CAA Insurance adds Accident Forgiveness endorsement in Nova Scotia
The Nova Scotia Utility and Review Board has approved an application from the CAA Insurance Company that will allow the insurer to offer an accident forgiveness endorsement.
The Company explained to the Board that it offers a similar endorsement in other provinces, and that agents in Nova Scotia had indicated to it that a market for the endorsement exists.
The endorsement as proposed will provide clients with forgiveness of an at-fault accident, and not affect the driver’s rating. This would apply only to the first at-fault accident.
To be eligible for the endorsement, a driver must possess driving record 6, which means that the driver must have had no at-fault accidents in the previous 6 years. If an eligible driver who purchased the endorsement has an at-fault accident, the endorsement is lost, and the driving record remains at 6. The driver must be free of accident claims for a further period of 6 years before being eligible to purchase the endorsement again. If the driver has another at-fault accident within 6 years, the driving record will be reduced.
The protection offered by the endorsement would not be available in certain circumstances, namely:
- Occasional operators are not covered;
- If there is a violation of any mandatory or policy condition in relation to the accident; or
- The driver is convicted of a Major or Serious offence (as defined in the Rate Manual) under the Criminal Code of Canada in relation to the accident.
The Board approved the proposal, and approves the effective dates of March 1, 2011, for new business, and April 1, 2011, for renewal business.
Did you know… the average auto claim for a new or young Nova Scotia driver is $6,608? Find out more here: http://www.ilstv.com/car-insurance-claims-from-young-drivers-44-higher-than-experienced-drivers/
