Accident Forgiveness Guide

Accident forgiveness is a feature of some car insurance policies that prevents a policyholder's premium from increasing after a single at-fault car accident within a certain time period. Depending on the insurer, drivers can purchase accident forgiveness or earn it as a reward for safe driving and company loyalty.

Without accident forgiveness, one at-fault accident raises rates by an average of 48%. A few insurance companies, such as Travelers and Nationwide, include forgiveness of minor violations like speeding tickets as well.

Insurance Companies with Accident Forgiveness

• Allstate
• American Family
• Farmers
• Geico
• Liberty Mutual
• Nationwide
• Progressive
• State Farm
• Travelers
• USAA

In most cases, accident forgiveness can only be used once every 3-5 years, even if there are multiple drivers on the policy. However, the exact length of time depends on the company. It's also worth noting that some companies will still disqualify policyholders from a good-driver discount after a crash, even if they have accident forgiveness.  

To learn more, check out WalletHub's complete guide to accident forgiveness.

You can qualify for accident forgiveness with most insurance companies by going 3-5 years without an accident or moving violation, though exact requirements vary. Some insurers allow you to earn accident forgiveness for free, while others let you purchase it as an optional policy add-on. If you've earned accident forgiveness because of your safe driving history, it's usually applied to your policy automatically.

Accident Forgiveness Eligibility by Company

Since eligibility for accident forgiveness varies by insurer, it's a good idea to check with your insurance company to see if you qualify. But in general, the following rules often apply.

 Drivers Eligible for Accident Forgiveness: 

1. Drivers who've been accident-free for at least 3-5 years.
2. Drivers who've been with the same company and accident-free for at least 3-5 years.
3. Drivers who pay for accident forgiveness.

Accident forgiveness is not available in all states. For more information, check out WalletHub's complete guide to accident forgiveness.

No, you cannot add accident forgiveness after an accident in order to get that same accident forgiven. Accident forgiveness is designed to be purchased or earned in advance, so it cannot be applied retroactively after an accident.

If you recently had an at-fault accident and want to buy accident forgiveness for future crashes, some insurers will allow you to purchase an accident-forgiveness add-on. For example, Allstate offers Gold and Platinum auto insurance packages, which are available at an additional cost and provide accident forgiveness with no eligibility requirements. On the other hand, accident forgiveness from insurers like Progressive and State Farm requires years of a clean driving record, meaning you cannot get it soon after an accident.

If you don't have accident forgiveness already, you will likely be stuck paying increased premiums after an at-fault accident. However, having an at-fault accident is a good time to compare quotes, since every insurer will raise your premium by a different amount after an accident. And keep in mind that for small amounts of damage, it might be cheaper to pay for repairs yourself than to file a claim and increase your insurance costs in the long-run.

Accident forgiveness eligibility varies by state and insurer, so call your agent or insurance company if you're wondering whether you qualify. And if you are paying higher rates due to an at-fault accident, check out WalletHub's guides to Switching Car Insurance Companies and Car Insurance Discounts.

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.

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 is free for policyholders who earn it as a reward for years of safe driving and/or customer loyalty. For drivers who choose to purchase accident forgiveness as an optional policy add-on, it usually increases premiums by up to 10%, depending on the insurance company.

Accident forgiveness is a feature of some car insurance policies that keeps rates from increasing after a policyholder's first at-fault accident over a certain period of time, usually 3-5 years. For more information, check out WalletHub's complete guide to accident forgiveness.

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.

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.

Accident forgiveness is not available in California because a 1988 law, Proposition 103, made it illegal for insurers to charge “excessive rates.” This law indirectly bars insurers from offering accident forgiveness in California since drivers would be charged higher rates to offset the cost of forgiven accidents.

Since accident forgiveness is unavailable in California, you should expect your rate to go up by an average of 69% after an accident. The good news is that your premium will usually go back down after 3-5 years, which is when insurance companies no longer consider accidents.

To learn more, check out WalletHub's guide to accident forgiveness.

No, accident forgiveness does not cover speeding tickets in most cases. Nationwide and Travelers are the only major insurance companies offering accident forgiveness that covers minor moving violations like speeding tickets.

In some states, Nationwide's accident forgiveness add-on covers 1-2 speeding tickets every three years, while you need to buy minor moving violation forgiveness separately in other states. Accident forgiveness from Travelers is part of the company's Responsible Driver Plan, which covers one speeding ticket or other small infraction every three years.

In general, accident forgiveness is an optional policy add-on or a reward for customer loyalty that prevents the policyholder's insurance premium from increasing after a crash. Details vary by state and company, though. To learn more, check out WalletHub's complete guide to accident forgiveness.

You should be eligible for accident forgiveness insurance if you have a clean driving record and have been with the same insurance company for a certain number of years (usually at least five). Some insurers, including Allstate, also allow drivers to purchase accident forgiveness without any eligibility requirements.

You see, accident forgiveness programs are divided into two groups: loyalty-based accident forgiveness for good drivers and accident forgiveness for purchase. Loyalty-based programs usually have strict requirements, while add-ons for purchase do not.

Loyalty-Based Accident Forgiveness Eligibility Requirements by Insurance Company

• State Farm – customer for nine years, with no accidents during this period.
• Progressive – customer for five years, no violations or accidents during the past three years.
• USAA – customer for five years without any at-fault accidents.
• Liberty Mutual – no accidents or violations for five years, regardless of carrier.
• Farmers – customer for three years without accidents.
• American Family – five years without at-fault accidents or major violations.

If you do not qualify for loyalty-based accident forgiveness, several major insurers allow drivers to purchase accident forgiveness as a policy add-on.

Allstate accident forgiveness is available through the company's more expensive Gold and Platinum auto insurance packages. Drivers do not have to meet specific qualifications for these Allstate packages.

For Geico accident forgiveness, drivers must meet “driving record and driving experience requirements,” but the details are undisclosed.

Similarly, Nationwide and Travelers do not specify any eligibility requirements for their accident forgiveness, which customers must purchase.

Yes, Geico offers accident forgiveness in 47 states and the District of Columbia, with the exceptions being California, Connecticut, and Massachusetts. Geico accident forgiveness protects you from increases to your car insurance premium after your first at-fault accident.

The accident forgiveness feature may only be used once. How much your premium would rise without accident forgiveness depends on your state, driving record, and claim payment amount. The increase could range from 2% to 50%, or even more for a bodily injury claim.

How to Get Geico Accident Forgiveness

There are two ways to get Geico accident forgiveness:

1. Earn it as a free upgrade. Policyholders who are 21 years of age or older can earn the upgrade by being accident-free for at least five years.
2. Purchase accident forgiveness. To purchase this protection, policyholders must meet minimum driving-record requirements. However, Geico does not specify what these minimum requirements are on its website, as the rules and coverage terms vary by state.