Everyone makes mistakes, and we shouldn’t always be defined by them. That’s why accident forgiveness insurance exists. Simply put, accident forgiveness is an insurance add-on that protects your premiums from increasing at renewal should you find yourself responsible for an accident.
Unlike first accident car insurance, which only protects you from your first incident (not multiple) and is only applicable once per policy (not once per driver on a multi-driver policy), accident forgiveness insurance affords you more room to be human. And humans aren’t perfect.
The trouble with accident forgiveness car insurance is not all insurance companies offer it, nor is it applied the same—some companies give it to loyal customers as a free add-on while others provide it as a paid product (or a hybrid).
With no “industry standard,” it can leave customers questioning whether it’s worth paying extra for accident forgiveness.
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There are three primary types of accident forgiveness offered by insurance providers.
If you want to add car insurance with accident forgiveness, there are certain hoops you need to jump through to qualify, like:
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When an insurance company talks about “at-fault” accidents, what they’re referring to is whether an accident is a chargeable offense (accident or violation) or not (minor fender bender). In other words, any time your insurance company is contacted, and you’re more than 50% at fault with damages that exceed a threshold (e.g., $1,000), then the incident is deemed “chargeable.”
Chargeable offenses result in an increase to your premiums via the addition of a surcharge. Surcharges can be as high as 90% and can affect your premiums for the next three years. Another thing to note is surcharges vary depending on your accident, age, and state.
The difference between chargeable violations and accidents are:
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Unless you get free coverage, to keep your insurance rates lower many people will keep a bare-bones policy to save money, meaning many won’t utilize accident forgiveness.
So the question becomes: Is it worth having accident forgiveness coverage?
The answer is: It depends.
There are a few things you want to consider before deciding if you should add accident forgiveness to your policy:
If you don’t qualify for accident forgiveness or your provider does not offer it, these are the good driver alternatives:
Having accident forgiveness car insurance is a no-brainer for good drivers eligible for free coverage, but for drivers deciding whether to put accident forgiveness on their policy, it’s not so simple.
There are many benefits to having accident forgiveness—avoiding premium hikes and peace of mind—but, depending on your driving habits and how much you can afford, you may decide having accident forgiveness isn’t right for you.
The best thing to do is call your insurance provider or prospective provider and ask if they offer accident forgiveness car insurance and whether you qualify. We can help. Request a free quote from a top provider.
You can buy accident forgiveness for your auto insurance policy anytime. However, if you’re purchasing it after a recent accident, it will not cover previous collisions. Should you want to buy accident forgiveness after being involved in a crash, call your insurance provider and ask whether you’re eligible for at-fault insurance.
This largely depends on the at-fault accident and where you live because state laws differ as to how long an accident stays on your record. But the surcharge will likely remain for a couple of years.
