Accident forgiveness is a car insurance feature that prevents the policyholder’s premium from going up after their first car accident within a certain period of time. Some car insurance companies offer accident forgiveness as a free benefit to loyal customers, while other insurers charge for accident forgiveness. Each insurer with accident forgiveness has its own eligibility requirements.
Key Things to Know About Accident Forgiveness:
- Accident forgiveness works by preventing your premium from going up after your first at-fault accident in a certain timeframe.
- Most major insurance companies offer accident forgiveness.
- Insurance companies offer accident forgiveness as a paid product, a loyalty add-on, or a hybrid of both.
- If you have to pay extra for accident forgiveness, it might not be worth it if you practice good driving habits and have never been in an accident.
- Alternatives to accident forgiveness include vanishing deductible programs, high-deductible policies, and savings from car insurance discounts.
Is Accident Forgiveness Worth It?
Accident forgiveness is worth it if you frequently get into accidents or if your insurance company offers it for free as a loyalty perk. If you have to pay extra for accident forgiveness, it will likely raise your rates by anywhere from 2% to 9%. However, considering that a claim of $2,000 or more raises rates by an average of 41%, it’s a worthy investment for accident-prone drivers.
Unless you can get it for free, accident forgiveness is not worth it if you’ve never had an accident and consistently drive safely.
Types of Accident Forgiveness
- Paid Insurance Product – Some companies, such as Nationwide, offer accident forgiveness as an add-on option. Others incorporate the feature into a larger package, such as Allstate’s “Your Choice Auto” Gold and Platinum packages.
- Customer Loyalty Service – If you are a long-term safe driver, your insurance company may recognize your loyalty and driving history with no-cost accident forgiveness.
- Hybrid Product and Service – Some companies offer a paid accident forgiveness product to new and less safe customers and give free accident forgiveness to long-term customers with a record of safe driving.
The accident forgiveness programs offered by most insurers generally fall into these three categories.
Best Accident Forgiveness Insurance Companies
Allstate
Allstate accident forgiveness is available as part of Allstate’s Gold and Platinum “Your Choice Auto” packages. The cost of these packages varies by state and driver.
Details
- With the Gold package, each policy can have one accident forgiven every three years.
- The Platinum package allows an unlimited number of accidents to be forgiven.
- No accident surcharge will be added after a forgiven accident.
- With enrollment in the Platinum program, a customer can keep their safe driver discount after a forgiven accident.
- The Platinum program includes a diminishing deductible feature, which lowers a customer’s deductible by $100 for every year of safe driving, up to a maximum reduction of $500.
- A customer must qualify as a good driver to receive accident forgiveness (rules vary by state).
- Allstate accident forgiveness is not available in all states.
Geico
Geico accident forgiveness is free for qualifying safe drivers after five years. Drivers can also purchase it as a supplemental coverage option, although the cost varies by state.
Details
- One accident can be forgiven every 3-5 years, depending on the state.
- Drivers must be accident-free for five years in order to qualify for free accident forgiveness.
- Accident forgiveness can be purchased as a policy add-on by drivers who meet certain driving-record requirements. Specific requirements vary by state.
- Your premium will not increase after a forgiven accident.
- No accident surcharge will be added after a forgiven accident.
- Customers can keep their good driver discount after a forgiven accident.
- Geico accident forgiveness is not available in all states.
Farmers
Farmers accident forgiveness can be purchased as a policy add-on. The cost of accident forgiveness varies by driver and state.
Details:
- Each policy can have one accident forgiven every three years.
- On policies with multiple drivers and vehicles, one accident is allowed per policy.
- Unlimited fender benders (low cost accidents under a certain threshold) are permitted.
- The customer must qualify as safe driver prior to purchasing accident forgiveness.
Liberty Mutual
Liberty Mutual accident forgiveness is free for any customer who has gone five years without a moving violation or accident.
