You might have heard that your car insurance will go up if you cause an accident. By how much? According to ValuePenguin, “car insurance rates go up by an average of 49% if you cause an accident.”
But many auto insurance companies offer what’s called accident forgiveness. This coverage is meant to protect your insurance rates from going up after your first at-fault crash. So, in this article, you’ll find answers to frequently asked questions about accident forgiveness coverage, including:
- What Is Accident Forgiveness?
- How Does Accident Forgiveness Work?
- Who Offers Accident Forgiveness Coverage?
- How Much Does Accident Forgiveness Cost?
- Is Accident Forgiveness Worth It?
What Is Accident Forgiveness?
Most people are familiar with standard auto insurance coverages like liability, comprehensive and collision. But many insurance companies offer additional coverages to protect drivers in the event of an accident. And accident forgiveness is an additional coverage option offered by many auto insurance companies to do just that.
This coverage can be used for “forgiveness” — or to prevent your insurance rates from rising — after your first at-fault auto accident. Accident forgiveness is typically offered as a coverage you can purchase, or as a benefit that you qualify for once you’ve met certain requirements. Even when it’s available to purchase, however, your insurer might require you to meet certain qualifications before you’re allowed to buy it. And as a benefit, accident forgiveness is generally only offered to “loyal” (long-term) policyholders with safe and clean driving records.
Accident forgiveness is appealing to drivers for many reasons. One big reason is that most drivers have heard just how much insurance rates can go up after an at-fault accident. With car insurance rates at an all-time high, it’s understandable to seek as many ways as possible to save money on car insurance.
How Does Accident Forgiveness Work?
Let’s say you’ve already enrolled in accident forgiveness coverage through your auto insurer. Here’s how that coverage should work: Once you cause your first auto accident, your auto insurer will “forgive” you for causing the accident and filing the related claim. Because you’ve been “forgiven,” the accident won’t be taken into account when it’s time to renew your policy. This forgiveness also means that your premiums shouldn’t increase at renewal because of the accident. Of course, there still might be non-accident reasons why your insurance goes up.
Also, accident forgiveness does not prevent an accident from going on your driving record or stop any related claims from showing up on your C.L.U.E. report. And here’s a kicker: Every insurance company has its own criteria for just how much they’ll forgive. So — depending on your insurer, policy, and damages caused during the accident — you might not automatically be forgiven after your first accident.
Consider Progressive: The company offers three types of accident forgiveness options. If you’re a new customer in a qualifying state, you’ll automatically get their Small Accident Forgiveness coverage. But with this coverage, you’re only forgiven “for your first claim that’s less than or equal to $500.”
To qualify for more protection through their Large Accident Forgiveness coverage, you need to have a clean driving record and be insured with the company for at least five years. Otherwise, you’ll have to purchase their Progressive Accident Forgiveness coverage.
Let’s look at more examples and companies that offer accident forgiveness options below.
Who Offers Accident Forgiveness Coverage?
Check out a few of the largest auto insurance companies offering some type of accident forgiveness:
| Insurance Company | Accident Forgiveness Offered/Coverage Name |
| AAA | Yes; May include Small-Claim Forgiveness, Claim Forgiveness Loyalty, and/or Claim Forgiveness Ultimate coverage Read more about AAA’s accident forgiveness options here. |
| Allstate | Yes; Accident Forgiveness coverage Read more about Allstate’s accident forgiveness options here. |
| American Family | Yes; Accident Forgiveness Insurance Read more about American Family’s accident forgiveness options here. |
| Amica Mutual | No information about their accident forgiveness program(s) readily available on Amica website, but the company may offer it based on their detailed accident forgiveness overview here. |
| Auto-Owners | Yes; At-Fault Accident Forgiveness Read more about Auto-Owners’ accident forgiveness options here. |
| Erie Insurance | Yes; First Accident Forgiveness Read more about Erie’s accident forgiveness options here. |
| Farmers | Yes; Accident Forgiveness Read more about Farmers’ accident forgiveness options here. |
| Geico | Yes; Free Accident Forgiveness and/or Upgraded Accident Forgiveness Read more about Geico’s accident forgiveness options here. |
| The Hartford | Yes; Accident Forgiveness Read more about The Hartford’s accident forgiveness options here. |
| Liberty Mutual | Yes; Accident Forgiveness Insurance Coverage Read more about Liberty Mutual’s accident forgiveness options here. |
| Nationwide | Yes; Accident Forgiveness Read more about Nationwide’s accident forgiveness options here. |
| NJM Insurance Group | No information about any accident forgiveness program(s) readily available on NJM website. |
| Progressive | Yes; May include Small Accident Forgiveness, Large Accident Forgiveness, and/or Progressive Accident Forgiveness coverage Read more about Progressive’s accident forgiveness options here. |
| State Farm | No information about any accident forgiveness program(s) readily available on State Farm website. |
| Travelers | Yes; Responsible Driver Plan (including Accident Forgiveness and/or Minor Violation Forgiveness) and/or Premier Responsible Driver Plan (including Accident Forgiveness, Minor Violation Forgiveness, Decreasing Deductible, and/or Total Loss Deductible Waiver) Read more about Travelers’ accident forgiveness options here. |
| USAA | Yes; No program information readily available online, but states that, “You may be able to prevent a future accident-related premium increase by choosing the accident forgiveness coverage option we offer in most states.” Read more about USAA’s accident forgiveness options here. |
Accident Forgiveness Availability
Please note that program names and availability may be different and/or unavailable depending on where you live. If you’re shopping around for auto insurance and accident forgiveness is important to you, you can read more about many of these companies on our list of best auto insurance companies.
