Is accident forgiveness a good idea for me?
I currently have a young daughter (16-years-old) and got her a leased vehicle because it was the cheapest option for us. Afterwards, I'm realizing that maybe that wasn't a good idea because I found out we have to keep this car in mint condition. We're going to stick it out anyway, but I'm looking into what options I have in terms of insuring this thing. It's a 2018 Honda Civic. I read about accident forgiveness (I have Nationwide) and I'm curious if it's a good idea.
You might be a good contender for this policy option. Most lease contracts will require you to keep the vehicle in good condition. Meaning, if your daughter were to damage the vehicle, you'd have to file a collision claim and get it repaired. Now, considering that collision claims are seen as at-fault accidents, that would negatively affect your premium for up to 3 years. In Texas in 2017, an at-fault accident raised rates by an average of 43% per year. Considering her age and lack of driving experience, the probability of her filing a claim is higher than it would be for you. In short, you want to consider what is the likelihood your daughter would need to file a claim, the value of the premium increase after filing a claim, versus the premium increase for adding Accident Forgiveness to your Nationwide policy.