"I'd rather stash that cash into an emergency fund—covers more than just mailbox mishaps..."
Good point, but here's my thing:
- Had a minor fender bender last winter (icy roads, ugh).
- Accident forgiveness saved me from a premium hike.
- Still wondering though...would my emergency fund have covered it better?
Emergency funds are great, but they're more like a Swiss Army knife—handy for lots of things, but not always the best tool for every job. Accident forgiveness is specifically designed to shield you from premium hikes after minor mishaps (like your icy-road adventure). Sure, your emergency fund could've covered repairs, but it wouldn't stop your insurance from bumping up rates afterward. So yeah, in Ohio winters especially...accident forgiveness can be worth its weight in salt bags.
Accident forgiveness is one of those things you don't think you'll need...until suddenly you do. I've seen plenty of claims from folks who drove carefully for years, then had one unlucky morning sliding on black ice or hitting a hidden pothole (thanks, Ohio roads...). Without forgiveness, even a minor accident can bump premiums noticeably for several years. Sure, your emergency fund covers repairs—but it's not gonna help with the sting of higher rates down the road. It's basically insurance against Murphy's Law, and around here, Murphy loves winter driving.
"Without forgiveness, even a minor accident can bump premiums noticeably for several years."
Exactly this. Honestly, I used to think accident forgiveness was just another upsell until my neighbor had a fender-bender on 71 last winter. He'd been accident-free forever, but the premium hike afterward was brutal. Makes me wonder though—has anyone actually crunched the numbers to see how much extra you're paying upfront for accident forgiveness vs. the potential premium increase after an incident? Would be interesting to see if it truly balances out...
I used to wonder the same thing until I had a minor scrape backing out of a parking spot downtown last year. Nothing major, just a dented bumper, but my premium jumped about 20% and stayed there for three years. Afterwards, I did some quick math—turns out accident forgiveness would've cost me less overall than what I ended up paying extra. Might be worth running your own numbers based on your policy specifics...
