Accident Forgiveness

Accident Forgiveness occurs when an insurer agrees to overlook a rate change caused by an accident occurring and by overlooking the accident. No increase in rate is applied and the premium is the same as if there never had been an accident. It is as if the claim did not occur. Once this forgiveness has been invoked then the next accident will result in a rate change.

The time period for history of automobile accidents is usually six years. Some insurers track accidents up to 10 years.

Some insurers will put an SEF 39 on their policy declaration. This means that the first accident is forgiven. Other insurers will not put the declaration on the policy but will not totally rerate the policy. These insurers usually penalize the driver of that vehicle by a small amount for one year. Drive another year accident free and your record and rate is restored.

This important coverage should be discussed with your broker or agent. If your company has granted accident forgiveness another insurer would likely not and the rates could be significantly higher. Report all claims, whether you are at fault or not at fault to your broker or agent.