Does Allstate Have Accident Forgiveness?
Last Updated on September 11, 2022
Allstate is one of the top 10 largest car insurance companies in the United States. Depending on your Allstate insurance policy, you may qualify for Allstate’s accident forgiveness.
Allstate offers optional accident forgiveness coverage to drivers across the United States. In exchange for a few extra dollars per month, you can avoid negative penalties from a single at-fault accident.
Keep reading to discover everything you need to know about Allstate’s accident forgiveness and how it works.
Table of Contents:
- How Allstate’s Accident Forgiveness Works
- Will Allstate Raise Rates After an Accident?
- Benefits of Allstate Accident Forgiveness
- What Happens If I Don’t Have Accident Forgiveness?
- Is Accident Forgiveness Worth It?
How Allstate’s Accident Forgiveness Works
Allstate offers accident forgiveness that works similarly to other accident forgiveness policies from competing providers:
- You pay to add optional accident forgiveness coverage to your existing Allstate policy
- Accident forgiveness protection begins the day you sign up
- If you are found at fault for an accident at any future point while having accident forgiveness on your policy, then you will not pay higher premiums or lose your safe driving discount because of that at-fault accident
You can use Allstate’s accident forgiveness once. After Allstate has forgiven a single accident, you cannot use accident forgiveness on a second accident. Allstate will treat the second at-fault accident as an ordinary accident, and you could pay higher premiums or lose your safe driving bonus.
Will Allstate Raise Rates After an Accident?
Allstate may or may not raise rates after an accident. It depends on the type of accident, the severity of the accident, your current car insurance coverage, and your driving record, among other factors.
Here are some of the things Allstate considers when deciding whether or not to raise premiums after an accident:
At-Fault Versus Not-At-Fault: Allstate, like most insurers, does not typically raise rates for accidents where you were not-at-fault. However, Allstate will typically raise rates after an at-fault accident (unless you have accident forgiveness).
The Severity and Cost of the Claim: Was the accident severe? Did it lead to serious damages? Were other parties significantly injured as a result of your actions? Allstate considers the severity of the accident when determining how high premiums should rise after an accident.
Your Driving Record: Do you have a clean driving record with zero incidents or at-fault accidents? Allstate may be more lenient about a single at-fault accident – especially if the damage is minor. Allstate may still raise rates, but not as much as they would normally raise them.
Generally, you can expect Allstate to raise premiums by 40% to 60% after a single at-fault accident, and you may continue paying higher rates for 3 to 5 years.
Benefits of Allstate Accident Forgiveness
The main benefit of accident forgiveness is that Allstate will ignore a single at-fault accident on your driving record. That means Allstate will treat the accident like it never happened.
Forgiving an accident leads to three main benefits:
- Avoid higher insurance premiums. Allstate, like most insurers, raises rates 40% to 60% after a single at-fault accident. If you have accident forgiveness, then you can continue paying your same rate after an at-fault accident.
- Keep your safe driving discount. You may qualify for Allstate’s safe driving discount if you have multiple years of safe driving history. If you have accident forgiveness, then you can keep your safe driving discount after a single at-fault accident.
- Enjoy peace of mind and the feeling of safe driving. Some drivers like the peace of mind of having accident forgiveness. For example, they enjoy knowing a single accident won’t double their premiums. Instead of being nervous about a single mistake ruining your life, you can relax while driving.
Because of these three perks, it may or may not be worth it to add American Family Insurance’s accident forgiveness to your policy.
What Happens If I Don’t Have Accident Forgiveness?
If you don’t have accident forgiveness, then you’ll pay higher rates after an at-fault accident.
Like all car insurance companies, Allstate bases premiums on your driving history. Drivers with a poor driving history – say, with multiple at-fault accidents or DUIs – pay more for car insurance than drivers with a clean record.
If you cause an accident while driving under Allstate, then Allstate will assess the accident to determine who was at fault.
Allstate may raise your rates and cancel your safe driving discount if you are at fault for the accident.
On average, Allstate raises rates 40% to 60% on average after a single at-fault accident – similar to other insurers.
If you pay $1,000 per year for car insurance as a driver with a clean record, then a single at-fault accident could cause you to pay $1,400 or $1,600 per year for that same coverage.
Typically, Allstate raises rates for 3 to 6 years after an accident, depending on your state and driving history.
When you have accident forgiveness with Allstate, you avoid all of these penalties.
Is Accident Forgiveness Worth It?
Accident forgiveness may or may not be worth it. It depends on your budget, aversion to risk, and your chance of getting into an accident.
Some things to consider when deciding whether or not to add accident forgiveness to your Allstate policy include:
Average Mileage: Do you work from home and drive only a few miles per year? You have a much lower chance of getting into an accident than a daily commuter. The more miles you drive, the more likely you are to get into an accident.
Your Driving Habits & Driving Skills: Are you a safe and cautious driver? Do you have zero accidents on your record and decades of safe driving history? Can you say the same for all licensed drivers in your household? Consider your driving habits and driving skills when deciding whether or not to add accident forgiveness to your policy. The safer you drive, the less likely you are to cause an accident in the future.
The Cost of Adding Accident Forgiveness: Allstate’s accident forgiveness policy costs anywhere from $50 to $200 per year to add to your policy. It depends on your driving history, vehicle type, and other factors. For some drivers, adding accident forgiveness to a policy may cost just a few dollars per month, and it can help you avoid thousands of dollars in future car insurance premiums. For other drivers, Allstate’s accident forgiveness is an unnecessary expense. Overall, however, a single at-fault accident within the next five years should easily cover the cost of adding accident forgiveness. Like all insurance, it’s up to you to determine your budget, aversion to risk, and chances of getting in an accident.
Your Driving History: Do you already have an at-fault accident on your recent driving record? Another at-fault accident could make your Allstate policy prohibitively expensive. Some drivers may want to add accident forgiveness to their policy to avoid the effects of multiple at-fault accidents. However, check with Allstate to make sure you qualify: you may need a clean driving record to qualify for Allstate’s accident forgiveness.
Final Word: Should You Buy Allstate’s Accident Forgiveness?
Yes, Allstate offers accident forgiveness.
With Allstate’s accident forgiveness, you can avoid paying higher rates and losing your safe driving bonus after a single at-fault accident.
Contact Allstate to determine if you qualify for adding optional accident forgiveness to your policy at an added cost.