In Kansas City, Missouri, drivers are once again reminded to take responsibility and be more careful and focused on the road now that holiday season is fast approaching. According to state records, the months November and December marks the busiest time of the year for insurance providers as more drivers spend time on the road. With more motorists planning long trips and vacation, this holiday season is the best time for motorists to be well informed regarding accident forgiveness, how it works, and whether or not getting one is a smart choice.
The National Association of Insurance Commissioners (NAIC) has launched a campaign that offers information regarding accident forgiveness. Accident forgiveness is an option that drivers can take advantage of to prevent premium hikes as a result of getting involved in a collision or at-fault car accident.
According to local consumer groups, this campaign initiated by NAIC is very timely since holidays in Kansas represent a season where the most number of accident claims are filed. During this time, motorists suffer the burden of paying higher premiums due to lack of awareness regarding accident forgiveness.
For most insurance providers in Kansas, accident forgiveness is a tempting bonus offered to loyal customers or drivers who have shown an excellent safe driving record as part of their policy papers. It grants a policyholder the option of choosing to not have his premium rates increased after being involved in an accident. Some insurance providers use it as a form of incentive to new clients for switching from another company; some even extend this option to children of existing customers.
On the other hand, motorists should not see accident forgiveness as a form of free pass to be caught in a collision since it also has conditions and certain limitations. Records from NAIC show that costs for having accident forgiveness vary from insurance provider to another, and a common practice in Kansas is that drivers pay a higher premium rate for policies that incorporate extra protection. Providers can raise premium rates by as high as 40% after an accident. This means, safe motorists who pay average rates might not appreciate the benefit of accident forgiveness.
Insurance experts advise drivers to first look back and see if they have a history of collisions and road violations. If they do, they are already charged higher premiums and may need accident forgiveness as a way to save money in the long run. However, drivers with a clean slate need not get accident forgiveness, as this may increase their spending in the end.