What is Accident Forgiveness?

Even if you meet the eligibility requirements, accident forgiveness isn’t always automatically included in your auto insurance policy unless it’s specifically listed. To find out whether you already have this benefit, start by reviewing your policy documents or declarations page. 

If you’re having trouble understanding the policy details or can’t confirm whether accident forgiveness is included,

your insurer for clarification. They can verify your coverage and explain any requirements or limitations. 

You can be certain if you have accident forgiveness only when it is clearly documented in your policy or confirmed directly by your insurer. 

Types of Accident Forgiveness Commonly Offered by Insurers

The type of accident forgiveness available to you depends on the terms of your auto insurance policy, and each provider structures this benefit differently. Based on expert analysis, here’s a breakdown of the most common types of accident forgiveness that insurers typically offer. 

Free Accident Forgiveness

Some insurers offer accident forgiveness for free as a loyalty reward for safe drivers. This benefit is typically available to policyholders who maintain a clean driving record for three to five consecutive years. Usually, free accident forgiveness is automatically applied to your policy to prevent any premium increase at the time of renewal after your first forgiven accident. 

Paid Accident Forgiveness

Generally, most insurers require policyholders to purchase a paid add-on coverage or endorsement for accident forgiveness. On average, paid accident forgiveness endorsement can cost you 2% to 9% of your auto insurance premium, or an additional $35 to $50 annually.  

Based on the average national car insurance cost of $2,700, a 2% add-on would cost about $55 per year (or roughly $4–$5 per month). A 9% add-on would cost approximately $243 per year. Some insurers charge a flat rate instead, often between $35 and $50 per year. The exact cost varies based on your insurer, location, coverage level, and driving profile. 

Hybrid Accident Forgiveness

Some insurers offer a hybrid accident forgiveness benefit, which is a paid add-on coverage that can eventually become free if you qualify for their loyalty perks. This can be very helpful, especially to prevent your insurance rates from increasing in the event of your first claim, in exchange for a small fee. 

If you manage to maintain a safe driving record with no accidents and insurance claims, you can soon benefit from your insurer’s loyalty program when this endorsement becomes free. So, as it only requires a small fee of about $50, it’s worth it to consider the hybrid model, as you can get it for free in the long run.  

Small Accident Forgiveness

The small forgiveness benefit applies to minor car accident claims of up to $500. If you were involved in a minor fender bender with an insurance claim that requires $500 or less as a payout, your car insurance rate won’t increase. However, if the claim exceeds $500, the small accident forgiveness benefit will not apply, and your car insurance rate may increase upon renewal or when you’re purchasing a new car insurance policy.  

Large Accident Forgiveness

If you stay accident- and violation-free for five consecutive years, you become eligible for large accident forgiveness, which prevents premium increases even when the claim payout exceeds $500. Typically, major car accidents often require a significantly high car insurance claim, so with the large accident forgiveness discount, there’s a much higher chance of preventing your rates from rapidly increasing after your first claim. 

How Much Can Your Auto Insurance Rate Go Up Without Accident Forgiveness?

Even after your first car accident, your car insurance rate can increase from 20% to 50%. Based on the numerical average, your car insurance premiums can increase by $800 to $1,000 or more after a single accident claim with a clean driving record.  

What qualifies for accident forgiveness?

Accident forgiveness typically applies to your first at-fault accident if you have maintained a clean driving record for a required period, usually three to five consecutive years, with no previous accidents, major traffic violations, or insurance claims. Eligibility and qualifying criteria vary by insurer and state, so the specific type of accident and claim amount that qualifies may differ based on your policy terms. 

Does accident forgiveness go on your record?

Every accident goes on your driving record and insurance history when you claim it. So, if you get accident forgiveness, it stays on your insurer’s record, and if you switch insurer, the new insurance provider can identify it based on your driving record and your claim history.  

Do you pay a deductible with accident forgiveness?

The moment you make a car insurance claim, the first thing that you need to do is pay your deductible to get reimbursement from your coverage. The accident forgiveness benefit will just ensure that your premiums don’t increase, but the claim process itself remains the same.