Is Accident Forgiveness Simply a Pre-Paid Insurance Increase?

I’ve had my insurance with Allstate New Jersey for the last 11 years. It’s not a bad relationship. They don’t bother me, I don’t bother them, and I guess we’re both happy.

It’s been a long time since I’ve had to talk to Allstate. We sold a car last year, and I had to call to take it off the policy. I don’t remember how long it was before that when I had to talk to them last.

One of the last two times I had to call Allstate was right after Accident Forgiveness was rolled out. I thought that was a great idea. I’ve paid tens of thousands or more of dollars for car insurance, and so far I have not had to make a single claim. So by this point, after 20 years of driving (and paying insurance), being forgiven for an accident sounds like a great idea. I could probably have bought several cars for what I’ve paid in insurance, especially in the early years when it cost me a fortune to insure a car simply because I was young, single, and male.

But when they asked me if I wanted to add accident forgiveness to my policy, they explained that it would raise the cost of my policy. I politely declined.

I have to ask, if you’ve talked to your insurance company about accident forgiveness: isn’t this just another banking/insurance scam? Is this little more than pre-paying a policy increase? Or am I missing something?

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