If you’ve ever been in a car accident, you know that the financial ramifications can be severe – especially if the event was your fault. In fact, an at-fault accident raises auto insurance premiums by $767 per year on average! With such steep price increases, accident forgiveness car insurance coverage may seem appealing.
But, exactly, what does “accident forgiveness car insurance coverage” imply? The answer is a little more nuanced — we’ll get to that in a minute — but for now, the short answer is that it depends on your insurance company. Let’s take a look at some of the main insurance companies’ that offers accident forgiveness car insurance coverage
The fundamentals of accident forgiveness car insurance
Your vehicle insurer will not raise your rates after your first accident if you have accident forgiveness.
Accident forgiveness refers to collisions in which the other party is at fault. A collision-type claim would fall into this category, as it is deemed a chargeable accident.
Finding the most affordable auto insurance with accident forgiveness is a challenge.
Despite the fact that the following insurers advertise accident forgiveness car insurance, not everyone who applies will be accepted. Individual qualifications and geographic location are used to determine eligibility. In some states, such as California, insurers do not offer accident forgiveness programs. A comparison of accident forgiveness programs offered by major auto insurance providers is shown below.
Liberty Mutual Insurance Company
The accident forgiveness policy of Liberty Mutual is basic. Liberty Mutual will forgive your first accident and not raise your rates if you have been accident-free for five years (with any company). This policy applies to all family members who drive, including teenagers. Only one claim per household, not per driver, is forgiven by Liberty Mutual.
In California, Liberty Mutual’s car accident forgiveness coverage is not accessible.
Nationwide Insurance Company
At an additional expense, Nationwide offers a car accident forgiveness program. Nationwide, like many other accident forgiveness policies, forgives your first at-fault auto accident. Another reduction that Nationwide adds to the policy is a safe driving discount, which gives you an extra 10% off if you stay accident-free for five years.
GEICO
Accident forgiveness from GEICO is a one-of-a-kind addition to the standard program design supplied by other businesses. No matter who on the policy is deemed to be at fault, the provider will forgive your first car accident. Accident forgiveness from GEICO can either be earned or purchased. To qualify for GEICO’s accident forgiveness program, you must be at least 21 years old and have a clean driving record in the last three years (five years).
California, Connecticut, and Massachusetts do not have this coverage.
Progressive Insurance Company
Accident forgiveness is a tiered loyalty program offered by Progressive. While there is no additional cost, you must be insured with Progressive for a set period of time and have an accident-free driving record in order to qualify. Even if you’ve been accident-free for decades, if you’re a new client, you won’t be eligible for Progressive’s accident forgiveness right now. Tiers are awarded based on how long you’ve gone without an accident (three years vs. five years) and how serious an occurrence the firm is willing to overlook (small payout versus large).
Allstate Insurance Companey
Other accident forgiveness vehicle insurance policies work differently than Allstate’s accident forgiveness plan. To be eligible for Allstate’s accident forgiveness program, you must purchase the company’s Gold or Platinum coverage package. These plans are together known as the YourChoice Auto plan. To be eligible for accident forgiveness under a gold plan, you must go three years without having an accident. Your accident forgiveness begins right away with the platinum plan.
In California, this coverage is not available.
Erie Insurance Company
Accident forgiveness coverage is available from Erie Insurance in a variety of forms. The first, more conventional policy, First Accident Forgiveness, works on the same principle as other companies: if you’ve been a customer for three years, the first accident isn’t charged. The company’s second feature, known as Feature 15, is a loyalty program that forgives all at-fault auto accidents after 15 years with Erie. You’ll have to check with your agent to see if you’re eligible because the firm doesn’t specify whether you have to be claims-free for the entire 15-year period to qualify.
Travelers Insurance Company
For a price, Travelers offers auto accident and minor traffic infraction forgiveness, with one accident or ticket forgiven every three years. When it comes to the monetary cost of a “violation,” it’s unclear whether they’re talking about driving without your lights on (about $68 per year), speeding (depends on how much you’re going above the speed limit), or a DUI ($1,099 per year). If you’re with Travelers, find out exactly which type of infraction they’re talking about.
Is car insurance with accident forgiveness worth it?
It can be tough to decide whether or not to get accident forgiveness policy and which insurance to utilize. If you need it, you’d want it, but is the cost worth the reward? Before making a decision, you should also ask yourself the following questions:
How likely are you or a policyholder to be involved in an at-fault accident or make a claim?
Is the insurance coverage applicable to everyone on the policy? Are there any drivers who are particularly inexperienced or risky?
Is the cost of the additional coverage cheaper than the cost of an at-fault accident?
Don’t worry if your mind is racing after answering those questions. Let’s go over the points to think about.
First, assess whether any of the drivers on your policy are high-risk. All members of your home, including teen drivers, may be covered by these plans. Consider this policy if you’re concerned about an unskilled family member. You might not need this coverage if you’ve never been in an accident in your adult life and have never filed a claim.
Always check your policy’s fine print for any hidden exceptions. If you want to cover your teenage son with accident forgiveness, but your insurer’s provision excludes adolescents, you should look into other choices. Another common provision states that in order to qualify, all drivers must be accident-free for three to five years. In this situation, a newly licensed motorist may have difficulty obtaining accident forgiveness coverage because their driving record is likely to be limited to a few months.
The third question is a little more difficult to respond to. The amount you’d pay for an at-fault collision is determined by a number of factors. After an at-fault accident, you may anticipate to spend $384 extra every six-month term on average. Given that most at-fault incidents are charged for three years, you’ll be charged $2,301 in addition to whatever your accident premium is.
So, if you’re concerned about the possibility of being at fault in an accident and the dreadful $2,300 charged premium, think about accident forgiveness.
