Accident forgiveness is an optional add-on to your auto coverage offered by some insurers that prevents your insurance rate from increasing after an at-fault accident. If your policy includes accident forgiveness, the insurer will “forgive” you, which can be cost-effective for higher-risk drivers or policyholders who might otherwise face higher rates, and it may be earned through payment, loyalty perks, or safe driving. Eligibility rules, state availability, and usage limits can apply, so coverage is not always guaranteed.
You can usually obtain accident forgiveness by:Some car insurance companies allow both scenarios: They offer accident forgiveness as a perk for loyal customers who have been accident-free for a specific amount of time, as well as a paid option for others who want to purchase this feature.
Once you've added accident forgiveness to your car insurance policy, you simply drive as usual. If you happen to be in an accident, you'll report the details to your insurance company. The specifics of what happen next depend on your insurer and state regulations. Typically, accident forgiveness coverage keeps yourrate from increasingas a result of an accident that's determined to be your fault.
The biggest benefit of accident forgiveness is that you won't see an increase in your premium after an at-fault accident. The savings could be significant, depending on the severity of the crash, the cost of the claim, and the rest of your driving history.
Knowing that you have accident forgiveness may also provide peace of mind in the stressful moments and days after an accident.
Accident forgiveness may not always be worthwhile, depending on the specifics of the feature offered by your insurer. It's important to fully understand the eligibility requirements and limitations so you understand when this feature will apply and how much it could help you save. For example, GEICO applies accident forgiveness per policy, not per driver. So if you have multiple drivers on your policy, only the first accident is eligible for forgiveness—not the first accident for each driver.
Accident forgiveness isn’t available in every state, nor is it offered by every insurance company. Even if it's available, you may not qualify. At Liberty Mutual, you must be accident-free for at least five years to add accident forgiveness to your policy.
Typically, once you use your accident forgiveness coverage, you'll need to wait a certain amount of time before you can requalify.
Accident forgiveness doesn't remove the accident from your driving record. If you switch to a different insurance company, that accident will be visible—and may impact your premiums.
If you've been with your current insurer for at least a few years, ask your agent if you can get it as a loyalty courtesy. If you’re shopping for a new policy and this feature is appealing, get a few different quotes to see how it works at various insurers and what it costs at each one. Then compare your options and decide if it's right for you.
Accident forgiveness is an optional feature that can help keep your premium from rising after an at-fault accident. Weigh the added cost against possible savings, especially if you or a family driver has a higher-risk record. Availability and eligibility vary by insurer and state, so review the rules and decide whether it makes sense for your situation.