Is Accident Forgiveness Ever Worth It?
- It only costs an average of $11 a month.
- It’s often worth adding to auto insurance that’s already cheap.
- Travelers and Auto-Owners have the cheapest accident forgiveness.
What is accident forgiveness?
Accident forgiveness keeps your car insurance rates from going up after your first at-fault accident. No law requires it, but several companies offer it as a cheap add-on.
An at-fault accident raises the average cost of full coverage car insurance Full coverage includes collision and comprehensive, which cover your own car for damage and theft. by $1,046 a year, or $87 a month. This works out to $3,138 over three years. This is about as long an accident stays on your record.
Accident forgiveness, on the other hand, only costs about $11 a month. It’s essentially a small charge now to avoid a possible large expense later.
Accidents and car insurance rates
| Type of car insurance | Annual rate | Monthly rate |
|---|---|---|
| Full coverage with clean driving record | $2,101 | $175 |
| Full coverage with accident forgiveness | $2,231 | $186 |
| Full coverage with one “unforgiven” accident | $3,147 | $262 |
You have to add accident forgiveness to your auto insurance before an accident for the coverage to apply. It does not fully protect you from rate increases after your first accident. It just spares you from an accident surcharge Insurance companies add surcharges to your rate for at-fault accidents and most moving violations. you would otherwise have to pay.
- Accident forgiveness won’t protect you from a normal rate increase your insurance company charges all customers.
- Your rate can also go up if the good driver discount you had before an accident gets canceled.
When is accident forgiveness worth it?
Accident forgiveness is usually worth it for an auto insurance policy that is already cheap. It’s not as important as essential coverages like liability Liability insurance covers injuries and property damage you cause to others. It’s required by law in almost every state. , collision Collision covers damage to your car from a collision with another vehicle or object. and comprehensive Comprehensive covers your car for theft and damage from non-collision causes, like fire, flood and vandalism. . Still, it can reduce some of the financial sting of an at-fault accident.
- A car insurance quote with accident forgiveness costs the same or less than quotes without it.
- Your car insurance company gives it to you for free.
Accident forgiveness is usually not worth it if:
- You have to choose a more expensive company just to get accident forgiveness.
It’s good to ask the companies you contact for quotes about their accident forgiveness programs. Getting quotes with and without the coverage can help you decide if it’s worth it for you.
Who has the cheapest accident forgiveness?
At $141 a month, Travelers has the cheapest full coverage car insurance with accident forgiveness. Auto-Owners is only slightly more expensive at $143 a month.
Full coverage rates with accident forgiveness
| Company | Monthly rate | Accident forgiveness cost | |
|---|---|---|---|
 | Travelers | $141 | $7 |
 | Auto-Owners | $143 | $6 |
 | The Hanover | $155 | $11 |
 | Progressive | $198 | $10 |
 | Nationwide | $254 | $8 |
 | Geico | $281 | $23 |
 | Farmers | $440 | $14 |
 | USAA* | $173 | $8 |
*USAA is only available to current and former members of the U.S. military and their families.
Each company’s rates vary by customer. This is why it’s good to compare car insurance quotes from a few different companies when you buy or renew auto insurance.
How do I get accident forgiveness?
You usually have to be a good driver to get accident forgiveness. Companies that offer it normally make you have at least three years of incident-free driving before you can get it. Some require five years with no tickets or accidents.
You typically also have to pay a small fee to add it to your policy. However, a few companies offer paid and free versions of accident forgiveness.
Progressive, for example, gives you free accident forgiveness after five incident-free years while insured by the company. If you don’t want to wait that long, you can pay for accident forgiveness before then.
Progressive also automatically forgives your first accident if it causes less than $500 in claims expenses. However, claims this small are rare.
Geico and American Family also offer paid and free versions of accident forgiveness. You can get it for free if you avoid accidents for specified lengths of time. These requirements vary by state.
Which car insurance companies have accident forgiveness?
The availability of accident forgiveness varies by insurance company and state. It’s generally not available in California. State Farm doesn’t offer it in any state.
Most other large companies offer it in most other states. Erie and Auto-Owners are among the smaller regional companies that also have it. Geico calls its program claims forgiveness.
Top companies with accident forgiveness
| Company | Paid or free | LendingTree score |
|---|---|---|
| Allstate | Paid |  |
| American Family | Both |  |
| Auto-Owners | Paid |  |
| Erie | Free | |
| Farmers | Paid | |
| Geico | Both |  |
| The Hanover | Paid |  |
| Liberty Mutual | Paid | |
| Nationwide | Paid | |
| Progressive | Both | |
| Travelers | Paid | |
| USAA* | Paid | |