What Is Accident Forgiveness?

Last Updated on October 4, 2026

By James Shaffer Reviewed by Thomas Rockford, insurance industry executive and financial analyst, on October 4, 2026 How we fact-check

If you’ve ever been in a car accident, you know how stressful it can be. Beyond dealing with damage and injuries, you also worry about what will happen to your insurance rates. Some insurance companies offer accident forgiveness, which promises to protect you from a premium increase after an at-fault crash. But what exactly is accident forgiveness, how does it work, and is it worth paying for? This article explains the basics so you can decide whether it makes sense for your situation.

Accident forgiveness stops your current insurer from raising your rates after one qualifying at-fault accident, but it does not erase the accident from your DMV or insurance record.
Programs vary widely by company and state — some charge extra, some require years of safe driving, and some exclude serious accidents like DUIs.
The benefit is often limited to your first at-fault accident with that insurer, and switching insurers later means the new company can still rate you based on that accident.
Accident forgiveness is only worth it if the added cost is lower than a realistic premium increase, so you should compare the price of the feature against the potential rate hike.

Table Of Contents

History of Accident Forgiveness
What Is Accident Forgiveness?
Which Companies Offer Accident Forgiveness?
Read the Fine Print
FAQs About Accident Forgiveness
Final Word on Accident Forgiveness
Sources

History of Accident Forgiveness

Not long ago, a single at-fault accident almost always meant your premiums would go up.

Then insurers started introducing “accident forgiveness” — a feature where they ignore one accident for rating purposes. Companies like Liberty Mutual heavily advertised this, telling drivers that if their insurer raised rates after an accident, they should switch. Over time, accident forgiveness became a widely promoted perk.

However, not all companies offer it, and some states restrict how it can be used and marketed. For example, the San Diego County District Attorney brought a consumer-protection case against Allstate over ads for accident forgiveness in California, where Proposition 103 doesn’t allow it. Allstate agreed to pay $600,000 in late 2016. That was a district attorney settlement, not a fine from a regulator.

What Is Accident Forgiveness?

Accident forgiveness is a policy feature that protects you from a rate hike after your first qualifying at-fault accident. In simple terms, your insurer agrees not to use that specific accident against you when calculating your premium.

Key points:

It applies only to your current insurer’s pricing—not to your official driving record.
The accident will still appear on your record, and other insurers can charge you more if you switch.
Not all accidents are eligible; many insurers exclude DUIs or other serious violations (like DUI accidents).

Benefits of Accident Forgiveness

Accident forgiveness exists because even safe drivers make mistakes. Insurer loss data shows about 4.16 collision claims a year per 100 insured cars, which works out to roughly one collision claim per 24 years of driving. Accident forgiveness can:

Prevent a premium increase after one at-fault crash.
Provide peace of mind if you’re worried about a single mistake ruining your good-rate status.
Reward long-term safe drivers with added protection if something goes wrong.

Disadvantages of Accident Forgiveness

Accident forgiveness isn’t always a no-brainer. Potential downsides include:

It may cost extra: Nationwide, Farmers, Liberty Mutual and American Family all sell it as a coverage you add, and Progressive and GEICO charge for their larger versions. In some cases, you could end up paying more over time than a one-time rate increase would have cost.
Your DMV record doesn’t change: The accident still appears on your official record. If you change companies, the new insurer is free to rate you based on that accident.
The rate increase might be small anyway: If you have a clean driving history, a single minor at-fault accident may only raise your premium modestly.
Severe accidents may not be forgiven: In a serious crash, the insurer may drop you or non-renew your policy instead of forgiving the accident.

Which Companies Offer Accident Forgiveness?

Several major insurers offer some form of accident forgiveness, but availability and rules vary by state. Some states—like California—have strict regulations that limit how these programs can be offered.

Insurers That Offer Accident Forgiveness Programs Include:

Allstate: Allstate sells Accident Forgiveness as an optional feature you add to the policy. It isn’t available in every state.
Progressive: Progressive includes small accident forgiveness with its loyalty program at no charge, and it covers a claim of $500 or less. Large accident forgiveness is also free, but you need five years with Progressive and five years with no accidents or violations. There is a paid Accident Forgiveness option as well, good for one accident per policy period.
USAA: USAA offers accident forgiveness as an optional add-on for eligible military members and their families. USAA doesn’t publish a price for it, so ask when you get a quote.
Nationwide: Nationwide offers forgiveness in select states, and others on your policy benefit from it too. It can only be used once per policy, not once per driver, and you buy it as an addition to your regular auto policy.
Liberty Mutual: Liberty Mutual sells accident forgiveness as an added coverage, and it covers your first at-fault accident. You need five years with no accidents and no violations, counted across any carrier rather than just Liberty Mutual. Drivers under 25 need five consecutive clean years. It isn’t available in California.
GEICO: GEICO calls it Claim Forgiveness. The free version takes five or more years accident-free. The paid version, Upgraded Claim Forgiveness, can be added when you buy the policy or at renewal, not mid-term. It isn’t available in California, Connecticut or Massachusetts.
The Hartford: First Accident Forgiveness comes with AARP auto insurance from The Hartford as an included benefit. Every driver on the policy needs a clean record and five straight accident-free years with The Hartford, and it isn’t available to California policyholders.
American Family: American Family says its Accident Forgiveness coverage can be bought or earned, and that it shields you from a premium increase after your first accident. American Family doesn’t publish a price or a number of years.
Farmers: Farmers forgives one at-fault accident every three years when you buy Accident Forgiveness, which comes as part of its Smart Plan.
Travelers: Travelers sells Accident Forgiveness and Minor Violation Forgiveness, bundled as the Responsible Driver Plan and the Premier Responsible Driver Plan. They aren’t available in all states, including California.

