What is Accident Forgiveness?

Accidents can happen to even the most cautious drivers, leaving you wondering how to protect yourself from rising insurance rates if you're involved in one. One way to safeguard against premium increases is by adding accident forgiveness coverage to your car insurance policy.

What is Accident Forgiveness?

Accident forgiveness—sometimes called accident waiver, driving record protection, or first claim forgiveness—is an add-on to your car insurance policy that prevents your premium from increasing after your first at-fault accident.

How Do You Qualify for Accident Forgiveness?

Unlike many other car insurance endorsements that are widely available, accident forgiveness comes with stricter eligibility requirements. Most insurers will only offer this benefit to drivers who have demonstrated a history of safe driving, typically meaning no at-fault accidents in recent years.

Eligibility for accident forgiveness varies depending on your insurer and province. If you have a clean driving record, check with your broker to see if you qualify for this coverage.

Common Myths About Accident Forgiveness

Even after adding accident forgiveness to your policy, there are certain scenarios where it may not apply, which could still lead to a premium increase. Here are some common misconceptions about how accident forgiveness works:

Myth 1: Accident forgiveness applies to any car accident.
Reality: Accident forgiveness typically only applies after your first at-fault accident, and it varies by insurer and province. It may not apply if you receive demerit points, are charged under your province’s highway traffic act, or commit a criminal offense.

Myth 2: Your accident will be forgiven no matter who is driving your car.
Reality: Accident forgiveness generally applies only to the primary driver listed on your car insurance policy.

Myth 3: Accident forgiveness erases the accident from your driving record.
Reality: While accident forgiveness prevents your premium from increasing, the accident is still recorded on your driving history. This record could impact your premium if you switch insurers.

Myth 4: Accident forgiveness transfers to a new insurer.
Reality: If you switch insurance providers, you cannot transfer your accident forgiveness coverage. You will need to qualify for it with your new insurer if you want it added to your new policy.

Want to know if you’re eligible for accident forgiveness? Contact us today to find out how this coverage can help you stay protected.