What is Accident Forgiveness Car Insurance

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If you have ever been involved in an accident, your car insurance rate will likely increase afterwards. The fortunate thing is that many insurance companies offer a policy benefit known as accident forgiveness. What is Accident Forgiveness car insurance, and how does it apply to you?

Accident forgiveness car insurance is an attribute that prevents your insurance premiums from increasing at renewal if you have been involved in an at-fault accident. It costs an extra fee to add to your car insurance policy and requires you to have a clean driving record for many years before you can opt-in for a car forgiveness feature.

What is Accident Forgiveness Car Insurance?

Several auto insurance companies provide accident forgiveness policies to drivers to help them save in unforeseen circumstances. This add-on coverage is an advantage to drivers who got involved in their first accidents by renouncing the increment of their insurance rate. Another good news: If you have a clean driving record, you may not have to pay any extra fee for the accident coverage.

Insurance companies offering Accident forgiveness car insurance policies have different eligibility criteria for the program. In normal terms, accident forgiveness only applies to first-time at-fault accident drivers. Not every accident can be qualified for the program, and this does not automatically remove the accident from your driving record.

According to Bankrate, if you are involved in an at-fault accident, even if the accident was forgiven with your current insurance company, a new insurance company will see the at-fault accident record on your CLUE report and is likely to add an increase in your insurance rate if the accident is within three to six years.

Who is Accident Forgiveness Car Insurance Right For?

Accident Forgiveness, car insurance coverage, is available to drivers who have a clean driving record over the last five years and more. Below is a list of drivers who can qualify for car insurance.

  • No record of accidents in the last five years, regardless of your car type.
  • No violation of policy in the last five years
  • Drivers between the age of 25 and under must have five consecutive clean record years before their accident can be forgiven.

Read Also: Best Car Insurance Companies

How to Get Accident Forgiveness

Firstly, you need to check if your insurance company is offering an accident forgiveness program because not all companies offer it. In some insurer cases, the accident forgiveness policy is added to your insurance coverage for free. This usually happens when you have used an insurer for the long term and you have a clean driving record.

For some insurance companies, accident forgiveness insurance is only available through endorsement of your policy. It will be available for you at an additional cost only if you qualify for it. If you are deliberating adding this to your policy, it is best that you contact your insurance representative or a licensed agent, who can walk you through the nit-gritty of the policy and its benefits.

How to Get Accident Forgiveness for Free?

Some companies offer accident forgiveness to their customers for free. Some of this companies that offer the program at no cost charge to reward loyal customers include:

  • Progressive: Progressive car insurance forgives small accidents that cost less than $500 in damages. This is an option available for customers in its loyalty program. However, this program is only available in a few states. How does it work? If you have been buying insurance coverage with the company for five years, Progressive will forgive your first car accident with damage of over $500 for customers in the loyalty program.
  • Erie: If you have been able to maintain a clean driving record and have been a customer with Erie for three years, Erie will automatically forgive your first accident.

Is Accident Forgiveness Worth Additional Cost?

The average national premium cost for drivers who are at fault in an accident is $954 per year, according to NerdWallet analysis. Also, each insurance company’s rate differs; some companies charge more than others. To get a good accident forgiveness rate, no matter what your record is, it is very important that you compare the car insurance rates.

What Car Insurance Providers Offer Accident Forgiveness?

There are many car insurance that provide accident forgiveness. Top insurance providers offer these features. However, the way each insurance company operates is very different based on the streets in which it is in operation. Therefore, some insurance companies may not provide accident forgiveness in every state or to all individuals seeking accident forgiveness programs. Below is the list of insurers that offer the program.

Company Accident Forgiveness Criteria
Allstate With this feature, your insurance rate will not increase after a single at-fault accident. You can contact a local Allstate agent to see if you qualify.
Progressive Progressive is one of the few insurers that automatically adds accident forgiveness to car policies in most states. It offers two types of accident forgiveness. Small accident forgiveness is if your claim is less than $500, and large accident forgiveness is if your claim is above $500. The accident forgiveness policy amount for either of the programs depends on how long you have been with Progressive. You can also buy the program.
GEICO GEICO may provide free accident forgiveness if you have maintained a clean driving record. If you have been offered a free policy, you will receive a notification of the accident forgiveness reward. Alternatively, you can purchase coverage if you qualify for it.
Erie Erie offers accident forgiveness to drivers who have been involved in a first at-fault accident. But, this is only available to loyal customers who have been with Erie for three or more years.
Travellers Travelers offers accident forgiveness by buying one of the Travelers Responsible Driver Plans or by buying the accident forgiveness policy directly.
Liberty Mutual Liberty Mutual provides accident forgiveness to drivers with no history of accidents or violations within the last five years.

Is Accident Forgiveness Worth Having?

Accident forgiveness is worth adding to your insurance coverage, even if it is costly. If you are very careful and safe driver with a clean driving history, with an accident forgiveness policy, if ever, a claim is file against you for an accident, it is safe to say that you won’t have to pay very high premiums in the unlikely event that you do not have an accident forgiveness plan.

Also, if you have been involved in several accidents, you may not be eligible for an accident forgiveness program. It is best that you consider the cost and your driving history if you want to purchase an Accident Forgiveness Car Insurance.

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