Best Accident Forgiveness Companies

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 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.

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.

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.

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.

Yes, Allstate has accident forgiveness as part of its optional Gold and Platinum auto insurance packages. Gold-level Allstate accident forgiveness applies to one at-fault accident per policy every three years, while Platinum-level accident forgiveness is not limited to a certain number of accidents.

How Allstate Accident Forgiveness Works

Allstate accident forgiveness allows customers to avoid any accident surcharges that would normally apply to their premium after filing a claim related to a collision. Allstate accident forgiveness also lets you keep any discounts you were eligible for prior to the accident, including a safe driver discount. But since Gold-level forgiveness is per-policy, members of a household who share one policy cannot have different accidents forgiven. On the other hand, Platinum forgiveness is unlimited, so multiple people on the same Platinum policy can be forgiven for separate accidents. One driver with a Platinum policy could also have several accidents herself and have them all be forgiven.

However, having Platinum-level accident forgiveness from Allstate is not an excuse to drive recklessly. Platinum customers cannot be downgraded from a Platinum policy to a lower level, but Allstate reserves the right to not renew the policies of customers whose driving habits suggest that they are unacceptably risky to insure.

Because of the added accident forgiveness, Gold and Platinum packages are more expensive than the “Silver,” or standard, level of coverage that most customers purchase.

Another Form of Allstate Accident Forgiveness

Both the Gold and Platinum packages from Allstate also include a deductible rewards program. This perk lowers a customer's collision deductible by $100 on the day they enroll. The collision deductible then decreases by another $100 for every 12 months without a chargeable accident (an accident that would usually lead to a rate increase).

In certain states, the deductible cannot be less than $100, and the deductible decrease is limited to $500 overall. The deductible decrease is also earned, used, and lost at the policy level, meaning that it cannot be applied to multiple accidents.

The cost of Gold and Platinum Allstate packages differs by state and individual driver. In addition, Allstate accident forgiveness is not available in California due to state laws. You can call Allstate or get a quote online to determine the exact price of Allstate accident forgiveness for your individual circumstances.

State Farm has accident forgiveness for drivers who have been State Farm customers for nine years with no accidents on record. State Farm accident forgiveness allows qualifying drivers to avoid surcharges and keep their accident-free discount after one at-fault accident per policy.

Requiring customers to be accident-free for nine years makes State Farm unique among major insurers. Most competitors only require three to five years without accidents to qualify for accident forgiveness.

Without accident forgiveness, an at-fault crash leads to an average premium increase of 56% for State Farm customers. However, it's important to note that State Farm accident forgiveness is state-specific and is not available everywhere. Contact a State Farm agent in your area for more information on your eligibility.

Yes, USAA has accident forgiveness for car insurance customers. USAA accident forgiveness is available at no added cost to drivers who have had USAA auto insurance for the past five years without any at-fault accidents. Qualifying customers get accident forgiveness automatically applied to their policy.

In some states, USAA customers who do not qualify for loyalty-based accident forgiveness can purchase forgiveness coverage instead. Purchased accident forgiveness provides the same benefits as loyalty-based accident forgiveness, but is available for newer USAA customers as an optional add-on.

USAA accident forgiveness is per policy, not per driver. As a result, if one driver on a shared policy caused an accident in the past five years, the other drivers on the policy cannot have separate accidents forgiven. It's also worth noting that USAA accident forgiveness is not available at all in Connecticut, Delaware, North Carolina, California or New York.

For more information on whether you qualify for USAA accident forgiveness, contact USAA or get a quote online. But before you do so, check out WalletHub's USAA Insurance Review and read about how to decide if accident forgiveness is worth the extra cost.

Yes, Travelers offers accident forgiveness, which forgives one at-fault accident every three years. Travelers accident forgiveness is available as part of the company's Responsible Driver Plan and Premier Responsible Driver Plan, which are optional protection plans customers can buy. Prices for these plans vary depending on your location, as well as other factors like your driving history and the coverage options on your policy.

In addition to accident forgiveness, the Travelers Responsible Driver Plan includes a minor violation forgiveness benefit that forgives one small infraction (like a traffic ticket) every three years. The Premier Responsible Driver Plan also offers accident forgiveness and minor violation forgiveness benefits, as well as a decreasing deductible benefit and a total deductible loss waiver.

Although accident forgiveness is not an automatic benefit with Travelers, it may be worth it if you're worried about your rate going up in the event of a mishap on the road. It will keep your insurance premiums from rising, even though the accident will still be recorded on your driving record. However, accident forgiveness and violation forgiveness are not available in California.