Does American Family Have Accident Forgiveness?
Last Updated on February 5, 2026
American Family Insurance (AmFam) offers accident forgiveness in many situations as an optional feature that can help protect your premium after your first at-fault accident (availability and rules vary by state and policy).
If you cause an accident and file a claim, your rate can increase at renewal. But if you have accident forgiveness, your insurer may waive the surcharge that would normally apply to a qualifying first at-fault accident.
Below is a practical guide to how American Family accident forgiveness typically works, what it does (and doesn’t) do, and how to decide if it’s worth adding.
- It Protects Your Premium, Not Your Deductible: Accident forgiveness may waive a surcharge after a qualifying first at-fault accident, but you’ll still file a claim and pay your deductible.
- Availability and Rules Vary by State: American Family may allow drivers to buy or earn accident forgiveness depending on state regulations and underwriting guidelines.
- One Claim Can Still Follow You: Even if your premium is protected, the claim can still appear in your insurance history and be considered in future underwriting.
- Worth It When the Risk Is Real: If a rate increase would hurt your budget—or you’re managing multiple drivers—accident forgiveness can be a practical add-on for peace of mind.
- How American Family Accident Forgiveness Works
- What American Family Accident Forgiveness Covers
- How To Get Accident Forgiveness With American Family
- Is American Family Accident Forgiveness Worth It?
- Does American Family Raise Rates After an Accident?
- How Long Can an Accident Affect Your Premium?
- Final Word on American Family Accident Forgiveness
- FAQs on American Family Accident Forgiveness
How American Family Accident Forgiveness Works
Accident forgiveness is designed to protect your premium after a qualifying first at-fault accident. American Family describes it as protection from increased premiums after your first car accident, and notes that premiums can increase by hundreds of dollars after an accident.
Depending on your state and policy, American Family may offer accident forgiveness as something you can purchase as an add-on or earn over time for safe driving and loyalty. Eligibility, timing, and restrictions vary by underwriting rules and state regulations.
| What Accident Forgiveness Usually Does | What It Usually Does Not Do |
|---|---|
| Helps prevent a premium surcharge after a qualifying first at-fault accident. | It doesn’t erase the accident from police reports, DMV records, or claim-history databases used for underwriting. |
| Can help you keep certain “safe driver” pricing benefits you’ve earned. | It doesn’t waive your deductible or make repairs free. |
| Provides peace of mind if you’re worried about one mistake changing your rates for years. | It typically won’t protect you from rate changes caused by other factors (overall rate changes, inflation in repair costs, new drivers/vehicles, relocation, etc.). |
Bottom line: accident forgiveness is about the price impact of a qualifying accident—your claim still gets handled normally, and policy terms still apply.
What American Family Accident Forgiveness Covers
When accident forgiveness applies, you’ll generally still:
- Report the loss and complete the claims process
- Pay your deductible for covered damage (for example, if you carry collision and comprehensive as part of full coverage car insurance)
- Have the claim recorded in your insurance history
What varies from state to state (and from policy to policy) is which accidents qualify and what “forgiveness” means in practice. For example, many insurers limit forgiveness to one qualifying accident per policy (or per driver) and may exclude severe violations or other non-accident rating issues.
Quick tip: Accident forgiveness is usually listed on your declarations page (Dec Page) as an endorsement/add-on or “reward.” If it’s not on the Dec Page, ask your agent to confirm whether it’s active on your policy.
How To Get Accident Forgiveness With American Family
American Family accident forgiveness is often available in two paths—buying it (as an optional add-on) or earning it (as a benefit after meeting your insurer’s safe-driving and customer-tenure expectations). Not every state offers both options.
Buying It
If your state allows it, you may be able to add accident forgiveness when you start a policy or at renewal. Insurers commonly require a reasonably clean recent driving record before they’ll add it, and some may restrict it to certain drivers/vehicles on the policy.
Earning It
Some drivers qualify for “earned” accident forgiveness after maintaining a strong record over time. Exact rules vary, but the general idea is simple: longer periods without at-fault accidents and serious violations can unlock better pricing and perks.
Related perks may include keeping certain discounts—such as a good driver discounts—that could otherwise be reduced or removed after an at-fault claim.
If you have questions about whether roadside help counts as “claim activity,” review your policy details and ask your agent. In many cases, service usage (like towing assistance) is handled differently than an at-fault collision, but it depends on how the benefit is provided and how your policy is rated. See our guide to American Family roadside assistance coverage.
Is American Family Accident Forgiveness Worth It?
Accident forgiveness can be worth it if the added cost is smaller than the premium increase you’re trying to protect against—or if peace of mind matters more than squeezing every dollar out of your monthly bill.
It’s especially worth considering if you:
- Drive high annual mileage or commute in heavy traffic
- Have teen or inexperienced drivers on your policy (where eligible)
- Would struggle with a sudden rate jump at renewal
- Want protection from a single mistake (not a pattern of claims)
| Decision Point | Accident Forgiveness Might Make Sense If… | You Might Skip It If… |
|---|---|---|
| Budget | You can afford a small add-on cost to avoid a much larger renewal increase. | You need the lowest possible premium today and can absorb a future increase if it happens. |
| Risk Tolerance | You prefer predictability and peace of mind. | You’re comfortable self-insuring the risk of a surcharge. |
| Driving Environment | You drive frequently in higher-risk conditions (urban traffic, long commutes, winter roads). | You drive infrequently and have a long, stable record. |
| Household Drivers | Multiple drivers increase the odds of an at-fault loss (where eligible). | Only one experienced driver uses the vehicle and you rarely lend it out. |
If you earn accident forgiveness automatically, it’s usually a straightforward win—just understand what qualifies and how often it can be used.
Does American Family Raise Rates After an Accident?
Like most insurers, American Family can raise rates after an at-fault accident—especially if the claim is costly, involves injuries, or follows other recent incidents. Even when you’re not at fault, some states and insurers may adjust rates based on claim patterns and overall risk.
Rate changes are driven by multiple factors, including your driving history, the severity of the loss, your location, and the rating rules filed with your state.
To better understand why rates can change after a crash (and what’s typical in the industry), see: does your car insurance go up after an accident?
How Long Can an Accident Affect Your Premium?
Insurers commonly consider accident and claim history for multiple years, but the timeline depends on state rules and the insurer’s filed rating plan. In general, the pricing impact tends to fade over time if you maintain a clean record afterward.
For a deeper look at timing and what can influence how long a surcharge sticks around, read: how long does an accident stay on your insurance?
Final Word on American Family Accident Forgiveness
American Family accident forgiveness can be a helpful safety net for a qualifying first at-fault accident—especially if you want to reduce the risk of a major rate change at renewal. But because eligibility and details vary by state and policy form, the smartest move is to confirm what’s available where you live and how it applies to your drivers and vehicles.
If you’re unsure whether you already have it, review your declarations page or contact your American Family agent and ask whether accident forgiveness is active, what losses qualify, and whether it can be added at your next renewal.