Details:
- Each policy can have one accident forgiven every five years.
- Your premium will not increase after a forgiven accident.
- No accident surcharge will be added after a forgiven accident.
- Customers can keep their safe driver discount after a forgiven accident.
- At-fault and not-at-fault accidents may apply to accident forgiveness.
Progressive
Progressive accident forgiveness is available to drivers who have been continuously insured by any company for six months.
Details:
- No accident surcharge will be added after a forgiven accident.
- Your rate will not change after a forgiven accident.
- Customers will lose their safe driver discount after a forgiven accident.
- Progressive accident forgiveness is not offered in all states.
Nationwide
Nationwide accident forgiveness is available to purchase for drivers who have been insured by the company for six continuous months.
Details:
- Two minor violations in three years can be forgiven.
- Two at-fault accidents in three years can be forgiven.
- Unlimited fender benders (under $1,500 per claim) are permitted.
- Forgiven accidents won’t increase your premium.
- Customers will not lose their safe driver discount after a forgiven accident.
- No accident surcharge will be added after a forgiven accident.
- For policies with multiple drivers and vehicles, two accidents are allowed to be forgiven per policy.
State Farm
State Farm accident forgiveness is available to customers for free after nine years of safe driving.
Details:
- One accident can be forgiven every nine years.
- No accident surcharge will be added after a forgiven accident.
- Customers can keep their safe driver discount after forgiven accident.
- For policies with multiple drivers and vehicles, one accident per policy can be forgiven.
Travelers
Travelers accident forgiveness is included as a part of the Responsible Driver and Premium Responsible Driver plans. The cost of these plans varies by driver and state.
Details:
- One accident and one minor violation can be forgiven every three years.
- Customers must qualify as a safe driver, meaning they they’ve had no accidents or major violations in five years.
Alternatives to Accident Forgiveness
If you don’t qualify for your insurance company’s accident forgiveness program or don’t want to pay extra for it, there are other options for you to save money long-term.
Available Discounts
Insurance companies offer a wide range of discounts for their drivers, some of which could keep your rates reasonable even after an accident. For example, many insurers offer a discount if your car has certain safety features or if you pay the full cost of your policy upfront.
Vanishing Deductible
These programs decrease your deductible a certain amount each year that you’re accident free. Companies usually cap savings at a certain amount, but this can be a good option for drivers who are concerned about out-of-pocket costs after an accident. However, it usually only applies to comprehensive and collision coverage.
Low Premium, High Deductible
If you regularly practice good driving habits and rarely file a claim, you should consider raising your deductible in order to lower your premium. However, if you have had multiple accidents within the last few years or live in a high-risk area, this might not be the best idea.
Accident Forgiveness Tips
Depending on your company, policy, and state, there are still some twists and turns to navigate when it comes to accident forgiveness. Here are some things you can do to make the process easier.
1. Switch Insurers
In general, accident forgiveness by itself isn’t a good reason to switch companies if you’ve already done your research and like your rates and coverage. The one exception is if you’ve recently had an accident. If you don’t already have accident forgiveness, your current company is likely to increase your rate. However, to win your business, another insurer may be willing to forgive your most recent accident. If you can’t find one that will forgive the accident for free, you might find one that will accept you into an inexpensive accident forgiveness program.
2. Look for affordable options
Look for policies that reward safe driving with accident forgiveness as a loyalty service or offer the product as an inexpensive add on.
3. Consider the pros and the cons
While accident forgiveness is a nice perk, it is not always wise to pay extra for it. Paying for accident forgiveness can be compared to insuring your insurance, or betting against yourself. In most cases, if you are a safe driver who rarely files claims, you will rarely recoup the extra cost you pay for accident forgiveness.
4. Ask the right questions
Before paying extra for accident forgiveness, ask your insurance company about how a claim would affect your rates without this feature. Understand the circumstances under which an accident will increase your premiums and how long your rates will be affected.