Is First Accident Forgiveness Real?

May 27, 2016

  1. vasy
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    vasy New Member

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    My insurance company, Liberty Mutual, has this forgiveness program. The first at-fault accident in 5 years for all drivers in the policy won't cause a premium increase. Does anyone know if this is as good as they claim? Do these insurance companies actually keep their promise? When they raise your rates (which happens from time to time), we don't really know the reason behind it.
     
    vasy, May 27, 2016
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  2. hesse
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    hesse Guru

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    Its probably true that they don't raise your rates for the first at fault. However you may see a price increase due to losing a claim free discount or a loss cost factor estimate went up.

    Odds are your price will go up but technically they didn't raise your rates.

    marketing
     
    hesse, May 27, 2016
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  3. Heather
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    Heather Guru

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    I have seen fine print to where you have to be a customer for a certain amount of years, or there is accident forgiveness but the rates are higher than a policy without it.
     
    Heather, May 27, 2016
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  4. AllstateMaine
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    Allstate certainly lives up to their Claims Free Discount, as well as their Claim Satisfaction Guarantee. You may not see an increase in premium, but the loss of other discounts may offset the "free" accident. Welcome discounts on new policies will not be applied to renewals, which will cause an increase in premium. If your agent can't tell you what discounts have been applied or which will be expire and when....then it's time to start shopping for someone that actually cares.
     
  5. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    It's not real in California. It says so in the fine print on all their commercials.
     
    DHK, May 27, 2016
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  6. FEX Quotes
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    FEX Quotes Guru

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    Accident Forgiveness
    If you've been accident and violation-free for 5 years (no matter what insurance carrier you've been with), we won't raise your rates due to your first accident. If you qualify, you'll receive this benefit at no extra cost. Learn more about Accident Forgiveness.

    https://www.libertymutual.com/auto/car-insurance-benefits

    .
     
  7. djs
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    djs Super Moderator Moderator

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    Depends what you mean by 'real'.

    All things get paid for somehow. You just have to find where else they charge you. For most, it may be a slightly higher premium all along. In some cases, they are buying up market share, for a while, then raise rates across the board.

    Lets be realistic though, the increased premium when you have an accident doesn't usually cover the cost of the accident, so that isn't how they make their money in the first place. One accident doesn't kill them. The second one will wipe out the first accident forgiveness and cause a steep premium increase with most carriers. Of course, that would happen anyway.

    Its real, but its really a marketing gimmick. Not allowed in all states since it really is just about moving dollars around in premium pricing.

    Dan
     
    djs, May 27, 2016
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  8. agentinsouth
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    agentinsouth Guru

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    Yes it is true. However, your rate can still increase for other reasons. For example, rate increases across the boards & other discounts rolling.
     
  9. rob53
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    rob53 New Member

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    Yes, it's true but premium will be slightly higher to include this forgiveness.
     
    rob53, Jun 1, 2016
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  10. Dmp2016
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    Dmp2016 New Member

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    It was't real in my case in CT. My wife had her first small accident after driving safely for 21 years. That's correct, her first accident after 21 years of driving. The Liberty Mutual raised my rates more than $500. I was pissed when I noticed. I called and they could not explain. Same day, I switched to Amica and paying lower with same coverage and I love their service. I can't stand their commercial about accident forgiveness. Never Liberty Mutual.
     
    Dmp2016, Oct 18, 2016
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