But if you don’t see your insurer or another company you’re interested in listed above, that doesn’t mean they don’t offer accident forgiveness. To get the most accurate information on availability for your needs, connect with your insurer of choice and ask about their offerings.
How Much Does Accident Forgiveness Cost?
What you pay for accident forgiveness will vary due to factors like your driving history, where you live and what policy you have. The cost is typically based on a percentage of your premium. When getting quotes for accident forgiveness, you can expect the cost to be around 3-5% of your premium.
This year, the average cost of full coverage auto insurance is around $1,984. At this rate, accident forgiveness should be in the ballpark of $59-99. Again though, there are many factors that can impact why you get a quote that’s outside of the estimated range.
Ultimately, the cost of accident forgiveness will vary from insurer to insurer. As mentioned, however, many companies offer accident forgiveness benefits at no monetary cost to their drivers. But these programs typically require drivers to meet specific criteria, like:
- Minimum period of time as a policyholder with insurance company offering the benefit
- Minimum period of time without any accidents (usually between 3-5 years)
- Minimum period of time without any tickets
Similar criteria may be required for people who want to pay out-of-pocket for accident forgiveness. If accident forgiveness is important to you — and to ensure you’re getting the best rate — consider shopping around and getting several quotes for your desired coverages.
Is Accident Forgiveness Worth It?
It’s great if your insurer offers an accident forgiveness benefit at no cost to you. But if you have to pay for accident forgiveness, you might be wondering whether or not it’s worth it. At the end of the day, it’s a personal choice. To help with your decision, be sure to read all the fine print of any options you’re offered. Ask your insurer questions, such as:
- Is there a claim limit on accident forgiveness? If so, what is the claim limit?
- Does accident forgiveness include one accident per covered driver? Or does it only allow forgiveness for one accident per policy?
- How many years between at-fault accidents qualify? (ex: forgiveness for one at-fault accident for every five years without an accident)
It can also be helpful to compare the yearly cost of accident forgiveness protection with your insurer’s average annual rate increase after an at-fault accident. That way, you can get an idea of how much you stand to save down the line with or without the additional coverage. Forbes did this by collecting data from a few major insurers. Here’s what they found:
• “You’d pay an amount equal to eight years of accident forgiveness with USAA car insurance to equal the $472 USAA rate hike from an accident. And remember that increase would continue for three to five years normally…
Source: https://www.forbes.com/advisor/car-insurance/accident-forgiveness/
• You’d pay what is equal to 61 years of accident forgiveness costs with Nationwide car insurance to equal the over $900 rate increase for one at-fault accident with injury.”
Ultimately, the only way to know whether accident forgiveness is worth it for you is to get quotes from insurance companies. A personal quote factors in all the individual variables that impact your rates and will give you the most accurate picture of what — if anything — you stand to gain.
Final Thoughts
Accident forgiveness can seem like a great addition to an auto policy, but it’s not for everybody. Some people don’t qualify for the additional benefit or coverage and others may simply find it’s not worth it for them.
If you qualify for the additional coverage, the best way to make your decision is by doing a bit of research with your insurer. And if it’s a must-have for you, shop around to make sure you’re getting the best deal.
