Accident Forgiveness

Accident forgiveness is a rate-protection feature: it stops your insurer from applying the standard at-fault accident surcharge after your first at-fault accident. It does not forgive the deductible, does not pay the other party, and does not remove the accident from your motor-vehicle record or CLUE loss history. It is a premium benefit, not a claims benefit.

What accident forgiveness actually does

• Prevents the first at-fault surcharge. After a covered at-fault accident, your renewal premium does not jump from the surcharge the carrier would otherwise apply (typically 30 to 50 percent).
• Scope: typically one accident per policy per lifetime of the feature. The second at-fault accident surcharges normally.
• Scope: typically policyholder-only. If a listed driver other than the named insured is at fault, forgiveness often does not apply.
• Scope: at-fault only. Not-at-fault accidents don't need forgiveness; they typically don't surcharge in the first place.

What accident forgiveness does NOT do

• Doesn't forgive the deductible. You still pay collision or comprehensive deductible as normal.
• Doesn't pay the other party differently. Your liability coverage pays the other driver's damages exactly as it would without forgiveness.
• Doesn't erase the accident. It stays on your motor-vehicle record and your CLUE loss history for the normal 3 to 5 year lookback. If you switch carriers, the new carrier can and usually will surcharge for it.
• Doesn't cover criminal or egregious conduct. DUI, reckless driving, hit-and-run, and criminal convictions typically void forgiveness.

Carriers and how their programs work

• Allstate: Accident Forgiveness is a paid add-on, part of the Platinum package. Available immediately on sign-up (no earn-in period).
• Liberty Mutual: Earned after 5 years accident-free as a Liberty Mutual customer; also available as a paid upgrade.
• Progressive: Small Accident Forgiveness is included free in most states. Large Accident Forgiveness is earned after 5 years with Progressive and claim-free for 3 of those years.
• Nationwide: Paid add-on; available at bind.
• Travelers: Premier Responsible Driver Plan bundles accident forgiveness with other long-tenure benefits for safe-driver policyholders.
• State Farm: does not file a named accident forgiveness product; uses a tenure-based rate stability approach instead.

When it is worth buying

• You have multiple drivers in the household (teen or young adult drivers).
• Your 10-year driving history has at least one at-fault event (base rate for the surcharge risk).
• The paid add-on costs less than the expected-value of a single surcharge over the next 3 to 5 years. The math is favorable at most carriers for high-risk households and unfavorable for clean-record single-driver policies.