Insurers That Do Not Offer Accident Forgiveness

State Farm: State Farm doesn’t publish an accident forgiveness program at all. What it does publish is an Accident-Free Discount, which starts once your car has been with State Farm for three continuous years with no chargeable accident.
MetLife: MetLife no longer sells personal auto insurance. Farmers bought MetLife’s property and casualty business in 2021, and MetLife now sends auto and home shoppers to Farmers GroupSelect.

Read the Fine Print

Accident forgiveness sounds simple, but the details matter. Before you rely on it, review:

How long you must be a customer before it applies.
Whether you must pay extra for it.
Which types of accidents are excluded (e.g., DUI, multiple accidents, commercial use).
Whether forgiveness applies per policy or per driver—and how often.

Also remember: accident forgiveness doesn’t erase the accident from your record. It just means your current insurer won’t surcharge you for that specific incident.

FAQs About Accident Forgiveness

What is accident forgiveness?

Accident forgiveness is an optional car insurance feature that prevents your insurer from raising your rates after your first qualifying at-fault accident. The accident is still recorded, but your current company agrees not to use it to surcharge your premium.

Does accident forgiveness erase the accident from my driving record?

No. Accident forgiveness only affects how your current insurer prices your policy. The accident still appears on your driving and claims history, and a new insurer can charge you more if you switch companies.

Is accident forgiveness free?

Sometimes it’s included and sometimes it costs extra. No insurer publishes a price for it, so the only way to find out is to get two quotes from the same company, one with it and one without, and compare them. Some companies let you earn it after years of claims-free driving instead.

Does accident forgiveness cover all types of accidents?

No. Most insurers exclude serious incidents like DUI-related crashes or multiple at-fault accidents. Accident forgiveness typically applies to one qualifying at-fault accident and may have dollar or severity limits.

If I switch insurance companies, does my accident forgiveness move with me?

No. Accident forgiveness does not transfer between insurers. When you move to a new company, they will see your full accident history and may surcharge you for the forgiven accident.

Is accident forgiveness available in every state?

No. California is the clearest example. Allstate, Liberty Mutual, GEICO, The Hartford and Travelers all name it as a state where their program isn’t available. GEICO also excludes Connecticut and Massachusetts.

Is accident forgiveness worth paying for?

It depends. You should compare the extra cost of having accident forgiveness against the likely premium increase from one at-fault accident. If you’re a safe driver and the surcharge would be modest, it might not be worth the added expense.

Which companies offer accident forgiveness?

Allstate, Progressive, USAA, Nationwide, Liberty Mutual, GEICO (which calls it Claim Forgiveness), The Hartford, American Family, Farmers and Travelers all offer some form of it, though details and availability vary by state. State Farm doesn’t publish an accident forgiveness program; it has an Accident-Free Discount instead.

Final Word on Accident Forgiveness

Accident forgiveness can be a useful safety net—but only if it makes financial sense. Before you pay extra or choose a company solely for this feature, consider:

How long you must wait before it kicks in.
How much more you’ll pay per month or year to have it.
How much your rate would realistically increase after one accident.
Whether you’d be better off self-insuring that risk by saving the difference.

Once you compare the cost of accident forgiveness against the likely impact of a single at-fault accident, you’ll be in a better position to decide whether it’s worth it for you. My advice is to ask one company for two quotes, one with accident forgiveness and one without, and put the yearly difference next to what a single at-fault accident would actually cost you.

Sources

Checked October 4, 2026. Allstate Accident Forgiveness, Progressive accident forgiveness (updated October 2, 2025), GEICO Claim Forgiveness, Nationwide Accident Forgiveness, Liberty Mutual accident forgiveness, The Hartford AARP benefits and discounts, American Family Accident Forgiveness, Farmers Smart Plan, Travelers accident forgiveness (July 27, 2023), State Farm auto discounts and its Virginia discounts page, MetLife auto and home. Insurance Information Institute: auto insurance facts and statistics (ISO/Verisk collision claim data through 2024). Farmers: close of the MetLife property and casualty acquisition, 2021. NBC 7 San Diego: Allstate settles claim over accident forgiveness ad, November 30, 2016.