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Drivers should consider options when contemplating accident forgiveness on auto insurance

Posted On Tue, December 8, 2009

Accident forgiveness is an option provided by a number of companies that offer auto insurance, though consumers should consider their options before getting it.

According to the National Association of Insurance Commissioners, getting accident forgiveness on an auto insurance policy may end up costing a driver more in premiums. If it is not part of the standard insurance policy from a company, it may be offered as an add-on for an additional fee.

The NAIC notes that generally insurance providers will offer accident forgiveness to people who qualify in two areas - either they have a clean driving record or have been with the insurer for a long period of time. However, some companies may also offer it in order to entice people to leave their current insurance company.

Though accident forgiveness could add to the cost of a policy, there are a number of ways drivers may be able to save money on premiums. For example, they may consider increasing their deductable, which can lead to lower monthly costs. Also, some companies may offer lower rates for people who do not use their cars often.

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