Nobody plans to get into a car accident, but when it happens, the aftermath can be stressful—especially when it comes to your insurance rates. One minor mistake could lead to a significant premium hike, leaving you wondering if there’s a way to avoid the financial sting.
That’s where accident forgiveness comes in.
Accident forgiveness is a feature offered by some auto insurance companies that prevents your rates from increasing after your first at-fault accident. It’s like a financial safety net, giving you peace of mind knowing that one mistake won’t break the bank.
But how does it work? Which companies offer it? And is it worth adding to your policy?
In this guide, we’ll explore everything you need to know about accident forgiveness, including which insurers provide the best options, how to qualify, and whether it’s the right choice for you.
What Is Accident Forgiveness?
Accident forgiveness is an optional (and sometimes automatic) benefit that keeps your auto insurance premium from increasing after your first at-fault accident. Normally, an at-fault accident can raise your rates by 20% to 40%, depending on the severity and your insurer.
With accident forgiveness, your insurer essentially “forgives” the accident, meaning it won’t be held against you when your policy renews.
How Does It Work?
Not all accident forgiveness programs are the same. Some insurers offer it as:
- A free perk (after a certain number of claim-free years).
- A paid add-on (you pay extra to include it in your policy).
- A loyalty reward (only available to long-term customers).
For example, State Farm offers accident forgiveness as a free benefit after being accident-free for a set period, while Allstate allows you to purchase it as an add-on.
Which Auto Insurance Companies Offer Accident Forgiveness?
Several major insurers provide accident forgiveness, but their terms and conditions vary. Here’s a breakdown of the top providers:
1. State Farm
State Farm’s accident forgiveness is automatically applied to drivers who have been accident-free for at least nine years. Unlike some competitors, you don’t have to pay extra for it—it’s a loyalty reward.
2. Allstate
Allstate offers two types of accident forgiveness:
- Gold (free after five years with no accidents).
- Platinum (paid add-on for immediate protection).
This flexibility makes Allstate a strong option for drivers who want immediate coverage.
3. Nationwide
Nationwide provides accident forgiveness as a paid add-on, but it’s only available to policyholders with a clean driving record for five years.
4. Progressive
Progressive’s accident forgiveness is unique because it’s available as both a small accident forgiveness (for minor claims) and large accident forgiveness (for more serious incidents). You can earn it after five years of safe driving or purchase it outright.
5. Geico
Geico offers accident forgiveness as an optional add-on, but eligibility depends on your state and driving history. Some policyholders may qualify for free forgiveness after five years without an accident.
6. Liberty Mutual
Liberty Mutual’s accident forgiveness is available as a paid feature, but you must have a clean record for five years to qualify.
Is Accident Forgiveness Worth It?
Accident forgiveness sounds great, but is it worth the extra cost (if applicable)? Here’s how to decide:
When It’s Worth It:
- You have a teen or new driver (higher risk of accidents).
- You live in a high-traffic area (more chances for fender benders).
- Your insurer offers it for free (no downside).
When It’s Not Worth It:
- You rarely drive (low risk of accidents).
- You have a spotless driving record (may never need it).
- The cost outweighs potential savings (compare premium hikes vs. add-on fees).
According to a study by the Insurance Information Institute, the average at-fault accident increases premiums by about 32%. If your insurer charges $50 per year for accident forgiveness, but an accident would raise your premium by $300 annually, the math favors getting forgiveness.
How to Get Accident Forgiveness
If you’re interested in adding accident forgiveness to your policy, follow these steps:
- Check if your insurer offers it – Not all companies do, and availability varies by state.
- Review eligibility requirements – Some require a clean record for several years.
- Compare costs – If it’s a paid add-on, calculate whether the long-term savings justify the expense.
- Ask about alternatives – Some insurers offer vanishing deductibles or safe driver discounts as alternatives.
FAQs About Accident Forgiveness Auto Insurance
1. Does Accident Forgiveness Cover All Accidents?
No. Most insurers only forgive one at-fault accident within a certain timeframe (usually 3–5 years). Subsequent accidents will still raise your rates.
2. Will Accident Forgiveness Raise My Premium?
Not directly. However, some insurers charge extra for the add-on. If you get it for free (like with State Farm), there’s no additional cost.
3. Do All States Offer Accident Forgiveness?
No. Some states prohibit it due to insurance regulations. Check with your provider to see if it’s available in your area.
4. Can I Add Accident Forgiveness After an Accident?
No. You must have it before the accident occurs. It’s not retroactive.
5. Does Accident Forgiveness Transfer to a New Insurer?
No. If you switch companies, you’ll lose the benefit unless your new insurer also offers it.
Final Thoughts: Should You Get Accident Forgiveness?
Accident forgiveness can be a financial lifesaver if you’re worried about a potential rate hike after a mistake. However, it’s not a one-size-fits-all solution.
Here’s what to do next:
- Review your current policy – See if accident forgiveness is included or available.
- Compare insurers – Some companies offer better terms than others.
- Assess your risk – If you’re a cautious driver, you might not need it.
At the end of the day, accident forgiveness is about peace of mind. If the thought of a premium spike keeps you up at night, it might be worth the investment. But if you’re confident in your driving skills, you could save money by skipping it.
Either way, the best defense against high insurance costs is safe driving. The fewer claims you file, the better your rates will be—with or without accident forgiveness.