Car insurance "new" optional features. Are they worth it?

[JEDI]

I have a 2005 Mazda3i and am insured with Nationwide.

They just implemented 2 new add-ons to my car insurance:
Accident foregiveness (foregives 1st accident incurred during policy)
Minor violation forgiveness (forgives 1 minor moving violation incurred during policy)

My car insurace went up 10% for this 6month period. (From $500 to $555). it's automatically included, but i can opt out by calling.

That's $110/yr. I'm assuming this is all because of these 2 new add-ons.

I view any "benefit" a company gives to me as more benfitial to them than it is to me, thus i'm wary.

Are these 2 features worth it?

 

[sjwaste]

You're basically just prepaying for those incidents in the current premium, discounted by some TVM factor against that exposure in your underwriting characteristics.

 

[JEDI]

Originally posted by: sjwaste
You're basically just prepaying for those incidents in the current premium, discounted by some TVM factor against that exposure in your underwriting characteristics.

so cancel them is better?

 

[Vette73]

Originally posted by: JEDI

Originally posted by: sjwaste
You're basically just prepaying for those incidents in the current premium, discounted by some TVM factor against that exposure in your underwriting characteristics.

so cancel them is better?

Me I would. But it depends on your driving hadit/style and also the area. In a place that gets a lot of snow/ice and you drive a lot then maybe worth it. If you drive very fast, badly, etc... then again might be worth it. But for me I don;t drive much, don;t really speed more then others(flow traffic), and in bad weather I try not to drive at all.

 

[sdifox]

accident forgiveness is a plus if you commute to work in a big city. Fender benders do happen and you don't want your premium to sky rocket when you get into one.

 

[halik]

Originally posted by: sjwaste
You're basically just prepaying for those incidents in the current premium, discounted by some TVM factor against that exposure in your underwriting characteristics.

Someone took finance in college... quoted for truf

Accident forgiveness and all the other gimimmicks with a premium X are equivalent to a lower premium at a competing insurance carrier. You will be paying for the accident one way or another.

 

[JEDI]

http://www.foxnews.com/story/0,2933,187228,00.html

interesting article on Accident foregiveness add-on policy.

As for "accident forgiveness," it's true that insurers often raise your rates after a crash. But Nationwide forgives a single accident and multiple minor ones after three years of safe driving and it doesn't cost you a penny more.

i have Nationwide. grrr...

just called them and canceled these so called value added policy riders.