Actually, come to think about it, Allstate does have the safe driving bonus check, which could be considered a form of premium forgiveness!
Insurance companies know tickets lead to higher incidences of accidents, which means there’s a greater chance they’ll pay out an insurance claim.
And any time an insurance company believes you have a higher statistical chance of filing a claim, they’re going to charge you more money for coverage. There’s no way around it…or is there?
How Ticket Forgiveness Works
Ticket forgiveness is basically insurance for your car insurance. Huh? What we mean is; for additional premium, your insurer will “forgive” you if you receive a ticket while insured with them.
By “forgive,” they mean not charging you additional premium for receiving the ticket.
To recap: If you pay an additional premium upfront, you may be able to save yourself additional premium if you receive a ticket. You’re not crazy if this sounds a little like a scam.
Wait! Am I Being Ripped Off?
Not necessarily. The hope is the “upfront” additional premium is much less than what you’d end up paying if you received a ticket and didn’t have this get out of jail free card.
For example, if ticket forgiveness costs an extra five bucks per month in premium ($60 per year), and having a ticket on your record causes your insurance to rise $200 per year for three years ($600), you’d make out out like a bandit by purchasing ticket forgiveness coverage.
Who Qualifies for Ticket Forgiveness?
Using the example above, insurance companies would lose out on $420 in premium over the course of three years by offering ticket forgiveness.
But they aren’t stupid and certainly know how to make a buck.
As a result, a driver will typically need to have a clean driving record to qualify for the program in the first place.
A clean driving record will depend on the insurance company in question.
Some companies require that you have a clean record for a certain period of time, maybe 3-5 years, or you won’t be eligible.
And others simply don’t offer ticket forgiveness in any respect, good driver or bad.
What Are My Options?
Well, first you should see how much your insurance actually goes up after the ticket. It might not be as bad as you think. But it could be worse than you ever imagined.
Then compare your new premium cost to other carriers. Be sure to get insurance quotes online and/or visit a local independent insurance agent to shop your car insurance rates with multiple insurance companies.
You might find an insurer with a lower premium AFTER your ticket than your current carrier charges without the ticket. No “ticket forgiveness” necessary.
Read more: Why do car insurance rates go up?