Accident forgiveness insurance in Cincinnati, is it worth the price?

How badly do insurance companies surcharge your car insurance in Cincinnati for accidents when you select the accident forgiveness program?

In a previous article we discussed the additional premium that you must pay to obtain accident forgiveness on car insurance in Cincinnati.  Let’s assume that you are tempted to buy one of these options because you have a history of causing accidents.

How badly will the company surcharge your premium if you already have one accident on your record and you want the option of accident forgiveness?  Let’s find out

In this new quote example were adding my 17-year-old son to the policy driving a 1998 Honda Accord with liability only. (Allstate insurance offers three coverage packages on car insurance in Cincinnati, Silver, Gold, & Platinum.)

First quote scenario with Allstate insurance in Cincinnati- No tickets or accidents for any driver

1.        The Silver package- $203 per month 
2.        The Gold package – $219 per month
3.        The platinum package- $234 per month

The second quote scenario with Allstate insurance in Cincinnati- My 17-year-old son has an accident and one ticket

1.        The Silver package- $289 per month
2.        The Gold package – $314 per month
3.        The platinum package- $336 per month

When you receive Allstate car insurance quotes in Cincinnati there is a 17% difference in price between the Silver package which does not extend accident forgiveness, and the platinum car insurance packages Allstate insurance offers.  (In this quote instance)

So in other words if you have an accident prone driver in your house that already has one accident, and you decide that you want accident forgiveness you are going to pay nearly $600 more per year with Allstate to have the accident forgiveness program.  Assuming that you never have an accident again this is definitely a worse deal for you because you will be overpaying on your insurance for the security of knowing that you won’t get a rate increase, but by choosing this option haven’t you already got the rate increase?

A few of the insurance copies we represent in our agency offer accident forgiveness.  We do not recommend it because we don’t think it is a good deal for consumers in the long run.

It is our opinion that Insurance companies are making more profits by offering this option to policyholders.

To get the best car insurance rates in Cincinnati, skip the accident forgiveness option.

Contact Pathway Insurance at 513-662-7000 for Instant Car Insurance Quotes in Cincinnati.

Disclaimer – Allstate insurance in Cincinnati premium comparison was completed online at the Allstate insurance online system.

Why do Independent Insurance Agencies in Cincinnati Offer the Best Rates?

If you’re looking for new insurance options call 513-662-7000, or click online insurance quotes and in 5 minutes or less you will receive quotes from top rated insurance companies in your area. 

Purchasing insurance from an independent agency in Cincinnati is a better solution compared to buying from a company only representing one company.

Most people would agree that insurance is inherently confusing. 

Adding confusion to the mix is a nearly universal message conveyed by almost every insurance company advertising on television:

Call us for cheap car insurance! 

Based on the implied assumption that the price we pay for insurance should be the chief factor in our decision making process, insurance buyers are left unaware of the dangers in believing all policies are equal between insurance carriers.

This lack of knowledge could very well cost the unassuming insurance buyer more money at some point in the future compared to what was saved in the short term. (claim denial)

What You Don’t Know When Shopping for Insurance?

What insurance companies don’t bother to explain is the super cheap rate they just offered you is not guaranteed for any longer than your first renewal term. 

The other small detail they left out on the fine print of their television advertisement is that they will increase your price at some point in the future! 

So the money you ‘saved’ by switching to a new company will likely disappear, or you might find yourself spending significantly more money than what you were paying before you switched!      

Simple Facts About Insurance:

If you buy Geico car insurance in Cincinnati because they offered you a lower rate compared to your previous insurance company.  Don’t get used to that low rate.  Eventually Geico will raise your rates!

It’s 100% true.  

Insurance companies are constantly modifying and changing their insurance rates based on a number of underlying factors.

One factor is the inevitable rate increase you are hit with after you cause an accident, get a ticket, add your 16 year son or daughter to your policy, or buy a sports car.

While it is true that some Insurance companies advertise accident forgiveness in Cincinnati, what they’re not telling you is that you have to pay extra money for accident forgiveness!

Rate Increase Example

A client by the name of Wilson changed to Geico a few years ago because he saved about $100.  He thought he was being a good consumer by saving money.  

After causing an accident Wilson received a substantial rate increase on his Cincinnati Geico car insurance policy.

He called our office to see if we could lower his rate.  We could and saved him about $400 compared to what Geico was going to charge him on his next policy renewal after they surcharged his car insurance policy for the accident.

