CarInsurance.com Insights
- Accident forgiveness is an optional add-on coverage that prevents your premiums from increasing after your first at-fault accident.
- If you’ve had a clean driving record for three to five years, your insurance company may have provided accident forgiveness in your policy.
- Accident forgiveness may not be worth the additional monthly cost, especially if you have maintained a clean driving record for years.
If you have an at-fault accident that causes more than $2,000 in damages, your car insurance premium could go up by 60%, or $1,551 a year, according to CarInsurance.com’s analysis. Accident forgiveness is designed to prevent this increase after your first at-fault crash, so you are not penalized for one mistake.
Learn more about this coverage, including how it works, the car insurance companies that offer it and whether it’s worth the price.
What is accident forgiveness?
Accident forgiveness is a type of coverage that prevents your premium from increasing after your first at-fault accident. If you don’t have it, you might have to pay out-of-pocket costs like deductibles and medical bills, and your premium could go up. With accident forgiveness, your premium stays the same after your first claim.
Many car insurance companies offer accident forgiveness programs — coverage that prevents premium increases after your first accident. Your premium should stay the same after an accident claim for damages and losses if you’ve purchased accident forgiveness.
Your driving record usually determines whether you qualify for accident forgiveness. For example, you’d be eligible to purchase accident forgiveness coverage if you’ve had a clean driving record — no accidents, speeding tickets or DUIs — for the past five years.
Who qualifies for accident forgiveness?
Whether you qualify for accident forgiveness varies depending on the insurance company you work with and the policy you carry.
“Some carriers qualify policies based on how long you have been with that carrier – five years is a pretty common threshold,” says Greg Martin, president of Think Safe Insurance in Brandon, Florida. “Other carriers may offer faster accident forgiveness as a benefit in a coverage package that the carrier offers.”
For example, Progressive customers who have been with the company for at least five years and stayed accident-free for at least five consecutive years qualify for its accident forgiveness program.
Most insurers use a five-year window, though some set it to a shorter or longer period.
Do car insurance companies forgive accidents?
Some insurers will forgive your first accident without purchasing accident forgiveness coverage. However, it’s often included in your premium upfront. In other instances, you can purchase it as an optional add-on.
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 three years; some will forgive one every six years; and some will waive one per driver 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, 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.
Car insurance companies that offer accident forgiveness
Most major car insurance companies offer accident forgiveness, but the terms vary. For instance, Progressive requires five years with the company and five accident-free years before you qualify. Ask your insurer for its specific rules before assuming you’re covered. Below are 10 major insurers that offer some form of accident forgiveness:
- Allstate
- American Family Insurance
- Erie Insurance
- GEICO
- Liberty Mutual
- Nationwide
- Progressive
- The Hartford
- Travelers
- USAA
Speak with a friendly agent and get your quote in minutes!
Is accident forgiveness coverage worth the extra cost?
If you’re a careful driver, skip the extra cost. Drive carefully, and if you do get into an accident, just shop around for the best rate afterward.
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 triggered by specific infractions, 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.
What is upgraded accident forgiveness?
Upgraded accident forgiveness is a paid add-on that keeps your car insurance rate from going up after your first at-fault accident, without waiting to earn the benefit. Insurers that offer accident forgiveness usually require three to five years of clean driving. Buying the upgrade gets you that protection as soon as it’s added to your policy.
GEICO, for example, lets drivers either earn or purchase Accident Forgiveness, depending on the state.
How do you know if you have accident forgiveness?
Look at your policy declarations page, contact your agent or sign into your insurer’s online portal to find out if accident forgiveness is included in your policy. Many insurers add this feature automatically if you have a clean record for three to five years, so you might already have it even if you never requested it.
Can you buy accident forgiveness after an accident?
Accident forgiveness coverage must be purchased before an accident occurs. This add-on coverage or earned inclusion must be part of your policy before your accident. Additionally, it typically can’t be bought within a specific time period after a previous accident.
However, if your policy includes accident forgiveness as part of your good driving record, you would be covered if you were involved in an accident.
The bottom line
While accident forgiveness can be an excellent optional add-on protection, it may not be necessary. If you’ve been a good driver for three to five years, your insurance company may already have a first-at-fault accident forgiveness built into your policy.
However, purchasing accident forgiveness could be worth the cost if you want that peace of mind. Ask your current insurer whether you already qualify, or compare quotes from a few insurers that offer it to see which one offers the best deal.
Frequently asked questions
Does accident forgiveness apply to every accident on my record?
No, accident forgiveness usually applies only to your first at-fault accident after a long period of safe driving. After you use it, your insurance company will handle your next at-fault accident as usual, which could result in a higher premium and any additional charges.
How much more does accident forgiveness coverage cost?
The price varies based on your insurance company and your driving record, so there is no fixed amount. Compare the extra cost of accident forgiveness with the surcharge after an at-fault accident. If the coverage costs less than the surcharge, it may be worth it.
Does accident forgiveness keep the accident off my record entirely?
No. Accident forgiveness only changes your insurance premium, not your driving record. The accident will still appear on your record. Forgiveness simply means your insurer will not increase your rate because of it.
Is accident forgiveness worth it if I have a clean driving record?
Yes, it can be. If you have a clean driving record, you’ll usually pay less for accident forgiveness, and it helps keep your current rate if you ever have an accident. Look at how much the coverage costs compared to what your surcharge might be to see if it makes sense for you.
Still have a question? Ask our experts
Get advice from an experienced insurance professional. Our experts will help you navigate your insurance questions with clarity and confidence.
Browse all FAQs
