Do You Need Auto Insurance Add‑Ons? Why Accident Forgiveness and Rental Reimbursement Matter

Accident forgiveness and rental reimbursement are often optional add-ons you can consider for your personal auto insurance policy. But do you actually need them? While you aren’t required to add these options, they can be useful in certain situations.

What Is Accident Forgiveness?

Accident forgiveness is an optional add-on to many auto insurance policies and is designed to protect you from increasing premiums after your first at-fault accident. It often applies only once per policy, not per driver. Some insurers include this option in policies for loyal customers.

You may consider adding accident forgiveness if the following apply to you:

• You have a clean driving record.
• You’re a new or younger driver with limited driving experience.
• You want financial protection from rate increases due to accidents.

You may consider skipping this add-on if the following apply:

• You’ve already had an at-fault accident. (You may not qualify for this add-on.)
• Your insurer offers it for free, or it’s already included in your premium.

What Is Rental Reimbursement?

Rental reimbursement can help pay for your rental car while your vehicle is being repaired after a covered accident. There are usually limits to how much your insurer will contribute daily, so speak with your insurer to know exactly what your policy covers.

You may consider adding this if the following apply to you:

• You don’t have a backup vehicle.
• You can’t afford a rental out-of-pocket.
• You depend on your car for daily commuting.

You may consider skipping this add-on if the following apply:

• You have access to another vehicle.
• You can easily utilize public transportation.
• You can cover rental costs out-of-pocket.

Contact Us

Including accident forgiveness and rental reimbursement in your auto insurance policy can come in handy for some drivers. The team at Monroe-Kelly Insurance Services Inc in Carmel, CA can help you determine if you can benefit from these coverages, or if they’re already included in your auto policy. Contact us today for more information or a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.