Two Types of Accident Forgiveness
If you’re worried that your rates will rise after an accident, American Family offers two different options for accident forgiveness policies. Both types allow you to avoid premium increases following your first at-risk accident, and you won’t lose any safe driving discounts you’ve earned.
- New customers: American Family sells accident forgiveness coverage to drivers and households who meet the following criteria: no at-fault accidents or driving violations in the last 12 months, and no more than one at-fault accident in the last three years.
- Existing customers: Loyal American Family policyholders can earn a free accident forgiveness policy by staying claim-free for five years. If you file a claim, however, you will lose this option, and your premium might increase following an accident.
Drive Less, Save More
American Family offers usage-based car insurance for drivers in Arizona and Oregon. The program uses a smartphone app called MilesMyWay and a telematics sensor attached to your vehicle to transmit mileage data to American Family. If you drive fewer than 8,000 miles per year (about 667 miles per month), you can receive savings totaling up to 25 percent of your monthly premiums. MilesMyWay is an earned savings program, meaning you won’t be penalized or charged for driving more, but you’ll save by driving less.
For policyholders outside of Arizona and Oregon, American Family also offers a discount for customers who drive fewer than 7,500 miles per year.
Rideshare Driver Insurance
Many drivers for rideshare services like Uber and Lyft use their personal vehicles to earn money. However, keep in mind that this flexibility requires specialized insurance coverage. Your personal auto insurance policy does not cover your vehicle during commercial activity, such as giving rides for money.
Rideshare services usually offer insurance coverage to a driver while there is a passenger in the car, but that coverage turns off when the passenger gets out of the vehicle. Specialized rideshare insurance covers the period when the driver is working but doesn’t have a passenger in the car, such as when they’re waiting to be assigned a ride or driving to pick up a passenger.
This kind of coverage is necessary to make sure there are no lapses in protection. American Family is one of our picks for the best auto insurance for rideshares, with great accident forgiveness options for rideshare drivers.