Key Takeaway
- Accident forgiveness keeps your premium from rising after your first at-fault accident. It can be purchased as an add-on or earned through loyalty.
- An at-fault accident can raise your rate by 20% to 50%, and the surcharge typically lasts three to five years.
- You must already have accident forgiveness on your policy before an accident happens. You cannot add it after a crash.
- Accident forgiveness is not available in every state. California, for example, prohibits insurers from offering it.
Accident forgiveness is a car insurance feature that prevents your premium from increasing after your first at-fault accident. Without it, a single at-fault crash can raise your rate, and that surcharge typically stays on your policy for three to five years. Accident forgiveness is offered by most major insurers as a paid add-on or a free loyalty reward, but it is not available in every state and you must have it in place before an accident happens.
Jerry has helped 1,207,259 drivers compare car insurance quotes that include accident forgiveness, making it easy to find the right coverage and price. Here is how accident forgiveness works, what it costs, who offers it and whether it makes sense for you.
Jerry pulls up to 20 quotes from top rated carriers.
What is accident forgiveness?
When you cause a car accident and file a claim, your insurer will typically add a surcharge to your premium at renewal. Accident forgiveness waives that surcharge for your first qualifying at-fault accident, so your rate stays the same as if the crash never happened.
It does not pay for any damage or injuries. It does not erase the accident from your driving record. It only prevents the rate increase that would normally follow an at-fault accident. Think of it as a one-time shield for your premium.
Accident forgiveness is not automatically included in full coverage or any standard policy. It is either a separate paid add-on or an earned loyalty reward, regardless of your coverage level.
Here are the two main ways insurers offer accident forgiveness:
Key takeaway: Accident forgiveness only prevents a rate increase with the insurer that granted it. It does not pay for damages, remove the crash from your driving record or transfer to a new insurer if you switch companies.
Do I need accident forgiveness?
Whether accident forgiveness is worth adding depends on your driving profile, your budget and how much a rate increase would affect you financially. Here is a quick way to think about it.
| Consider accident forgiveness if: | You may not need it if: |
|---|---|
| You drive frequently or commute long distances. | You rarely drive. |
| You are a younger driver under 25, since younger drivers have the highest crash rates according to the Insurance Institute for Highway Safety. | Your car is older and you carry only liability coverage. |
| You have a newer or financed car that requires full coverage car insurance. | The add-on cost would strain your budget. |
| You live in a high-traffic metro area. |
Key takeaway: Frequent drivers, younger drivers and anyone with full coverage on a financed car benefit most from accident forgiveness. If your premium is low and you rarely drive, the add-on may not be worth the cost.
What does accident forgiveness cost?
The cost of accident forgiveness varies by insurer, state and your personal driving profile, but it is typically a small fraction of your overall premium. To put the cost in perspective, consider what you would pay without it. According to the Insurance Information Institute, an at-fault accident surcharge generally stays on your premium for three years.
|
Scenario |
Estimated impact |
|---|---|
|
Without accident forgiveness |
Based on Jerry quotes, drivers who have a recent at-fault accident on their record pay an average of 15% more than drivers with no at-fault accidents. |
|
With accident forgiveness |
You pay a small monthly add-on on your premium before any accident happens. If you later cause an at-fault accident, your rate stays the same, and the add-on cost does not increase. |
Several factors influence how much accident forgiveness costs and how much it can save you:
Your driving record
What is happening: Most insurers require three to five years with no at-fault accidents or major violations before you can qualify.
Your insurer
What is happening: Every company prices accident forgiveness differently. Some include it for free as a loyalty perk, while others charge an added fee.
Your state
What is happening: Not all states allow accident forgiveness. California prohibits it under Proposition 103. Availability varies by insurer in other states too.
Your coverage level
What is happening: When you cause a car accident and file a claim, your insurer will typically increase your premium when your policy renews. While drivers with full coverage pay more in total premium, the surcharge they avoid with accident forgiveness is larger were they to ever cause a crash.
Key takeaway: Accident forgiveness typically costs far less than the surcharge you would pay after an at-fault crash, which can last three to five years.
How to get accident forgiveness with Jerry
Finding a policy that includes accident forgiveness does not have to mean calling every insurer one by one. Jerry makes it easy to compare coverage options, including accident forgiveness, from 100+ insurers in one place.
Jerry also monitors market rates and lets you know when it is time to reshop, so you are always getting a competitive price.
