Am I eligible for accident forgiveness insurance?

You should get accident forgiveness if it’s included at no extra cost or if the added peace of mind outweighs the price, especially for any high-risk drivers on your policy. Accident forgiveness car insurance is available from many insurers and usually prevents one at-fault accident from increasing your premium every three years.... read full answer

Some car insurance companies include accident forgiveness as a free loyalty perk for long-time customers. Others charge extra for it. And if it’s only available for purchase, you should carefully weigh its costs and benefits in the context of your specific circumstances to determine whether or not purchasing accident forgiveness is worth it.

When It Might Be Worth It to Pay for Accident Forgiveness

• You are a high-risk driver or have a history of at-fault accidents or claims.
• You have a teen driver on your policy.
• You drive more miles than the average driver.
• You live in an area with plenty of traffic and accidents.
• Your premium would increase significantly if you got into an at-fault accident.

Part of determining whether accident forgiveness is worth it is to consider the alternatives. An at-fault accident will raise car insurance premiums by 20% to 40% on average. The exact increase depends on the company, location, and the amount the insurer has to pay for the accident. In most cases, this price increase will remain for three years. However, an at-fault accident can sometimes disqualify you from a good driver discount for 5-10 years, costing you extra.

The types of drivers on your policy are important, too. High-risk and young drivers are especially likely to need accident forgiveness. However, it’s important to note that many insurers require a few years of driving experience without accidents in order to qualify for accident forgiveness. So you should be sure to read the fine print to see if you and other named drivers on your policy are eligible.

Drivers should also consider risk factors besides age. For instance, drivers who live in areas with poor road conditions and high accident rates are more likely to need accident forgiveness. More hours on the road means a higher chance of causing an accident as well. Similarly, driving at night or while tired is particularly risky.

In short, customers should be honest about their risk factors and driving habits when deciding whether or not to get accident forgiveness. Drivers should also be aware of the nuances of their insurer’s accident forgiveness policy.

Conclusions

Regardless of whether you are a safe or risky driver, remember that accident forgiveness programs have different exceptions. Some do not forgive new drivers’ accidents. Others still raise rates if an accident is deemed intentional, which sometimes includes DUI-related crashes.

If you are considering purchasing accident forgiveness car insurance, it’s best to compare quotes with and without accident forgiveness. Then, compare the additional cost of accident forgiveness with how much your premium would increase if you cause an accident. Finally, consider your personal circumstances and whether the peace of mind of accident forgiveness is worth the expense.

Accident forgiveness resets after 3-5 years with most insurance companies. Loyalty-based accident forgiveness, which does not cost extra, normally requires drivers to go five years without at-fault accidents to get an accident forgiven, while accident forgiveness policies that drivers can purchase usually take three years to reset. Timeframes vary by insurance company, though.... read full answer

How Long Accident Forgiveness Takes to Reset, by Company

• Progressive: 3 years
• Farmers: 3 years
• Travelers: 3 years
• Allstate: 3 years
• Geico: 5 years
• Liberty Mutual: 5 years
• USAA: 5 years
• State Farm: 9 years

The time it takes for accident forgiveness to reset can differ from the time it takes to qualify for accident forgiveness originally. For instance, although Progressive accident forgiveness resets after three years, drivers must be a Progressive customer for five years to qualify in the first place.

Policies from the same company aren’t always handled the same way, either. For example, Allstate’s Gold auto insurance package includes accident forgiveness that resets every three years, while its Platinum package forgives an unlimited number of accidents.

Yes, you can switch car insurance after an accident, or any time you choose. You don’t have to wait until your policy is up for renewal to switch car insurance companies, and you can even change insurers if you have an open claim.

What Happens If You Switch Insurers After an Accident?... read full answer

There's no penalty for switching car insurance companies after an accident, in particular, but you may face cancellation fees from your current insurance company for stopping your policy early. You’re also less likely to save money switching car insurance companies right after you have an accident, as your rate will include your latest mishap on the road. In other words, you can’t switch insurance companies to avoid being held accountable for the accident.

Also, keep in mind that if you cause an accident, the insurance provider you had at the time of the accident will still be responsible for handling the claim, even if you cancel their coverage and switch companies. You can’t switch insurance providers after an accident to have a new company manage the claim.

What to Do Before Switching Car Insurance Companies

Switching car insurance providers on the same day you have an accident might be viewed as suspicious by some insurance companies, so it’s best to wait at least until the claims process begins before switching. You might even want to wait until the process is complete, so you don’t have to deal with two car insurance companies simultaneously.

In addition, if you decide to switch car insurance providers, be sure to have your new policy in place before canceling your old policy. It’s better to have an overlap of policies for at least a day than it is to have a gap of even one day between auto insurance policies. A gap in your insurance history will be viewed poorly by insurance companies, and it’s against the law to drive without adequate insurance coverage.