What is Accident Forgiveness?

What is Accident Forgiveness?

Accident Forgiveness is an endorsement added to your car insurance policy based on eligibility. Having first-time Accident Forgiveness on your car insurance means that if you have a chargeable at-fault accident, it won’t be rated at renewal. In other words, your premium won’t go up because of it.

How does Accident Forgiveness insurance work?

Generally, your premium will increase at renewal if you get into an accident and it’s your fault. Think of Accident Forgiveness as your one “free pass” for your first at-fault accident. If you have it on your policy, your premium at renewal won’t be impacted by that accident.

Keep in mind, Accident Forgiveness applies to your first at-fault claim only. If you have another at-fault accident, your Accident Forgiveness will be removed from your policy. You’ll be rated for both accidents – and any at-fault accidents after that.

Heads up! Even though it won’t affect your rate, your first accident will still be kept on record. If you switch insurers, you could be rated for this claim by your new provider.

How do you qualify for Accident Forgiveness?

At Sonnet, we include first-time Accident Forgiveness automatically as long as you qualify for it:

  • You must not have a chargeable at-fault accident in  the last six years
  • You must be licensed continuously for the last six years 
  • You must be insured continuously for the last six years (Alberta, New Brunswick, Nova Scotia & PEI only)
  • You must not have had your auto coverage cancelled for non-payment in the last three years
  • You must not have four or more minor convictions or any other major, serious or criminal convictions in the past three years

Does your car insurance increase after an accident?

Yes, it can. If you’re found to be at-fault in an accident, your premium will most likely go up. Insurers calculate your premium based on a variety of factors. These include your driving history and overall risk as a driver. And the more accidents you have, the riskier you are to an insurer.

Tip: What’s one of the best ways to prevent your insurance from going up? You guessed it – it’s avoiding accidents. Check out our tips on how to be ready for car accidents, plus steps to follow if one does happen.

Want to know more? We’re happy to help! Just contact us. Our fully-licensed Insurance Advisors can get you answers.