If you save money on your insurance, you may pay more later because of a change in your circumstances. 

There is a proven way to keep your premiums low over the long run…it’s when you buy insurance from an independent insurance agency in Cincinnati.

How Can Our Independent Insurance Agency Offer Better Rates over the Long Run for Consumers?

Let’s assume that you are already insured with our agency and you receive a large rate increase because of an accident or other claim. We can shop your insurance with other insurance companies at your request! 

In contrast Geico sells car insurance through only one company – Themselves! 

When Geico raises your prices, they are not going to encourage you to take your business elsewhere.

Surprisingly many consumers are not aware that many of the companies advertising so predominately on television only offer insurance from one company!

Independent Insurance Agents in Cincinnati Offer a Better Choice for Consumers. 

Because we represent so many different insurance carriers, when you receive a rate increase on your insurance we can shop around to determine if you would qualify for lower rates. 

This type of approach is significantly better for you because not only is it likely that we can help you find a better rate, but we can also save you time.

So when you purchase insurance with our independent agency in Cincinnati you receive a significant benefit compared to companies offering insurance through only one company!

Pathway Insurance is a leading independent insurance agency in Cincinnati.  Call our office at 513-662-7000, or click here to receive an online insurance quote.

(Are you looking for great rates on automobile insurance in Cincinnati?  Call 513-662-7000, or request an online insurance quote by clicking here.)

Is this Truth or Fiction?

It’s true, but what they don’t tell you is that you have to pay extra money for this option.

For instance Allstate Insurance in Cincinnati offers three basic policy levels on their automobile insurance policies:

 Silver + Gold + Platinum

The Silver Package is Allstate insurance basic package this option does not include accident forgiveness.

The Gold Package gives you one immediate accident that they will not surcharge your policy.

The Platinum Package gives you multiple accidents without a surcharge.

How do the various packages compare in price? (Quotes were obtained using Allstate’s online quote system which proved to be somewhat inaccurate. See explanation below.)

The Silver package- $146 per month

The Gold package – $158 per month

The platinum package- $168 per month

If you buy Allstate car insurance in Cincinnati and choose the Gold package with Allstate you are going to pay about 8% premium increase on this option. If you buy the platinum package with Allstate your premium increases over 15%.

Is it worth the extra money, or is it merely a method for the insurance companies to increase their profits?

It’s my opinion that this will increase the insurance companies ‘profit margins more so that it will benefit policyholders and that’s why most major insurance companies are pushing this option.  We also represent insurance companies in our independent agency in Cincinnati that offer accident forgiveness for an additional premium charges.

In our opinion go with the basic package, be a safe driver and practice accident avoidance.

If you are with Allstate Insurance in Cincinnati you might be able to save hundreds of dollars by switching to our Cincinnati independent insurance agency.

The insurance quote example that I used in this comparison with Allstate insurance in Cincinnati is my personal example.   I pay less than $75 per month on my car insurance in Cincinnati compared to $146 per month that Allstate insurance would charge me if I bought a policy directly from them. (This comparison quote was completed on November 23, 2010 using Allstate’s online quote system.)

Contact information for Pathway Insurance

513-662-7000

Jack@pathwayinsurance.net

Click here for online insurance quotes in Cincinnati

*Vehicles quoted were a 2010 Honda Civic, and a 2004 Honda Pilot EXL. Coverage limits were 500/500/500 with matching uninsured and underinsured limits. $100 deductible for comprehensive and $500 deductible for collision Road side assistance plus car rental is included.

There were some potential inaccuracies on the online Allstate insurance quotes that I discovered when a local Allstate insurance agent in Cincinnati called me to discuss the insurance quotes.  The online insurance quotes that I obtained for Allstate did not give you the option for a multi-policy discount, in other words if you package your automobile insurance and your homeowners insurance with the same company there is an added discount. The Allstate agent e-mailed quotes to me but they were not accurate. (I asked the agent to send me 500/500/500 liability quotes and she sent me 250/500/100, so I could not verify the accuracy between the online Allstate quote system and the actual quotes she sent to me. The quotes the Allstate insurance agent sent to me included a multi-policy discount, a future effective date discount, and lower limits for car rental, rental reimbursement and no coverage for loan gap coverage and the liability limits were significantly lower + she did not have business usage added to my policy, the Allstate car insurance quote in Cincinnati with significantly lower limits came in about $98 per month.)