What Is Accident Forgiveness?

Most drivers fear higher rates after a car accident. Because a single at-fault accident can raise insurance premiums by 42%. However, if you’re generally a safe driver and if it’s your first accident, you may think about whether your car insurance company offers accident forgiveness. It helps drivers with a clean driving record to avoid unexpected premium increases. So, it’s about saving money. Keep reading this article to learn about what accident forgiveness is, how it works, its types, its benefits and drawbacks, costs, and more.

What Is Accident Forgiveness?

Simply put, accident forgiveness is an optional feature in auto insurance that prevents your first at-fault accident from raising your insurance rates. Normally, even a small accident claim can lead to substantial premium increases. According to U.S. News and World Report analysis, a single at-fault accident can raise your premium by $872 a year.

Fortunately, if it’s your first time, and if you have car accident forgiveness coverage, your insurance company likely agrees to “forgive” that first mistake. And as a result, you won’t face any premium increases. Plus, it helps you keep your good driver discounts and protect your driving record from sudden penalties.

Is Car Accident Forgiveness an Insurance Coverage?

Yes, but it’s not a standard part of every insurance policy. Some car insurance companies offer accident forgiveness as a free benefit for long-term good driving. And some providers sell it as a paid-add on to your auto insurance.

So, you might want to know how to get accident forgiveness coverage. There are typically three ways to get it:

1. Buy it directly from your insurance agency as an add-on.
2. Earn it as a loyalty reward by staying accident-free for several years.
3. Qualify for it automatically if you meet your insurer’s clean driving history requirements.

How Long Does Accident Forgiveness Last?

It usually applies to your first fault accident, and then it resets. Some accident forgiveness insurers allow you to do it once every three to five years. Others may extend it for as long as you keep your car insurance policy active.

The exact time frame depends on your insurance company. Always check your car insurance coverage details before assuming it lasts forever.

How Do I Know If I Have It?

Accident Forgiveness isn’t always listed by default on your car insurance policy. To find out if it’s included, review your policy documents or contact your insurance agent directly. Some insurers automatically offer it to drivers with a clean record, while others may require an additional fee or eligibility through safe driver discounts.

Wondering if Accident Forgiveness is right for you? Reach out to L.A. Insurance today. We provide affordable full coverage auto insurance with maximum benefits and dependable protection. Call us at (800) 893-9393 to find out whether your policy includes Accident Forgiveness.

How Does Accident Forgiveness Work?

Accident forgiveness car insurance works by blocking your first fault accident from causing an insurance rate increase. A single at-fault accident can stay on your driving record for years. This usually leads to lost good driver discounts and higher car insurance rates. However, with forgiveness coverage, your insurance company simply overlooks the first mistake.

It doesn’t erase the car accident itself. The accident still shows in your driving history, but it won’t raise your insurance premiums. However, if you switch car insurance companies, they will count it while determining the rate.

This is important to note that each insurance agency sets its own rules. So, you might find providers who offer accident forgiveness coverage automatically if you have been accident-free for several years. However, others may not offer something like that. Rather, they may require you to purchase it as an extra benefit. A few even tie it to loyalty programs or good driving milestones.

Different Types of Accident Forgiveness Available

You won’t find something like “types of accident forgiveness” in insurance textbooks. However, it does exist. Each provider is unique and may design or customize this feature on their own terms. After analyzing various insurance companies, we’ve come across the following types of accident forgiveness coverage:

1. Free Accident Forgiveness

If you’re a long-term customer with a clean driving record for 3 to 5 years, some insurance companies may offer accident forgiveness coverage as a reward for your loyalty and safe driving under their customer loyalty program. So, this is only for qualified drivers. Although this option is less common, it’s really a nice perk. If you have been driving for several years without any accidents, call your insurer and ask them if you’re eligible for free accident forgiveness.

2. Paid Add-On Coverage

As we mentioned, free accident forgiveness is rarely offered by insurers. Most insurance carriers and agencies offer a paid ad-on to your auto insurance. You pay extra for your insurance policy, and in return, your first car accident will be forgiven and which means it won’t affect your future auto insurance premiums.

3. Small Accident Forgiveness

Some insurers only forgive small accident claims. For example, a minor fender-bender or low-cost repair may qualify. Many well-known providers, in such cases, only forgive claims that are equal to or less than $500. So, if your provider offers forgiveness for minor accidents, remember that any larger claim will still affect your insurance rate.

4. Large Accident Forgiveness

As the name suggests, it's the opposite of small accident forgiveness. With this type, even big accident claims may be forgiven. This means a costly car accident won’t always lead to a higher insurance rate. In fact, even if your total claim surpasses $500, your premiums won’t be affected. However, please keep in mind that this type may cost you more or require a longer good driving history, which, for sure, depends on the insurer's policy terms.

5. Upgraded Accident Forgiveness

Each insurance company may define upgraded accident forgiveness differently. However, like regular coverage, it has a few common features along with special features. You don’t have to wait three years or longer for the benefit to apply if you have upgraded accident forgiveness. Plus, it will help you cover higher claim thresholds, including both small and larger claims. Unlike free or basic auto accident forgiveness coverage, an upgraded one may forgive more than one accident over time.

Please note that accident forgiveness coverage is not available in every state in the United States. If you live in California, you cannot get accident forgiveness. This is due to Proposition 103, a law from 1988 that prevents insurers from charging excessive rates. And accident forgiveness requires you to pay extra for potential future events that may never happen.

