Do You Need Accident Forgiveness Insurance?

Mar 15, 2020 at 10:46am ET

By: Motor1.com Team

Everything you need to know about accident forgiveness is right at your fingertips.

If you cause a car accident that results in a claim, your insurance premium will rise significantly over the next few years. But if you have accident forgiveness insurance with one of the nation’s best car insurance companies, you may be in the clear. In this article, we'll focus on what accident forgiveness insurance is and what it isn't, as well as which top insurance companies provide accident forgiveness.

Read on to find out everything you should keep in mind when shopping for auto insurance with accident forgiveness insurance. Enter your zip code in our tool below or call (844) 246-8209 to compare quotes:

In this article:

What Is Accident Forgiveness Insurance?
What Is Not Covered By Accident Forgiveness Insurance?
Best Accident Forgiveness Insurance Providers
Recommended Providers With Accident Forgiveness Insurance
FAQ About Accident Forgiveness Insurance

What Is Accident Forgiveness Insurance?

Accident forgiveness insurance is an additional coverage that can be added to your standard car insurance policy. This insurance prevents your car insurance rates from going up after your first at-fault car accident. Note that not all car insurance providers offer accident forgiveness insurance.

Contrary to what some insurance agents might say, accident forgiveness insurance is not necessary for all drivers. Some drivers who purchase accident forgiveness coverage will never use it at all. It’s up to you to weigh the pros and cons against your driving record and habits to determine if this coverage is right for you.

Pros	Cons
Prevents a rate increase after your first at-fault accident	Only applies to your first at-fault accident
Peace of mind while driving	Not all insurance companies provide the option of accident forgiveness
	Coverage is not available in all states
	Not all drivers end up using accident forgiveness coverage

What Is Not Covered By Accident Forgiveness Insurance?

While accident forgiveness is a great way to save money, it doesn’t apply to every driver in any accident situation.

Car accidents can cost you time and money long-term on your auto insurance rates and short-term for the cost of repairs. To make recovering from an accident easier, it’s important to shop around for car insurance with accident forgiveness on your mind. But it’s equally important to keep in mind what this type of insurance doesn’t cover:

If your incident involves a DUI or DWI, your insurance company will not overlook the accident and can raise your rates.
After an accident, you could still lose discounts you were previously eligible for with your insurance, like safe driver discounts and no-claims discounts.
Once you’ve used your accident forgiveness insurance once, it’s usually gone. But you should check the terms of your coverage with your insurance agency. It is generally possible to become eligible again after a number of years spent driving safely.
Finally, no matter the circumstances of the accident or the forgiveness you receive from your auto insurance provider, the accident will stay on your driving record. This means that if you switch car insurance providers, the accident will be considered when the new company calculates the cost of your premium.

One important note for motorists in California: Even if you have a clean driving record, accident forgiveness insurance is not an option in your state. Ever since Proposition 103 was passed in 1988, California insurers haven’t been able to offer accident forgiveness in any of their coverage plans or as an add-on. This piece of legislature outlawed excessive charges and determined that charging drivers with clean records extra for accident forgiveness was “excessive.”

Best Accident Forgiveness Insurance Providers

Here is a list of 10 top car insurance providers that offer accident forgiveness. Some companies may not offer accident forgiveness in all states.