How accident forgiveness works at major insurers
Every insurance company handles accident forgiveness a little differently. Some offer it for free after a loyalty period, others sell it as a paid endorsement and some do both. According to the National Association of Insurance Commissioners, eligibility is typically based on two factors: customer loyalty and a clean driving record.
Here is a comparison of accident forgiveness programs at some of the largest car insurance companies:
Why it matters: Programs vary widely. Comparing quotes through Jerry lets you see which insurers offer accident forgiveness in your state and at the right price.
Learn more: Car insurance discounts
Where accident forgiveness is not available
Not every state allows insurers to offer accident forgiveness. California is the most notable example. Under Proposition 103, California prohibits insurers from offering accident forgiveness programs. This means even your first at-fault accident will affect your rate.
Other states where accident forgiveness may be restricted or unavailable include:
- North Carolina. The state uses a regulated rate system (Safe Driver Incentive Plan) that does not allow traditional accident forgiveness programs.
- Michigan. Some insurers do not offer accident forgiveness here due to the state’s unique no-fault insurance structure.
Some insurers also restrict accident forgiveness in other states depending on local regulations. Always check with your insurer or use Jerry to compare what is available in your state.
If accident forgiveness is not available where you live, there are other ways to manage your rate after a crash. A defensive driving course can sometimes earn you a discount, and shopping around is one of the most effective ways to find a lower rate after an accident.
Key takeaway: California prohibits accident forgiveness. If it is not available in your state, shopping around and stacking other discounts are your next moves for better prices.
How to lower your rates after a car accident
If you have already been in an accident and did not have accident forgiveness on your policy, there are still ways to bring your rate down. The surcharge from an at-fault accident typically lasts three to five years, but you do not have to wait it out without taking action.
Shop around for a lower rate. Different insurers weigh accidents differently when setting rates. Comparing quotes from multiple companies can help you find a more affordable option. Jerry makes this easy by showing you quotes from 100+ insurers side by side. According to Jerry’s data, drivers who compare quotes after an accident save an average of $4,046 by switching to a more competitively priced insurer.
Take a defensive driving course. Many states and insurers offer a discount to drivers who complete an approved safe driving program. The discount varies, but it can help offset a post-accident surcharge.
Raise your deductible. Increasing your car insurance deductible lowers your monthly premium. Choose the highest deductible you could comfortably afford to pay out of pocket if you needed to file a claim.
Look for other discounts. You may qualify for savings through bundling, a safe driver discount, paying your premium in full or completing a telematics program.
Practice safe driving. The longer you go without another accident or violation, the sooner your rate will come back down. Over time, insurers reward a clean driving streak with lower premiums. Most insurers stop factoring an at-fault accident into your rate after three to five years. In some states, the surcharge phases out gradually rather than disappearing all at once.
Jerry recommends: You don’t have to wait three to five years for your rate to come back down. Shopping around is the fastest way to lower your premium after an accident and comparing quotes can uncover significant savings right away. Jerry can compare quotes from 100+ insurers in minutes.
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FAQ
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What is accident forgiveness in car insurance?
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Can you buy accident forgiveness after an accident?
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Is accident forgiveness worth it?
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Is accident forgiveness available in every state?
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How long does an at-fault accident stay on your insurance?
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Does accident forgiveness remove the accident from my driving record?
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Can accident forgiveness be used more than once?
Methodology
Data included in this analysis comes from policies that Jerry has quoted within the last 6 months for drivers with a clean record and that have full coverage, unless stated otherwise. Data related to violations, accidents or credit scores pull from quote data from the last 18 months. Jerry services 48 states and offers a range of insurance companies to choose from. Read Jerry’s car insurance data methodology to learn more about how we collect, verify and share real-world insurance data.
Ben Moore is a writer and editor at Jerry and an auto insurance expert. He previously worked as a writer, editor and content strategist on NerdWallet’s auto insurance team for five years. His work has been published in The Associated Press, Washington Post, Chicago Sun-Times, MarketWatch, Nasdaq and Yahoo News. He also served as a NerdWallet spokesperson, with appearances on local broadcast television and quotes in Martha Stewart and Real Simple magazine.
Ben has an extensive background in digital marketing, working on affiliate and programmatic advertising campaigns for brands like Cabela’s, H&R Block and Sears. He holds a bachelors degree in marketing from Olivet Nazarene University.