Pro Tip: An Accident can happen to anyone and anywhere. And unfortunately, if you do have to experience such a shocking event, please try to stay calm and safe, and try to collect as much insurance information as you can about the other driver involved. If you don’t know how to do it, Learn how to find out if someone has auto insurance.

How Much Does Accident Forgiveness Cost?

The price of accident forgiveness coverage depends on your insurance company and your driving record. Some companies don’t charge for it at all. They prefer to offer it free to their most loyal policyholders who have been driving safely without any accidents for three years or longer.

However, some companies offer it as a paid add-on. On average, they charge around $8 per month. If you choose to pay annually, it may cost between $20 and $50 on top of your regular policy premium. For example, if your current standard full coverage policy is $2,100 per year, which is an annual average car insurance cost, you could pay up to $2,150 annually after adding the accident forgiveness feature.

Keep in mind, this is just a rough estimate. The exact cost will vary for each driver depending on the following factors:

• Driving history (e.g., clean driving record)
• Past accident claim history
• Location/zip code

Benefits and Drawbacks of Accident Forgiveness Coverage

Like any car insurance coverage, accident forgiveness has two sides. It can save you money which is true, but it also has limits. So, let’s look at both the benefits and drawbacks here.

Here are the benefits of accident forgiveness:

• Protects your clean driving record after a first fault accident.
• Prevents sudden insurance rate hikes and keeps good driver discounts.
• Adds peace of mind when comparing car insurance quotes
• Helps families with multiple drivers avoid steep premium increases.
• Can save up to 30% on long-term auto insurance, says expert insurance agents.

Drawbacks of accident forgiveness:

• Not available in every state/not offered by every insurance company
• Often sold as a paid add-on that raises your car insurance policy cost
• Generally covers only the first accident claims, not multiple accidents
• Some programs forgive only small accidents, not larger accident claims
• Drivers with a poor history may not qualify at all

Still, a single accident can dramatically raise your auto insurance rate. So, try to carry the right protection for you and your vehicle. Learn how much does car insurance rates go up after an accident. This will give you an idea of why accident forgiveness is worth exploring coverage.

How Can a Driver Qualify for Accident Forgiveness?

Eligibility for accident forgiveness insurance mainly depends on two factors: your insurance company's terms and your state. However, one key requirement remains consistent: you must have a clean driving record for a specific number of years, typically between three and five.

Generally, here’s what you need to do to qualify:

• Stay accident-free for 3 to 5 years, sometimes longer (ask your insurer)
• All drivers listed on the car insurance policy must not be responsible for any at-fault accident
• Keep a clean driving history, with few or no violations (e.g., traffic tickets, DUI)
• Be a long-term customer, several years with one insurer
• Some plans may require an age threshold, like 21 years+ old
• Availability is state-dependent (e.g., As said before not available in California)
• Small claims may qualify automatically; larger claims need tenure
• And most importantly, ask your insurance agency to confirm eligibility

Can You Get Accident Forgiveness Insurance in Michigan?

Yes, safe drivers looking for affordable insurance in Michigan can actually get accident forgiveness insurance. However, it’s not offered by every car insurance company. The availability of this type of insurance depends on the insurer, and even if it’s offered, it's typically sold as a paid add-on coverage. So, if you really need it, please contact your insurance agency in Michigan. To get reliable auto insurance coverage, request a quote from L.A. Insurance.

Is Accident Forgiveness Worth It?

In one word, yes, it is for many drivers. A single car accident can spike your insurance rate for years. And paying a little extra for accident forgiveness coverage can protect your clean driving record, keep good driver discounts, and give lasting peace of mind.

But it’s not for everyone. If you rarely drive, already pay high premiums, or live in a state where it isn’t offered, the cost may outweigh the benefit. The key is to compare insurance quotes, review your car insurance policy, and decide if avoiding one rate increase is worth the price.

Drive Safely to Get More Saving Options Like Accident Forgiveness

Safe driving doesn’t just keep you out of trouble. It opens the door to more savings, like accident forgiveness coverage. Insurers usually reward drivers who build a strong driving history and maintain a clean driving record. Here are a few savings options through which you can lower your car insurance rates:

• Good driver discounts for staying accident-free.
• Lower insurance rates with a safe driving program or telematics.
• Accident forgiveness insurance as a loyalty reward.
• Reduced premium increases after minor accident claims.
• Vanishing deductible safe drivers by reducing deductibles for each accident-free year until they reach zero.
• Better car insurance quotes from competing insurers.
• Bundling discounts when combining auto insurance with home or renters policies.

In the end, safe driving is the best thing you can do to lower your car insurance rates and keep your car insurance company on your side.

Frequently Asked Questions (FAQs):

Should you pay for accident forgiveness?

Yes, if you want protection from steep insurance rate hikes after your first fault accident. The cost is usually small compared to the long-term premium increases which make it a worthwhile option for many drivers.

What states don't have accident forgiveness?

Not every state allows accident forgiveness coverage. For example, California bans it. Rules vary, so always check your state laws and confirm with your insurance company before assuming availability.

Does L.A. Insurance offer accident forgiveness coverage?

Availability depends on the specific car insurance policy offered through L.A. Insurance. Some agencies provide it as a paid add-on, while others may not. Contact your insurance agent directly to confirm.

How many times can you use accident forgiveness?

Most insurance companies allow one forgiven accident claim per policy period, usually every three to five years. Some offer upgraded accident forgiveness, which can cover multiple accidents, depending on your driving history and plan.

When do you have accident forgiveness?

You have it once your insurance company adds it to your car insurance policy. It may be automatic for accident-free drivers, or purchased separately as a paid add-on. Always check your policy details to confirm.