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Car accidents usually raise your insurance rates, particularly if you caused the wreck. You can proactively prevent this rate increase by adding accident forgiveness protection to your policy.
Accident forgiveness can be a paid feature, and the cost is not always worth the benefit. The value to you depends on your driving record and driving habits. Learn how to assess that value with this review of how accident forgiveness works. We'll also cover which major insurance companies offer accident forgiveness and alternatives for keeping costs low without upgrading your policy.
Learn more: What to do after an accident: your step-by-step guide
How does accident forgiveness work?
If you have accident forgiveness on your auto insurance policy, your rates won't go up because you had an accident. Some insurance companies offer accident forgiveness for free as a reward for being a good driver. Other companies charge for the added protection.
Each insurance company sets its rules for this coverage, but you can expect limitations, such as the following:
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You can likely be forgiven for only one accident per six or 12 months, no matter how many drivers and cars are on the policy.
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Forgiveness may apply only when the accident's total damage costs are below a threshold.
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Eligibility may be limited based on where you live, your driving record, how long you've driven without an accident, or how long you've been a customer with that insurance company. Certain states, including California, prohibit accident forgiveness protection. Some insurance companies only offer accident forgiveness protection to drivers with no accidents. Others require no accidents in the past six months. Still others only offer this protection to drivers who've been customers for five years or more.
Learn more: Most common types of car insurance explained
Some insurance companies offer more than one level of accident forgiveness. For example, there might be free protection for small accidents with the option to upgrade for a fee. An upgrade would extend forgiveness to larger accidents with higher damage thresholds. Once you have an accident, you can remove the paid upgrade from your policy.
Know that your insurance costs can still increase when you have accident forgiveness. That’s because your insurance provider considers many factors when setting your rates. Accident forgiveness just ensures that your premiums aren’t increasing because of a qualifying accident.
How much does car insurance increase after an accident?
The amount your premiums increase after an accident depends on your insurance provider, location, coverage limits, and other factors. You could see your premiums rise by 30% to 70% or more.
Learn more: How much does car insurance increase after an accident?
How long do accidents stay on your record?
At-fault accidents usually affect your auto insurance premiums for three to five years after the crash. The exact timeline varies by insurance company and where you live.
You will probably see a larger rate increase the first time you renew your policy after the accident. From there, your rates will gradually decline — assuming you avoid more accidents, moving violations, and claims. Any of these issues could extend your timeline for higher rates.
Accident forgiveness insurance options
The table below lists six major insurance companies that offer accident forgiveness and key terms for each.
Is accident forgiveness worth it?
Paid accident forgiveness may be worth it if you have a clean driving record now, you spend a lot of time on the road, and you don't mind paying more to protect your lower rates. The cost of this coverage is usually less than the increase you will see after causing an accident, and it does provide some peace of mind. No matter how safely you drive, there is a chance you will make a mistake, especially if you drive frequently or in high-traffic areas.
If your insurance company offers free accident forgiveness protection, it’s usually added to your policy automatically. You can always call your provider to ensure you’re taking advantage of this perk.
More ways to manage costs after an accident
Following an accident — especially one that has impacted your premiums — there are things you can do to lower your insurance costs over time. Strategies include:
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Drive safely and legally. Maintaining a clean driving record is paramount. Accidents contribute less to your rates as time passes, but new wrecks or tickets will offset that benefit.
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Use a drive-tracking app. Some insurance companies offer discounts for using an app or device that monitors your driving, called telematics devices.
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Pay your bills on time. In some states, insurance companies can use your credit history as a rate-setting factor. Use this to your advantage by paying your bills on time.
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Bundle policies. Several insurance companies offer discounts to customers who have more than one policy. If you also insure a boat, recreational vehicle, or home you own or rent, look into consolidating your policies with one provider for lower rates.
Learn more: Bundle home and auto insurance: Be sure it’s the best deal
With auto insurance premiums rising, accident forgiveness coverage could be a strategy to minimize future rate increases. Whether you accept free accident forgiveness from your insurance company or upgrade to a paid version, you should be insulated from rate increases for one at-fault accident. Combine that with safe driving habits to keep your insurance rates low for the long term.
Tim Manni and Amy Danise edited this article.
Catherine Brock contributed to this article.
