guys think about that? Thanks!
10 replies
Deal Guru
Apr 11, 2006
12388 posts
6570 upvotes
Vaughan
That's up to each individual. The actual Accident Forgiveness coverage itself doesn't cost $500. Most companies that have that feature available charge $40-$60 a year to add it on, if eligible. My policy, it cost me an extra $55/year (I'm in Ontario). So majority of that difference is in the pricing (assuming absolutely all coverages are exactly the same).

So Smartcoverage doesn't have it as an available option at all? It's not an option that every company has, but there's quite a few that do. So maybe you can keep shopping.

As far as cancelling is concerned, you can cancel anytime.
Deal Fanatic
User avatar
May 11, 2008
9545 posts
960 upvotes
For $500/yr, I don't think it's worth it...
Deal Addict
User avatar
Jul 10, 2007
4412 posts
303 upvotes
Toronto
Yeah, for $500 it's not worth it. Most companies, who offer it, charge $100 or less for the feature.
#KeepFightingMichael
Deal Fanatic
Jan 15, 2004
7631 posts
2175 upvotes
Shop around, peace of mind if you have first accident forgiveness. Maybe you can find another place with a smaller increase yet offer the feature. I say it's worth like $100-150 or so for me. But it's all personal. I used this feature many years ago when I avoid a collision and lost control. The other car got away, so by default, a one car accident is always at fault. Really pissed at the time as the guy didn't signal and cut into my lane on a rainy day.
Deal Fanatic
User avatar
Aug 11, 2008
9505 posts
1457 upvotes
Ontario
$500 a year for this coverage??? wow, most companies charge like 40-75 a year for it...

I would recommend definately having this on your policy - you never know when you'll need it...if you never do, then thats great, but just a piece of mind knowing that if you ever have an at fault accident, you'll have that protection on your policy for the 1st one...

and no, there is no cooling off period..just tell them you don't want the policy if thats what you have decided..they can void the application ...unless they've already sent it to the company..then you may have a minimum premium to pay....call them and ask


QUOTE=supermike;12969473]As I said in another post, my wife and I have a 2002 CIVIC. We haven't had any accident for 9 years.

I am currently with John's. They increased my premium around 40-50% from 140 something to around 190 in 5 years. My current policy will expire on July 1st. I was shopping around. Smartcoverage gave me around $148 a month. I will save around 40 bucks a month, 480 bucks a year. So I already agreed to go with Smartcoverage on the phone today. However, Smartcoverage doesn't have "First Accident Forgiveness" while John's offers this feature. When I told my wife this evening, she doesn't feel comfortable with that.

Do you guys think the "First Accident Forgiveness" is worth 500 bucks a year? If so, can I cancel the policy with Smartcoverage? I just talked to them today. It won't take into affect until July 1st. Does auto insurance have something like 10 days cooling period? My current policy will expire July 1st.

How do you guys think about that? Thanks![/QUOTE]
RIBO LICENCED INSURANCE BROKER, over 35 years experience
Member
Dec 10, 2006
356 posts
98 upvotes
Hey why don't u get a quote from td? They usually have great rates especially if ur college or university graduate.

Additionally, my quote only increased by 120 per year with accident forgiveness.
Deal Fanatic
User avatar
Dec 11, 2005
9870 posts
1914 upvotes
TO
But lets say if you change insurance companies after a year or two, this 1st accident forgiveness is not like you'll get lower rates with the new company because THEY DO ask if you've ever been in an accident? I agree it's worth it for $60-xx but does it really help when you move to a new insurance company?

edit: what I meant was you can't say NO (to the question if you've ever been in an accident) to a your insurance company when you're shopping knowing you had accident forgiveness so your first didn't count at all!
Deal Fanatic
User avatar
Aug 11, 2008
9505 posts
1457 upvotes
Ontario
it only applies to the company you had the accident with that coverage

going to a new company, they will rate you from the date of the accident, no forgiveness

why would you move to a new company after an at fault? even if you don't have the accident forgiveness, being a 6star driver, your rating will most likely drop to a 5star, a 2nd at fault to a 0...with the accident forgiveness, you remain at the 6star and a 2nd at fault, drop to a 5..regardless, your companies rates would most likely be lower than moving to a new company with an at fault...


TorontoEh wrote:
RIBO LICENCED INSURANCE BROKER, over 35 years experience
Sr. Member
Aug 29, 2005
810 posts
338 upvotes
kenchau wrote:
As far as cancelling is concerned, you can cancel anytime.
Really? I thought I only could cancel after the current policy expires. Is there any penalty if I cancel within one year?

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