“Accident forgiveness” is one of the car insurance discounts that you may have heard about but don’t fully understand. Most major insurers — including Allstate, Geico, The Hartford, Liberty Mutual, Nationwide, Progressive and State Farm, among others — offer it to their best customers, those without past accidents and moving violations.
Do car insurance companies forgive accidents?
If you have a clean driving record, the insurance company will ignore the first accident and not raise your premium. Additionally, your deductible could drop by as much as $100 yearly if you maintain a spotless record after the mishap.
The details, however, vary from company to company. Some may give you accident forgiveness immediately, while others will only do so after you’ve been an accident-free policyholder for as many as five years.
Still, others may forgive one accident per policy in a three-year period, some will forgive one every six years, and some will waive one per driver listed on the policy every three years. You may also be required to have had no moving violations for three years. If you’re considering signing on for accident forgiveness, you need to talk with agents and read the fine print to understand how to qualify.
Once you study that fine print, you’ll see that this feature is not usually free, even with a perfect driving history. At Allstate, for example, you get accident forgiveness by upgrading to a Gold Protection or Platinum Protection package under its Your Choice Auto plan, which can add about 8% to 15% to the cost of a standard policy, depending on the vehicle owner.
Under Gold, you’re forgiven for only the first accident. With the more expensive Platinum, your rates won’t rise even with subsequent accident claims. But, the insurer points out, you may become ineligible for Platinum if you rack up several crash claims.
Florida Car Insurance Rates by ZIP Code
Enter ZIP for average rate. Then enter Age, Gender and Coverage Level for customized rate.
Highest Rate
$129/mo.
Lowest Rate
$47/mo.
| MOST EXPENSIVE PER MONTH |
|---|
| 33012 - Hialeah: $128 |
| 33135 - Miami: $128 |
| 33013 - Hialeah: $128 |
| 33125 - Miami: $127 |
| LEAST EXPENSIVE PER MONTH |
|---|
| 32425 - Bonifay: $53 |
| 32440 - Graceville: $53 |
| 32431 - Cottondale: $53 |
| 32428 - Chipley: $53 |
CarInsurance.com commissioned Quadrant Information Services to provide a report of average auto insurance rates for a 2017 Honda Accord for nearly every ZIP code in the United States. We calculated rates using data for up to six large carriers. Averages for the default result are based monthly insurance for a male driver, age 30, for state minimum required liability coverage. Averages for customized rates are based on drivers’ ages and gender for the following coverage levels: state minimum liability, liability of 50/100/50 and 100/300/100 with $500 deductible on comprehensive and collision. These hypothetical drivers have clean records and good credit. Average rates are for comparative purposes. Your own rate will depend on your personal factors and vehicle.
Figure out if accident forgiveness is worth the cost
So, if you’re a great driver with no smudges on your record, is it a good idea to pay more for the protection or take the chance that your motoring skills (or luck) will continue?
If you’re a careful driver, it may not be prudent to pay extra for accident forgiveness – you may be better off just driving with caution and then shopping for the best rates should you get into a wreck.
One way to tell if accident forgiveness is a good fit is to compare the extra cost of the perk with how much your car insurance company will hike your rate for an at-fault accident.
Each car insurance company has a surcharge schedule that outlines the percentage increase that specific infractions trigger, such as an at-fault accident. By asking your insurer for a copy of this and researching the potential rate hike for an accident, you can do the math to see if it’s worth paying extra for accident forgiveness or paying the rate increase for a wreck should you have one.
Michael Barry, the chief communications officer and the head of media relations and public affairs at the Insurance Information Institute says that the III does not have an opinion on accident forgiveness, but it does have a strong position on consumer awareness.
“In our view, the policyholder needs to quiz either their insurance agent or insurance company representative about the pros/cons of accident forgiveness” before buying the provision, he says. “Education, knowing what you have and what you need, is always a great idea.”
— Mark Chalon Smith contributed to this story.
Resources & Methodology
Sources
Insurance Information Institute. “About us.” Accessed January 2023.
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