Accident Forgiveness - Geico

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Geico gave me a quote cheaper than my current insurance, so looking to switch. One of their options is to pay $12 a yr for accident forgiveness so if I get in an accident, rates won't go up. Wondering if anyone else has feedback on this choice?

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Accident Forgiveness - Geico
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I don't recall that option while I was with them so I can't say how well it works. That said, I was with them over 10 years and the last few they kept jacking my rates even though I had a spotless record. I ended up switching to Progressive at 50% less for the same coverage. So be prepared for Geico upping your premiums in a few years, accident forgiveness or not, once they feel you're a "locked in" customer.

I have never heard of paying an extra $12 for accident forgiveness. It doesn't make sense to me. So you can pay an extra $24/year and get into accidents and they will never hold it against you?

I believe they do forgive accidents that cost less than $750 to resolve however.

Progressive offers the same thing for free, based on how many years you have been with them. Sounds like they are just allowing you to pay the increased premium upfront so you don't have to pay it later if you have an accident.

All "accident forgiveness" is essentially pre-payment. Sometimes it is broken out as a separate fee. Sometimes it is embedded in the pricing.

Either way, "forgiving" an accident has a cost to the insurance company. And, insurance companies being companies, the costs are passed along to you.

It's got to be one of the more effective marketing ploys since the days when GM increased the warranty period on its cars and embedded the extra cost into the MSRP. Consumers said, "Wow! GM must have improved its quality to now be offering longer warranties for free". And, of course, it wasn't free.

Slimy Lizard Insurance isn't going to give you anything, net, ever. Changed to State Farm and have kept for decades earning lowered rates.

All auto insurance companies raise their rates over time for their renewal customers. The best rates are always offered to new customers to capture their business.

How many accidents will they "forgive?" I think just one. Lets say that one accident is a biggie. You were drunk, hit a school bus full of children that fell off a bridge and exploded, and you fled the scene? Would they forgive that? I think they will cancel you outright. Of course, if that happened, accident forgiveness is the least of your worries.

Will they forgive you if you "accidentally" step on that annoying lizard and rid the world of it?

I pay about 50% less in the State of Arizona for Geico then when I had State Farm.

vipercon said:   Progressive offers the same thing for free

Since when? Last time I got a quote from them, there were multiple tiers of coverage, and you had to pay extra for a plan that included "free" accident "forgiveness".

Edit: Actually, I may have been thinking of Allstate, not progressive. Sorry.

Also, did a quick google search on the topic. Not sure if it's true, but I found a few articles which suggested that while "forgiveness" means they won't raise your premium, legally that's all it applies to. It does not apply to any discounts they offer you. So while your premium itself won't go up directly, you may lose your safe driver discount, effectively raising the price you pay.

samiam68 said:   Will they forgive you if you "accidentally" step on that annoying lizard and rid the world of it?I'll take the lizard 1000 times over as long as they never bring back that stupid god damn caveman.

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