What do accident forgiveness and new car replacement coverage mean on an insurance policy?

I've seen companies like Nationwide and Progressive offer things like new car replacement coverage and accident forgiveness. What would it cover and how do you qualify for it?

“To qualify for additional coverages like accident forgiveness and new car replacement coverage, you do need to meet specific requirements with carriers.
Accident forgiveness usually means that if you get into an at-fault accident, it won’t negatively impact your rate with your existing carrier. It’s usually only available to people with clean driving records.
New car replacement coverage will ensure that you receive enough money to buy a car of a similar make and model if your previous vehicle is totaled. Typically, it’s only valid for the first year or two of ownership and if your vehicle is under a certain mileage limit.”
Emily Maracle
Answered on May 07, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.

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