What Is Accident Forgiveness?

Key Takeaways

• Accident forgiveness is an endorsement that keeps your insurer from raising your rate after an at-fault accident. It’s a valuable addition, since crashes can increase your premium $400 to $800 per year.
• Forgiveness typically applies to just one collision, and it doesn’t transfer. A new carrier will still factor in every accident from the past three to six years.
• Not every driver qualifies, and not every carrier offers it, with eligibility usually hinging on your Safe Driver Insurance Plan (SDIP) rating and driving history.
• At roughly $35 to $50 per year per vehicle, the add-on can pay off, especially for households with a teen driver.

When your auto insurance policy has an “accident forgiveness” endorsement, it means that your insurer will not raise your rate if you get into an accident. This is a big deal, since an at-fault car accident that injures someone could raise your rate by $400-$800 per year, according to industry sources. Drivers who get into multiple accidents typically see their rates climb by $1,000 or more. (Keep in mind, lots of individual factors determine exactly how much your rate increase would be.)

How Long Does Accident Forgiveness Last?

Accident forgiveness can be a valuable addition to basic auto coverage, but it’s not a license to crash. In most cases, accident forgiveness is only valid for one collision. If you’re at fault in subsequent collisions, you can expect a hike in your premium. And if you ever decide to switch carriers, the new insurance company will factor all recent accidents you’ve had into your rate—usually for three to six years after the event(s).

Can Anyone Get Accident Forgiveness?

No. Insurance carriers use different guidelines to determine who will qualify for their accident forgiveness programs. (And not all carriers offer the option.) Usually carriers look at your Safe Driver Insurance Plan (SDIP) rating, which is based on you driving record: past collisions, speeding tickets, other moving violations, etc.

Will My Insurance Company Tell Me If I Qualify for Accident Forgiveness?

Maybe, but don’t count on it. Eligibility can change from month to month, and not all carriers keep up with that data well enough to share the option with customers who don’t yet have forgiveness. Some insurance agents will automatically add forgiveness onto policies as soon as their customers qualify. Here at C&S, we believe it’s best to give people the option. Even though the cost is relatively low (an extra $35-$50 per year, per vehicle), it’s not our place to spend your money without consulting you.

How Much Does Accident Forgiveness Cost?

Costs vary. Some carriers charge a set amount annually ($35-$50), per car. Others charge a percentage of your overall premium. The added expense may make sense for you and your family—especially if you have a teen driving in your household.

Should I Get Accident Forgiveness Coverage?

There’s no one-size-fits-all answer. Your best bet is to contact your Massachusetts insurance agency to ask about your eligibility and options available with your current carrier and/or alternative carriers.

FAQs

Does accident forgiveness remove the accident from my driving record?

No, accident forgiveness doesn’t remove the accident from your driving record. It simply keeps your current insurer from raising your rate because of your first at-fault accident. The accident still appears on your record, so if you switch carriers, a new insurer can factor it into your rate, usually for three to six years afterward.

Is accident forgiveness available in Massachusetts?

Accident forgiveness is available in Massachusetts, though not every carrier offers it and eligibility varies. A few states, notably California, prohibit it entirely, but Massachusetts drivers can generally add it where a carrier provides the option. Whether you qualify usually depends on your Safe Driver Insurance Plan rating and driving history.

Does accident forgiveness apply to every driver on my policy?

Accident forgiveness typically applies to the policy as a whole, forgiving one at-fault accident no matter how many drivers or vehicles it covers. It usually isn’t a per-driver benefit, so a second at-fault accident by anyone on the policy can still raise your rate. Check your carrier’s specific terms, since forgiveness rules vary.

What’s the difference between accident forgiveness and a good-driver or accident-free discount?

Accident forgiveness and a good-driver discount work differently. A good-driver or accident-free discount lowers your premium as a reward for a clean record. Accident forgiveness is protection that keeps your rate from rising after your first at-fault accident. One saves you money while you stay incident-free; the other cushions you when an accident happens.

If I’m not at fault, do I need accident forgiveness?

Accident forgiveness is intended for at-fault accidents, which are the type that typically raise your rate, so its value is in covering the crashes you cause. Accidents where you’re clearly not at fault usually don’t trigger a surcharge.