Does American Family Have Accident Forgiveness?
Last Updated on September 12, 2022
American Family Insurance (AmFam) offers accident forgiveness to certain drivers.
If you cause an accident and file a claim, then you may pay higher rates. If you previously added accident forgiveness to your policy, however, then you can avoid the negative effects of an at-fault accident.
Keep reading to discover everything you need to know about American Family’s accident forgiveness, how it works, and whether or not it’s worth it.
Table of Contents:
- How American Family Insurance’s Accident Forgiveness Works
- Benefits of American Family Insurance Accident Forgiveness
- How to Get Accident Forgiveness with American Family Insurance
- Is American Family Insurance’s Accident Forgiveness Worth It?
- Does American Family Insurance Raise Rates After an Accident?
- How Much Does American Family Insurance Raise Rates After an Accident?
How American Family Insurance’s Accident Forgiveness Works
American Family Insurance offers accident forgiveness to certain drivers.
You can get AmFam’s accident forgiveness in two ways:
Buy It: You can buy accident forgiveness from American Family Insurance, paying a few extra dollars per month to add accident forgiveness to your policy.
Earn It: You can also earn American Family Insurance’s accident forgiveness. If you meet certain qualifications, American Family Insurance will automatically add accident forgiveness to your policy at no additional cost.
Once you have accident forgiveness, you can avoid the effects of a single at-fault accident on your policy.
In the event of an accident, you will be 100% forgiven and avoid large premium increases due to your first at-fault accident. Instead of raising premiums after an accident, American Family Insurance will keep your premiums at the same rate. American Family Insurance will also prevent you from losing any good driver discounts you may have earned.
You still need to file a claim and pay your deductible after an accident.
Benefits of American Family Insurance Accident Forgiveness
Some of the benefits of American Family Insurance’s accident forgiveness include:
- Avoid paying higher premiums after an at-fault accident
- A greater sense of security on the road, including better peace of mind
- Avoid additional unexpected costs due to an unfortunate mistake
- Keep your safe driving discount after an accident
How to Get Accident Forgiveness with AmFam
You can get accident forgiveness with American Family Insurance in two ways:
Buying It
You can buy American Family Insurance’s accident forgiveness. In exchange for a few extra dollars per month, you can add accident forgiveness to your policy and negate the effects of a single at-fault accident.
To add accident forgiveness to your policy, you must meet the following criteria:
- No at-fault accidents or driving violations in the last 12 months
- No more than one at-fault accident in the last three years
If you have claim activity like roadside assistance requests or comprehensive coverage claims, then you still qualify for accident forgiveness.
Earning It
You can also earn American Family Insurance’s accident forgiveness. If you earn coverage, then you automatically receive accident forgiveness on your policy without paying extra. American Family Insurance will automatically forgive your first at-fault accident.
To earn accident forgiveness with American Family Insurance, you must meet the following requirements:
- Claim-free for five years
- No major violations on your driving record
- Existing American Family customer for five years
- No at-fault accidents in the last five years
If you meet the above requirements and have been claim-free for five years, then you automatically qualify for accident forgiveness with American Family Insurance. The company will add accident forgiveness to your policy, and you can avoid the negative effects of a single at-fault accident.
Is American Family Insurance’s Accident Forgiveness Worth It?
American Family Insurance’s accident forgiveness may or may not be worth it, depending on your situation.
If you earned accident forgiveness with AmFam, then it’s an easy decision: you qualify for accident forgiveness automatically, and it’s a free perk to enjoy if needed.
If you are deciding whether to pay for accident forgiveness with American Family Insurance, then the decision is more complicated. You must consider your budget, aversion to risk, and the likelihood of getting into an accident.
Some of the things to consider before adding accident forgiveness to your policy include:
- The likelihood of you or any other licensed driver in your household causing an accident at some point in the future
- Your average annual mileage
- Your aversion to risk
- How much you value peace of mind
- Whether you qualify for automatic accident forgiveness (by earning it) or meet the qualifications to buy accident forgiveness (depending on your situation, accident forgiveness may not even be an option)
- Your driving habits and driving skills
- Your driving history (if you already have a serious accident on your record, then another accident could make premiums even higher)
Generally, accident forgiveness pays for itself after any at-fault accident within the next 3 to 5 years. Some drivers are willing to take the risk, while others would rather enjoy the peace of mind of accident forgiveness.
Does American Family Insurance Raise Rates After an Accident?
Like most insurers, American Family Insurance raises rates after an at-fault accident.
If you are found at fault for an accident, then you could pay higher insurance premiums for the next 3 to 5 years.
American Family Insurance uses several criteria to determine whether or not to raise rates after an accident, including:
At-Fault Versus Not-At-Fault: Were you at fault for the accident? American Family Insurance will typically raise premiums after an at-fault accident (assuming you don’t have accident forgiveness).
Severity: Did the accident total a car? Were multiple people injured in an accident? American Family Insurance raises rates higher after a severe accident than they would after a minor accident.
Driving History: Do you have a history of at-fault accidents? Do you already have an at-fault accident on your record? If so, you could pay higher premiums after an at-fault accident.
How Much Does American Family Insurance Raise Rates After an Accident?
American Family Insurance, like all insurers, raises rates after an accident.
The specific price increase varies between states and drivers. Generally, however, you can expect to pay 40% to 60% higher premiums after a single at-fault accident with American Family Insurance.
American Family Insurance tends to keep rates high for 3 to 5 years after your accident.
If you pay $1,200 per year for full coverage car insurance with American Family Insurance, then a single at-fault accident could raise rates to $1,680 to $1,920 per year – and you could continue paying elevated rates for 3 to 5 years.
Final Word on American Family Accident Insurance
American Family Insurance offers accident forgiveness to help drivers avoid the negative penalties of an at-fault accident.
Whether you earn accident forgiveness or buy it, accident forgiveness allows you to avoid higher premiums after an at-fault accident and keep your safe driving bonus.
Contact an American Family Insurance agent to ask about accident forgiveness or add accident forgiveness to your policy.
