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 56%.
Before you panic, you may want to look into accident forgiveness coverage and how it 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 cost.
- 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.
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 listed on the policy 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, you need to talk with agents and 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. At Allstate, for example, you get accident forgiveness by upgrading to a Gold Protection or Platinum Protection package under its Your Choice Auto plan, which can add about 8% to 15% to the cost of a standard policy, depending on the vehicle owner.
Under Gold, you’re forgiven for only the first accident. With the more expensive Platinum, your rates won’t rise even with subsequent accident claims. But, the insurer points out, you may become ineligible for Platinum if you rack up several crash claims.
Florida Car Insurance Rates by ZIP Code
Enter ZIP for average rate. Then enter Age, Gender and Coverage Level for customized rate.
Highest Rate
$129/mo.
Lowest Rate
$47/mo.
| MOST EXPENSIVE PER MONTH |
|---|
| 33012 - Hialeah: $128 |
| 33135 - Miami: $128 |
| 33013 - Hialeah: $128 |
| 33125 - Miami: $127 |
| LEAST EXPENSIVE PER MONTH |
|---|
| 32425 - Bonifay: $53 |
| 32440 - Graceville: $53 |
| 32431 - Cottondale: $53 |
| 32428 - Chipley: $53 |
CarInsurance.com commissioned Quadrant Information Services to provide a report of average auto insurance rates for a 2017 Honda Accord for nearly every ZIP code in the United States. We calculated rates using data for up to six large carriers. Averages for the default result are based monthly insurance for a male driver, age 30, for state minimum required liability coverage. Averages for customized rates are based on drivers' ages and gender for the following coverage levels: state minimum liability, liability of 50/100/50 and 100/300/100 with $500 deductible on comprehensive and collision. These hypothetical drivers have clean records and good credit. Average rates are for comparative purposes. Your own rate will depend on your personal factors and vehicle.
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 what their policy and options are. In most instances, you will need to have purchased it before or within your current policy for it 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
Figure out if accident forgiveness is worth the cost
So, if you’re a great driver with no smudges on your record, is it a good idea to pay more for the protection or take the chance that your motoring skills (or luck) will continue?
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.
Michael Barry, the chief communications officer and the head of media relations and public affairs at the Insurance Information Institute says that the III does not have an opinion on accident forgiveness, but it does have a strong position on consumer awareness.
“In our view, the policyholder needs to quiz either their insurance agent or insurance company representative about the pros/cons of accident forgiveness” before buying the provision, he says. “Education, knowing what you have and what you need, is always a great idea.”
What is upgraded accident forgiveness?
When you decide that you’d like to add accident forgiveness to your insurance policy, and you don’t already have it included in your premium, you are choosing upgraded accident forgiveness. This is the optional add-on coverage that your clean driving record qualifies you to purchase.
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.
To determine if you have accident forgiveness coverage, contact your insurance agent to discuss your policy inclusions. 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 purchased 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 a great optional add-on protection, it may not be a necessary purchase. If you’ve been a good driver for the past three to five years, your insurance company may already have a first at-fault accident forgiveness built into your policy.
However, if you’d like the additional coverage for peace of mind and to keep your premiums from increasing, purchasing accident forgiveness could be worth the cost.
Resources & Methodology
Sources
- Geico. “Learn more about accident forgiveness.” Accessed August 2024.
- Insurance Information Institute. “About us.” Accessed August 2024.
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