How Does Accident Forgiveness Work?
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Accident forgiveness is an insurance feature that protects drivers against car insurance rate hikes after an accident. You can often add this feature as an optional rider (an add-on to your existing policy), or you might qualify for free accident forgiveness after you've gone a few years without getting in an accident.
What is accident forgiveness?
Accident forgiveness prevents your car insurance rates from going up if you cause a car crash.
Drivers who cause an accident may see a 33% increase in car insurance rates for the next three to five years, until the crash is dropped from their driving record. With accident forgiveness, drivers can avoid that insurance rate hike.
When determining your rates, insurance companies consider many factors, including your age, vehicle, location and driving history. Experienced drivers with clean driving records can qualify for substantial discounts and cheap annual rates. But a driver who causes an accident could simultaneously lose those discounts and face higher rates for being considered a risky driver.
How accident forgiveness works
Let's say you have a claims-free or safe driving discount that lowers your car insurance rate by 10%.
If you were to cause an accident, you would lose your discount for being a safe driver. Plus, when your policy renews, your insurance company would also likely charge you higher rates for having an accident claim on your driving record. The increase typically lasts for three to five years.
However, with accident forgiveness, your rate wouldn't increase for causing an accident. While you may still lose the accident-free discount, your insurer would not apply an additional rate increase for the recent accident.
Accident forgiveness conditions
- Even if you have accident forgiveness, any accidents you cause will still show up on your driving record. If you switch to a different car insurance company within a few years of the collision, that accident may negatively affect your rates.
- Accident forgiveness benefits usually only apply to one at-fault accident. After your accident forgiveness has been used, a second accident could increase your premiums.
- After the accident, you may become eligible for accident forgiveness again after a few years of accident-free driving, but some companies only let you use accident forgiveness once per policy.
- Accident forgiveness is not offered by every insurance company and might not be available in every state.
How do I qualify for accident forgiveness?
Most companies require you to maintain accident-free driving status for several years with that company before you can earn free accident forgiveness. Other companies let you purchase accident forgiveness as an upgrade when you start your policy.
Company | Buy or earn | Claim-free period | Availability |
|---|---|---|---|
| Allstate | Buy | 3–5 years | Not in every state |
| Farmers | Buy | 3 years | In all states |
| Geico | Buy or earn | 5 years. Must be over 21 in some states | Not in CA, CT or MA |
| Liberty Mutual | Earn | 5 years at any insurer | Not in CA |
| Nationwide | Buy | Onetime use. Covers one accident across all drivers on your policy | Not in every state |
| Progressive | Buy or earn | Free small accident forgiveness for claims under $500. Buy or earn large accident forgiveness after 5 years | Not in every state |
| Travelers | Buy | 3–5 years. Covers one minor violation and one accident | Not in every state |
| Erie | Earn | 3 years | Not in every state |
| USAA | Buy or earn | 5 years | Not in CA or NC. CT and DE may be subject to different rules. |
Safe driving discounts and savings like accident forgiveness
In addition to accident forgiveness, insurance companies offer several other benefits for drivers with clean driving records.
- Accident-free discount: Some insurance companies, such as State Farm, offer a discount in certain states for remaining accident-free for three years. This discount may increase over time with a clean driving record.
- Vanishing deductibles: For every year without an at-fault accident, your insurance company may lower your deductible by a specified amount. For example, the standard deductible for Allstate drivers is $500. However, for each year you drive without an accident, Allstate may reduce your deductible by $100. So, if you have an accident after three years of safe driving, your deductible may be only $200.
- Good-driving discount: You'll typically see a discount on your quote or policy for avoiding tickets, accidents and claims. You could see it as a credit on future premiums.
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