Accident Forgiveness Insurance Provider	Details of Coverage
1. Progressive Auto Insurance	You’ll get small accident forgiveness from Progressive as soon as you become a customer. Large accident forgiveness is available for drivers who have been with Progressive for at least five years and who have been accident-free for three years.
2. Liberty Mutual Car Insurance	All drivers who have been accident- and violation-free for at least five years are eligible for accident forgiveness insurance, which can be purchased as an add-on. Liberty Mutual will even cover you if your years of safe driving were spent with another insurer.
3. Farmers Auto Insurance	Drivers qualify for accident forgiveness insurance for every three years that they drive safely.
4. Geico Auto Insurance	Accident forgiveness insurance is a good driving reward for long-time members with Geico. Accident forgiveness can also be purchased for an additional cost if you want protection from the start (available in most states).
5. USAA Car Insurance	Accident forgiveness is included for policyholders who have been with the provider for five years in most states. An important note about this company is that auto insurance is only available to members of the United States Armed Forces, veterans, and their families.
6. Travelers Auto Insurance	Travelers provides accident forgiveness as an add-on under the Responsible Driver Plan. The plan covers one accident and a driver’s first moving violation, and for every three years of safe driving, the driver becomes eligible again. Alternatively, the Premiere Responsible Driver Plan gives drivers a $50 credit every six months they go without an accident or moving violation to be put toward their deductible, up to $500.
7. Allstate Auto Insurance	Accident forgiveness with Allstate starts the day that you purchase accident forgiveness coverage in most states.
8. AAA Car Insurance	AAA accident forgiveness protects your rates from going up after an accident, and a disappearing deductible policy puts a $50 credit toward your deductible for every six months of safe driving.
9. The Hartford Auto Insurance (AARP)	This auto policy covers members of the American Association of Retired Persons and will forgive accidents for any member who has maintained a clean driving record for the past five years.
10. Nationwide Car Insurance	Accident forgiveness is provided in select states as an add-on option. It can be applied to any driver on your policy, but each policy only gets one.

Recommended Providers With Accident Forgiveness Insurance

When you’re shopping for a car insurance company with accident forgiveness insurance, you should consider Progressive and Liberty Mutual. Both providers performed well in our study of top auto insurers, earning 4.5 and 4.0 stars respectively.

Progressive Car Insurance

Progressive car insurance is a good option for drivers in their 20s and people with a DUI in their driving history. Progressive is one of the top insurance providers in the U.S. It has positive online reviews from satisfied customers and high ratings from reputable industry professionals. To learn more, read our Progressive car insurance review.

Progressive insurance offers small accident forgiveness insurance for members with good driving records from the start of their policy. The cost can vary depending on your state. After you have been with Progressive for five years and been accident-free for three years, you may qualify for large accident forgiveness.

To get an online quote from Progressive, you need your driver’s license information, vehicle information, ticket history, and current coverage (if you have it). You’ll have the opportunity to compare quotes from other insurance providers with Progressive side-by-side.

Liberty Mutual Insurance logo

Liberty Mutual Auto Insurance

Liberty Mutual insurance is also a strong contender when considering policies with accident forgiveness auto insurance. In addition to standard car insurance coverage including liability and collision, the company offers the following types of coverage:

Towing and labor
Roadside assistance
New car replacement
Better car replacement

Liberty Mutual has an extensive rewards program that offers many discounts, including multi-policy discounts, that can help you get a lower rate on car insurance. Check out our review of Liberty Mutual auto insurance to learn more about the provider.

Enter your zip code in the tool below or call our team at (844) 246-8209 to start comparing cheap car insurance quotes:

FAQ About Accident Forgiveness Insurance

How does an at-fault accident could affect your premium?

Your car insurance rates are determined by many factors, including location and driving behavior. A report from insurancequotes.com explains that drivers who make one claim per year end up paying an average of 41 percent more for auto insurance. Drivers who make two claims in a year could be looking at a 93 percent hike in the cost of their premiums.

With accident forgiveness insurance, your rates will not increase as the result of an at-fault auto accident. A driver with an otherwise clean driving record will have their first claim covered and see no change on the cost of their premium.

Drivers with first accident forgiveness who have already used their accident coverage and need to make a second claim will see an increase in their auto insurance rates. This hike could be up to 41 percent, as if the first accident had never happened.

How do I qualify for accident forgiveness insurance?

Your qualification depends on your insurance provider. Typically, a driver without any accidents or major moving violations in the past three to five years will qualify for accident forgiveness.

You cannot get accident forgiveness insurance to cover an auto accident you’ve already been in or caused. Even if you are switching insurance providers or buying your first insurance coverage, any car accidents you’ve been in will remain on your driving record and could disqualify you for discounts and accident forgiveness coverage.

How much does accident forgiveness insurance cost?

The cost of accident insurance will depend on many things, including your insurance provider and driving habits. Some auto insurance companies include accident forgiveness in their plans, while others offer it as an additional perk that can be purchased. Speak to your insurance agent to get a quote on accident forgiveness insurance.