What is Accident Forgiveness? (And How Does it Work?)

If you’ve recently been involved in your first car accident, then you know how stressful the entire event can be. Even if no one is seriously injured in the crash, you will still have to deal with serious financial consequences. Having to file a claim on your auto insurance policy due to any damages or losses can result in increases to your premium as well as surcharges being applied to your policy, which is frustrating for any driver. 

This can often feel as if your insurance provider is punishing you for something that may not have been your fault - especially when you’re usually such a careful driver. So naturally you may be interested in “accident forgiveness” programs offered by insurers and are wondering what exactly they provide. 

Here at Berry Insurance, we take pride in providing our clients with the know-how of the insurance industry so they can feel confident with their own policies. Keep reading for our breakdown of what benefits accident forgiveness provides policyholders and if it’s right for you. 

What exactly is accident forgiveness? 

Accident forgiveness programs are offered by most insurance carriers and are designed to protect your auto insurance premium from increasing after an accident. This means that if you experience your first accident behind the wheel, your insurance provider will not increase the rates on your policy as a result of having to file a claim for damages or losses. 

How does accident forgiveness work? 

The specifics of accident forgiveness will vary between states and insurance companies, so be sure to check with your own provider for what is provided/what you are eligible for. For example, most accident forgiveness offered by an insurer will only cover a driver’s first at-fault accident, while some carriers will forgive multiple - usually with a required period of proven safe driving before another accident can be forgiven. 

Similarly, some carriers require all listed drivers on a policy to maintain a clean driving record for five years, before they receive eligibility for accident forgiveness on their account. Some will not only look at your accident history, but also any driving violations on your policy as well - such as speeding or traffic tickets. 

With accident forgiveness, the accident itself is not completely erased from your driving record, however - your current carrier just won’t factor it into the calculation of your premium. As accidents will typically affect your premium for up to three to six years, if you decide to switch carriers later down the line, you could see an accident forgiven by your previous carrier affect the new rates you receive. 

Accident forgiveness programs usually apply to at-fault collision claims, so comprehensive claims would not be forgiven. To learn more about both collision and comprehensive coverages, read this article: Do I Need Comprehensive or Collision Auto Coverage?

How much does accident forgiveness cost? 

The price of accident forgiveness is another area that will vary depending on your carrier. 

Some insurance providers include accident forgiveness as a feature of their standard auto insurance policies, but you will likely end up paying a higher premium for its inclusion on the policy. For some policyholders, a higher base premium might be worth it for the benefit of accident forgiveness.

Other insurance carriers offer the service separately as an endorsement on your policy at an additional fee. Typically you can expect to pay around $60 - $75 per vehicle for accident forgiveness, and must be an experienced operator with a good driving record for eligibility. 

Insurance carriers like Safety Insurance include accident forgiveness as a part of a package offered with other benefits - in their case Safety Shield Plus. This can be a great way for policyholders to obtain accident forgiveness in addition to other useful coverages for auto insurance policies.

Interested in accident forgiveness but looking to save money before adding it to your policy? Then read our article all about the top ways to save on your auto insurance policy. 

Deciding if accident forgiveness is right for you

Ultimately the decision of whether or not you should have accident forgiveness on your policy comes down to what you wish to pay and what you want out of your auto insurance policy. 

If you are a safe driver, you may decide accident forgiveness is an unnecessary inclusion to your policy. On the other hand, having the added safety net of accident forgiveness could ensure you’re protected from rate increases in the rare event you do find yourself in an accident behind the wheel - or if you’d consider anyone else on your policy as a high-risk driver. 

Without having accident forgiveness on your policy, the increase on your policy premium after an accident will be dependent on your insurance provider as well as the severity of the accident itself. As surcharge fees can be quite expensive, it’s important to understand how they will affect your policy and for how long. For more information on how the surcharges you receive after an accident will affect your policy, read this article: How Surcharges Affect Auto Insurance.