What Is Accident Forgiveness?

Last Updated on December 9, 2025

If you’ve ever been in a car accident, you know how stressful it can be. Beyond dealing with damage and injuries, you also worry about what will happen to your insurance rates. Some insurance companies offer accident forgiveness, which promises to protect you from a premium increase after an at-fault crash. But what exactly is accident forgiveness, how does it work, and is it worth paying for? This article explains the basics so you can decide whether it makes sense for your situation.

Key Takeaways

• Accident forgiveness stops your current insurer from raising your rates after one qualifying at-fault accident, but it does not erase the accident from your DMV or insurance record.
• Programs vary widely by company and state — some charge extra, some require years of safe driving, and some exclude serious accidents like DUIs.
• The benefit is often limited to your first at-fault accident with that insurer, and switching insurers later means the new company can still rate you based on that accident.
• Accident forgiveness is only worth it if the added cost is lower than a realistic premium increase, so you should compare the price of the feature against the potential rate hike.

History of Accident Forgiveness

Not long ago, a single at-fault accident almost always meant your premiums would go up.

Then insurers started introducing “accident forgiveness” — a feature where they ignore one accident for rating purposes. Companies like Liberty Mutual heavily advertised this, telling drivers that if their insurer raised rates after an accident, they should switch. Over time, accident forgiveness became a widely promoted perk.

However, not all companies offer it, and some states restrict how it can be used and marketed. For example, Allstate was fined in California over how it handled accident forgiveness, a reminder that both legal rules and policy details matter.

What Is Accident Forgiveness?

Accident forgiveness is a policy feature that protects you from a rate hike after your first qualifying at-fault accident. In simple terms, your insurer agrees not to use that specific accident against you when calculating your premium.

Key points:

• It applies only to your current insurer’s pricing—not to your official driving record.
• The accident will still appear on your record, and other insurers can charge you more if you switch.
• Not all accidents are eligible; many insurers exclude DUIs or other serious violations (like DUI accidents).

Benefits of Accident Forgiveness

Accident forgiveness exists because even safe drivers make mistakes. The average driver is involved in a crash roughly every 18 years. Accident forgiveness can:

• Prevent a premium increase after one at-fault crash.
• Provide peace of mind if you’re worried about a single mistake ruining your good-rate status.
• Reward long-term safe drivers with added protection if something goes wrong.

Disadvantages of Accident Forgiveness

Accident forgiveness isn’t always a no-brainer. Potential downsides include:

• It may cost extra: Many insurers charge a fee for accident forgiveness or require you to buy a more expensive policy package. In some cases, you could end up paying more over time than a one-time rate increase would have cost.
• Your DMV record doesn’t change: The accident still appears on your official record. If you change companies, the new insurer is free to rate you based on that accident.
• The rate increase might be small anyway: If you have a clean driving history, a single minor at-fault accident may only raise your premium modestly.
• Severe accidents may not be forgiven: In a serious crash, the insurer may drop you or non-renew your policy instead of forgiving the accident.

Which Companies Offer Accident Forgiveness?

Several major insurers offer some form of accident forgiveness, but availability and rules vary by state. Some states—like California—have strict regulations that limit how these programs can be offered.

Insurers That Offer Accident Forgiveness Programs Include:

• Allstate: Allstate offers forgiveness through its Choice Auto Policy, often combined with safe-driver rewards for going claim-free in six-month periods.
• Progressive: Progressive includes accident forgiveness as part of its loyalty program. Minor accidents may be forgiven; major ones usually are not.
• USAA: USAA offers accident forgiveness as an optional add-on for eligible military members and their families, typically for under $1 per month.
• Nationwide: Nationwide offers forgiveness in select states and can extend it to other drivers on your policy, including teens. Usually, it applies once per policy, not once per driver.
• Liberty Mutual: Liberty Mutual includes accident forgiveness as part of some policies, but only for the first at-fault accident and not in certain states like California and North Carolina.
• GEICO: GEICO offers accident forgiveness either as a reward for safe driving over time or as an optional add-on at sign-up or renewal (not mid-term).
• The Hartford: Through The Hartford Advantage Plus package, drivers can get first-accident forgiveness—if they purchase that package.
• State Farm: State Farm doesn’t heavily advertise accident forgiveness, but many policyholders report qualifying after about nine claim-free years.
• American Family: American Family allows drivers to add accident forgiveness for a small fee or earn it after years of safe, claims-free driving.
• Farmers: Farmers offers forgiveness in some states, typically forgiving one at-fault accident every three years for qualifying drivers.
• Travelers: Travelers offers accident and incident forgiveness in certain states for eligible policyholders.

Insurers That Do Not Offer Accident Forgiveness

• MetLife: MetLife does not currently offer an accident forgiveness program.

Read the Fine Print

Accident forgiveness sounds simple, but the details matter. Before you rely on it, review:

• How long you must be a customer before it applies.
• Whether you must pay extra or upgrade to a more expensive package.
• Which types of accidents are excluded (e.g., DUI, multiple accidents, commercial use).
• Whether forgiveness applies per policy or per driver—and how often.

Also remember: accident forgiveness doesn’t erase the accident from your record. It just means your current insurer won’t surcharge you for that specific incident.

FAQs About Accident Forgiveness

Final Word on Accident Forgiveness

Accident forgiveness can be a useful safety net—but only if it makes financial sense. Before you pay extra or choose a company solely for this feature, consider:

• How long you must wait before it kicks in.
• How much more you’ll pay per month or year to have it.
• How much your rate would realistically increase after one accident.
• Whether you’d be better off self-insuring that risk by saving the difference.

Once you compare the cost of accident forgiveness against the likely impact of a single at-fault accident, you’ll be in a better position to decide whether it’s worth it for you.