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Insurance rates can increase with a single at-fault accident even if you've had a clean driving record for years. Accident forgiveness insurance helps protect you from higher premiums after your first at-fault accident, but exclusions apply, and it doesn't prevent rate hikes for other reasons.
Before adding accident forgiveness to your policy, it's important to understand how it works, the impact it may have on your premium and how to tell if it's right for you.
How Does Accident Forgiveness Work?
Accident forgiveness helps drivers avoid price increases if they're at fault in an accident. Some insurers offer it as an add-on you can include with your policy for an extra fee. Others provide it automatically as a loyalty perk for customers who have maintained a clean driving record for a certain number of years.
Coverage only applies to your first at-fault accident, not all accidents. If you have more than one driver on your policy, accident forgiveness may apply to each driver's first accident, or it may only apply to the first accident among all drivers, depending on the insurer.
The incident stays on your driving record, but the insurer doesn't factor it into the cost of your premium the next time your policy renews. However, if you switch insurers, the accident will likely be considered in the provider's premium calculation.
Accident Forgiveness Example
To understand how accident forgiveness may be able to save you money, consider this example. Say that six months after adding accident forgiveness coverage to your car insurance policy, you rear-end a car stopped at a traffic light. No one is seriously injured, but both cars are damaged.
Your liability coverage handles the repair costs for the other driver's vehicle, and your collision coverage pays for the repairs to your vehicle (after you meet your deductible). Your policy renews three months after the accident, but your premium doesn't increase because you have accident forgiveness coverage. Without it, your rate would've likely gone up.
How Do You Qualify for Accident Forgiveness Insurance?
Accident forgiveness isn't available to everyone, and it doesn't apply to all accidents. To qualify, you typically need to be accident-free for a specific amount of time, usually five years. Some providers may also require that you have no moving violations during that timeframe.
Additionally, certain types of accidents are typically excluded from coverage, including but not limited to:
- Hit-and-runs
- DUIs
- Reckless driving
Be aware: Accident forgiveness isn't available in every state. Contact your insurance company to find out if it's available where you live.
How Much Does Accident Forgiveness Cost?
Accident forgiveness generally costs approximately 5% of your annual premium. Drivers who pay $2,295 per year for car insurance—the national average, according to Experian data—would pay about $115 to add accident forgiveness coverage to their policy.
Learn more: Average Cost of Car Insurance in the US
Pros and Cons of Accident Forgiveness Coverage
The value of accident forgiveness varies based on your situation. Evaluating both the upside and the downside of maintaining coverage can help you decide if it's right for you.
Pros
It helps prevent rate hikes. If you've maintained a clean driving record for years, accident forgiveness can help keep your premium from skyrocketing after a single incident.
Coverage applies to everyone on your policy. Accident forgiveness doesn't just apply to the policyholder; it covers all of the drivers included on the policy.
You may receive coverage automatically. Some insurers provide accident forgiveness to longstanding customers at no cost.
Get peace of mind. Coverage can help ease worries about the financial burden of higher premiums after an at-fault accident.
Cons
It may not be worth the cost. Some insurers offer accident forgiveness as an add-on for an additional fee. Weigh the cost of coverage with your potential premium savings if you're in an accident.
It doesn't stop nonrenewal or cancellation. With accident forgiveness coverage, insurers usually won't increase your rate because you were involved in a single at-fault accident. However, they can choose not to renew or cancel your policy. If this happens you would have paid for coverage without receiving the benefit of a stable premium.
You can lose discounts. Providers can remove safe driving discounts when your policy renews, resulting in price increases.
It only applies to the first accident. If you're involved in a second at-fault accident within a certain amount of time after the first, your insurer can increase your rate.
There are exclusions. Accident forgiveness doesn't apply to all accidents. Your insurer may be able to increase your rate after a hit-and-run, DUI, reckless driving and other excluded incidents—even if it is your first infraction.
Is Accident Forgiveness Worth It?
Accident forgiveness is a no-brainer if your insurer includes it automatically as a loyalty perk when you've been accident-free for a certain number of years. But if you have to pay for coverage, you'll need to weigh the potential savings you could receive by avoiding a rate hike against the cost you'll pay to maintain coverage.
Here are some factors to consider to help you decide if it's right for you:
- Your risk: Younger drivers and those who put a lot of miles on their car are more likely to be in an accident. Accident forgiveness may make sense for drivers with a higher-than-average risk of being involved in a crash.
- Cost: If you have to pay for coverage, decide which is the more budget-friendly option—paying for accident forgiveness upfront or potentially shouldering a higher premium in the future.
- Risk tolerance: Having accident forgiveness can provide peace of mind, knowing you won't have to absorb a rate increase into your budget after your first accident.
How to Get Accident Forgiveness Insurance
When an insurer includes accident forgiveness in your policy automatically, there's nothing for you to do other than pay your premium when it's due. To purchase it as an add-on, you typically need to complete the following steps:
- Contact your current insurer. If you already have car insurance, reaching out to your existing provider is a good place to start. If they offer accident forgiveness, you may be able to add it by paying an additional fee.
- Research providers. Not all insurance companies offer accident forgiveness. If yours doesn't or you don't currently have car insurance, do some research to identify insurers that do.
- Get quotes. Compare offers from multiple insurers to find the one that best meets your needs and fits your budget. Experian's auto insurance comparison tool provides convenient access to quotes from top providers in one place.
- Purchase coverage. Select the policy you want to buy and make a payment.
Frequently Asked Questions
How Much Does Insurance Go up After an Accident?
Car insurance rates increase an average of $379 after an accident, according to Experian data from February 2026. However, rate increases vary, and the impact an accident has on your premium depends on the severity of the incident, your location, the insurer, your driving history, your age and other rating criteria.
Learn more: How Much Will My Insurance Go up After an Accident?
How Long Does an Accident Stay on Your Insurance?
Insurance companies generally look at the last three to five years of your driving history when determining your premium, but the exact timeline varies by insurer and state. Accidents and other infractions that occurred before that will remain on your driving record but won't typically affect your rate.
Learn more: How Long Does an Accident Stay on Your Insurance?
The Bottom Line
Accident forgiveness can help protect you from rate increases after a single at-fault accident if you have an otherwise clean driving record. But it's not the only way to save on your car insurance premium. Asking about discounts, shopping around and increasing your deductibles may help you qualify for a lower rate.
In states that allow insurers to use credit-based insurance scores when calculating premiums, taking steps to improve your scores might help you get a more affordable rate. You can check your FICO® Score☉ Θ for free at Experian anytime to see how your credit history may affect the price you pay for insurance.