Does USAA Have Accident Forgiveness?

Last Updated on November 14, 2023

USAA offers accident forgiveness in certain states.

If you have accident forgiveness, then USAA will ignore a single at-fault collision on your driving record. You can keep your safe driving discount and avoid paying higher rates.

Keep reading to discover everything you need to know about USAA’s accident forgiveness, how it works, and whether or not it’s worth adding.

Table of Contents:

How USAA’s Accident Forgiveness Works

USAA offers accident forgiveness to qualifying policyholders.

If your household has had zero at-fault accidents in the last five years, then USAA automatically adds accident forgiveness to your policy.

Alternatively, you can pay to add accident forgiveness to your USAA policy. Some drivers want the peace of mind that their rates will stay the same, for example, so they add accident forgiveness to their policy.

USAA offers accident forgiveness in most states but not all. Some states, including California, make it difficult for insurers to offer accident forgiveness.

Once accident forgiveness is on your policy, you avoid paying higher rates after a single at-fault accident. If you or any authorized driver in your household is involved in an at-fault accident, then you would typically pay higher rates. With accident forgiveness, you continue to pay the same rates as before and maintain your safe driving discount.

After using accident forgiveness to forgive an at-fault accident, it disappears from your policy. The next at-fault accident will raise premiums and will cause you to lose your safe driving discount.

How Much Does USAA Raise Rates After an At-Fault Accident?

A single at-fault accident can raise rates anywhere from 20% to 60%, depending on the severity of the accident, the percent you were at fault, and the cost of damages, among other factors.

Generally, more serious accidents lead to higher premium hikes. The more damage you cause in an at-fault accident, the more you’ll pay for car insurance.

USAA raises rates for approximately three years from the date of the incident. Additionally, if you have any major violations in the past five years (like a serious speeding ticket or reckless driving citation), then you could pay higher rates.

If you were not at fault for the accident, then USAA will not typically raise premiums. However, USAA may need to assess the accident to verify you were not at fault.

With accident forgiveness, you will not pay higher rates after an at-fault accident. USAA keeps your safe driving discount, keeps your premiums at the same rate, and cancels any penalties linked to the at-fault accident.

How to Qualify for USAA Accident Forgiveness

You need to meet certain minimum qualifications to qualify for USAA’s accident forgiveness, including:

A Clean Driving Record for 5 Years: USAA automatically adds accident forgiveness to your insurance policy if you have a clean driving record for the past 5 years. If you have had no at-fault accidents or major citations in the last 5 years, then USAA may automatically add accident forgiveness to your policy. You must have a clean driving record across all insurers, regardless of how long you’ve been with USAA. USAA requires all drivers in your household and listed on your policy to have a clean driving record in the past 5 years to qualify for this discount.

One Claim Per Policy: You do not qualify for USAA’s accident forgiveness if you have already forgiven an at-fault accident. USAA provides one claim per policy. After using accident forgiveness to forgive an at-fault accident, you cannot use USAA’s accident forgiveness again.

Benefits of USAA’s Accident Forgiveness

USAA’s accident forgiveness has several obvious and not-so-obvious benefits:

Added for Free After 5 Years: USAA is one of America’s top-rated insurance companies, and they’re also one of the few companies offering free accident forgiveness. USAA adds accident forgiveness to your policy for free after 5 years of safe driving history.

Guaranteed Low Rates: USAA’s accident forgiveness provides the peace of mind of lower rates. You can relax knowing that a single at-fault accident won’t ruin your budget or skyrocket insurance premiums.

Keep Your Safe Driving Discount: USAA provides safe driving discounts to drivers with 3 years, 5 years, or more of safe driving. If you have accident forgiveness, then you may be able to keep your safe driving discount – even if you cause an accident.

Avoid Higher Premiums After an Accident: All insurers raise rates after an at-fault accident. You can typically expect to pay 20% to 80% higher premiums after an accident. With accident forgiveness, your premiums stay the same after an at-fault accident.

How Much Does USAA’s Accident Forgiveness Cost?

Depending on your state, you may be able to buy accident forgiveness with USAA.

Although most customers receive accident forgiveness for free based on their driving history, some customers buy accident forgiveness for added peace of mind and protection.

The cost of adding accident forgiveness to your USAA policy varies widely based on your:

Based on these factors, you may pay anywhere from $30 to $200 per year to add accident forgiveness to your USAA policy.

Is USAA’s Accident Forgiveness Worth It?

Depending on your driving needs, you may or may not want to purchase USAA’s accident forgiveness coverage.

Many drivers qualify for USAA’s accident forgiveness automatically. If you and all drivers on your policy have 5 years of safe driving history with no claims, at-fault accidents, or citations, then USAA automatically adds accident forgiveness to your policy (assuming you have never forgiven any previous accidents). USAA adds this coverage for free.

However, if you buy USAA’s accident forgiveness, then it may or may not be worth it. Some drivers are willing to pay extra for peace of mind and guaranteed low rates, while others are okay with the risk of having an at-fault accident.

Accident forgiveness can pay for itself after a single at-fault accident. You might pay extra money today for accident forgiveness, but a single accident can cost you thousands of dollars in higher premiums over the next 3 to 5 years.

Ultimately, it’s up to you to consider your budget and aversion to risk to decide if USAA’s accident forgiveness is worth it.

Final Word on USAA’a Accident Forgiveness

USAA offers one of the best accident forgiveness policies in the auto insurance industry.

After 5 years of safe driving history, USAA automatically adds accident forgiveness to your auto insurance policy. If you have accident forgiveness, then USAA forgives a single at-fault accident, helping you avoid higher premiums.

Call USAA or check your policy online to determine if you qualify for accident forgiveness with USAA.

James Shaffer
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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