If you have been a customer of the same insurance company for years, without ever filing a claim, you are likely seen as a low-risk client. If one day you get in a car accident and have to file a claim, your insurer may consider this an outlier to your regular driving behavior, and it still has incentive to keep you as a policy-holder. You may benefit from accident forgiveness that is already written into your existing contract, or it may have been a rider that you paid for monthly.
How Accident Forgiveness Works
Some companies include forgiveness. Others allow you to purchase it as a rider to your auto policy. It’s worth asking whether you qualify. The surcharge for an at-fault accident can be as much as 90%, depending on the state you live in. Other factors include the nature of the at-fault accident and your age, if you’re the driver. You may pay this surcharge in the form of premium hikes for up to three years, depending on the insurance carrier. If you pay your premium monthly, you could see a monthly price jump. If you pay twice per year, your costs go up for each payment. If your insurance company offers accident forgiveness, make sure you understand the terms. You might not qualify if you’ve been in more than one auto accident in the past few years. Racking up a lot of speeding tickets or moving violations may also render you ineligible.
What Companies Offer Accident Forgiveness?
Here are some of the leading car insurance companies offering accident forgiveness with details about this discount:
Allstate: Allstate accident forgiveness is an add-on. This option offers discounts to drivers with good driving records. You can also receive a discount for every six months you go without having an accident. Progressive: Progressive’s accident forgiveness is part of its “loyalty rewards” program. With this program, small accidents are forgiven. The idea is to quickly resolve small claims without increasing the insurance premium. USAA: USAA accident forgiveness is free with no at-fault accidents after five years. You can get this in most states. Nationwide: Nationwide’s accident forgiveness is only available in certain states. It can also extend to other drivers on your policy. The “forgiveness” only applies to one accident per policy. Liberty Mutual: Liberty Mutual’s accident forgiveness can be purchased with the auto policy by qualified customers. It only applies to the first at-fault accident. The option is not available in California. GEICO: GEICO accident forgiveness is available to certain drivers who reach a milestone anniversary and maintain a safe driving record. Qualified drivers may also purchase accident forgiveness. The time to do this is when you get the policy or at renewal. The Hartford: The Hartford’s accident forgiveness program doesn’t count your first accident against you if you meet the qualifications. Accident forgiveness is a part of The Hartford’s Advantage Plus package.
Alternatives to Accident Forgiveness
Even if you do not qualify for accident forgiveness, other auto insurance discounts may be available to you. One you can check into is the disappearing deductible program that many insurers offer. Driving discounts for students with good grades and pay-as-you-go insurance are other ways to get discounts. In time, as you clean up your driving record, you may qualify for more discounts. The longer you go with a clean driving record, the more discounts you can receive.
