Experiencing an accident can leave you shaken up and uncertain about the future of your car insurance premiums. Likely, your car insurance rates will go up after an accident. According to CarInsurance.com data, one at-fault accident with more than $2,000 in damages can increase your car insurance premium by 57% or $1,075 a year.
Accident forgiveness coverage can help you offset costs. Learn more about this coverage, including how it works, the car insurance companies that offer it and whether it’s worth the price.
- Accident forgiveness is an optional add-on coverage that protects your premiums from increasing after your first at-fault accident.
- If you’ve had a clean driving record for three to five years, your insurance company may have provided accident forgiveness into your policy.
- Accident forgiveness may not be worth the additional monthly cost, especially if you have maintained a clean driving record for years.
What is accident forgiveness?
Not only is your first accident an emotionally jarring experience, but your finances can take a significant hit. Depending on your car insurance coverage and deductible, you may have to cover out-of-pocket expenses and medical bills. This is before a likely increase to your insurance premium begins.
Many car insurance companies offer accident forgiveness programs — coverage that prevents premium increases after your first accident. Your premium should stay the same after an accident claim for damages and losses if you’ve purchased accident forgiveness.
Most accident forgiveness programs are available based on your driving record. For example, you’d be eligible to purchase accident forgiveness coverage if you’ve had a clean driving record — no accidents, speeding tickets or DUIs — for the past five years.
Who qualifies for accident forgiveness?
Whether you qualify for accident forgiveness varies depending on the insurance company you work with and the policy you carry.
“Some carriers qualify policies based on how long you have been with that carrier – 5 years is a pretty common threshold,” says Greg Martin, president of Think Safe Insurance in Brandon, Florida. “Other carriers may offer faster accident forgiveness as a benefit in a coverage package that the carrier offers.”
For example, Progressive customers who have been with the company for at least five years and stayed accident-free for at least five consecutive years qualify for its accident forgiveness program.
While most insurers include the five-year window, others impose shorter or longer terms.
Do car insurance companies forgive accidents?
Some insurers will forgive your first accident without purchasing accident forgiveness coverage. However, it’s often included in the cost of your premium upfront. In other instances, you can purchase it as an optional add-on.
The details, however, vary from company to company. Some may give you accident forgiveness immediately, while others will only do so after you’ve been an accident-free policyholder for as many as five years.
Still, others may forgive one accident per policy in three years, some will forgive one every six years, and some will waive one per driver every three years. You may also be required to have had no moving violations for three years. If you’re considering signing on for accident forgiveness, read the fine print to understand how to qualify.
Once you study that fine print, you’ll see that this feature is not usually free, even with a perfect driving history.
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Car insurance companies that offer accident forgiveness
Accident forgiveness is typically an add-on optional coverage you can purchase from most car insurance companies. However, some also offer it within their premiums and as part of their coverage service for drivers with exceptional driving records.
Most major car insurance companies offer accident forgiveness, but you should discuss it with your current insurer to see their policy and options. In most instances, you must have purchased it before or within your current policy to cover your first accident claim.
Learn more about the following car insurance companies’ accident forgiveness options and how they work from 10 of the top insurance companies:
- Allstate
- American Family Insurance
- Erie Insurance
- Geico
- Liberty Mutual
- Nationwide
- Progressive
- The Hartford
- Travelers
- USAA
Is accident forgiveness coverage worth the extra cost?
If you’re a careful driver, it may not be prudent to pay extra for accident forgiveness — you may be better off just driving with caution and then shopping for the best rates should you get into a wreck.
One way to tell if accident forgiveness is a good fit is to compare the extra cost of the perk with how much your car insurance company will hike your rate for an at-fault accident.
Each car insurance company has a surcharge schedule that outlines the percentage increase that specific infractions trigger, such as an at-fault accident. By asking your insurer for a copy of this and researching the potential rate hike for an accident, you can do the math to see if it’s worth paying extra for accident forgiveness or paying the rate increase for a wreck should you have one.
What is upgraded accident forgiveness?
When you decide that you’d like to add accident forgiveness to your insurance policy and don’t already have it included in your premium, you are choosing upgraded accident forgiveness.
Purchasing upgraded accident forgiveness can be completed by contacting your insurance company or one that offers accident forgiveness. It’s generally available during your renewal period, too.
How do you know if you have accident forgiveness?
When you’ve maintained a good driving record for a set period of time, say three to five years, your insurance company may automatically add accident forgiveness to your insurance policy. If you know you’ve been an exceptional driver with a clean record, there’s a high likelihood that a first at-fault accident will be forgiven.
Contact your insurance agent to discuss your policy inclusions to determine if you have accident forgiveness coverage. You can also log into your insurer’s website portal to review your policy for what may be covered after an accident.
Can you buy accident forgiveness after an accident?
Accident forgiveness coverage must be purchased before an accident occurs. This add-on coverage or earned inclusion must be part of your policy before your accident. Additionally, it typically can’t be bought within a specific time period of a previous accident.
However, if your policy includes accident forgiveness as part of your good driving record, you would be covered if you were involved in an accident.
The bottom line
While accident forgiveness can be an excellent optional add-on protection, it may not be necessary. If you’ve been a good driver for three to five years, your insurance company may already have a first at-fault accident forgiveness built into your policy.
However, purchasing accident forgiveness could be worth the cost if you’d like the additional coverage for peace of mind and to keep your premiums from increasing.
Frequently asked questions
Does accident forgiveness apply to every accident on my record?
No, accident forgiveness is often a one-time thing for drivers who cause an accident after years without an incident.
How much more does accident forgiveness coverage cost?
The added cost of accident forgiveness coverage varies based on the company you work with and your situation. Typically, this coverage won’t add too much to your car insurance premiums.
Does accident forgiveness keep the accident off my record entirely?
No, accident forgiveness only impacts your car insurance costs. It won’t keep an accident off of your driving record.
Is accident forgiveness worth it if I have a clean driving record?
Even if you are a safe driver, accidents can happen. If you have a clean driving record, it might be a good time to add on accident forgiveness.
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