What is Accident Forgiveness?

How It Works

  • Prevention of Premium Increase: Normally, if you’re at fault in an accident, your insurance premiums may increase. With accident forgiveness, your rates stay the same.
  • First At-Fault Accident: This feature generally applies to your first at-fault accident only.
  • Policy Eligibility: Not all policies include accident forgiveness. It may be offered as an add-on or a benefit for long-term customers.

Benefits of Accident Forgiveness

  1. Financial Stability: Protects against sudden increases in insurance costs.
  2. Stress Reduction: Reduces the worry associated with potential rate hikes after an accident.
  3. Reward for Safe Driving: Often offered as a reward for a good driving record.

Without the protection of accident forgiveness, the impact on your insurance rates after an accident can differ. Based on nationwide data from Progressive, a single at-fault accident can lead to an average increase in premiums of as much as 28%.

Considerations Before Opting In

  • Availability: It’s not available in all states or with all insurers.
  • Cost: Some insurers charge extra for this feature.
  • Eligibility Criteria: Insurers often have specific requirements for eligibility, like a clean driving record for a certain number of years.

Is It Right for You?

  • Driving Record: If you have a history of safe driving, this feature can be beneficial.
  • Cost-Benefit Analysis: Weigh the additional cost against the potential rate hikes in case of an accident.
  • Insurance Comparison: Compare with other insurance plans to find the best fit for your needs.

Accident forgiveness can be a valuable feature for drivers looking to protect themselves from rate increases following their first at-fault accident. However, it’s important to consider the eligibility criteria, additional costs, and your own driving history before adding it to your policy.


 Q: Does accident forgiveness apply to all types of accidents?

 A: Generally, it applies to your first at-fault accident, but terms can vary between insurers.

 Q: Can accident forgiveness be lost?

 A: Yes, if you’re involved in subsequent at-fault accidents, the benefit usually applies only to the first one.

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