Car Insurance Companies With Accident Forgiveness

What Is Accident Forgiveness for Car Insurance?

Accident forgiveness is an optional feature some auto insurance providers use to prevent a surcharge after your first at-fault crash. In most programs, it either has to be earned after a clean-driving period or purchased as an add-on; when purchased, current consumer analyses place typical costs around $60–$150 per year (sometimes up to $200), while some insurers include it at no extra charge once you qualify through tenure and a clean record — see Bankrate, NerdWallet, and Forbes Advisor. Accident forgiveness generally waives the first at-fault accident surcharge but does not erase the loss from your record or guarantee renewal, per the Insurance Information Institute. Availability is state-specific; for example, California regulators do not permit accident forgiveness under current rules (California Department of Insurance).

Major carriers structure this benefit differently. Progressive distinguishes between “Small Accident Forgiveness” (automatic protection for minor claims, commonly up to $500) and “Large Accident Forgiveness” you earn after an extended accident‑ and violation‑free tenure. GEICO lets some drivers buy or earn forgiveness (often limited to one forgiven accident); Nationwide sells it as an optional add‑on in many states, sometimes per policy or per driver; Travelers packages it within its Responsible Driver Plan; USAA may include it automatically after a defined clean‑driving period in some states or offer it as an optional coverage; and Liberty Mutual offers it as an optional benefit in many markets. By contrast, State Farm does not promote a standard, nationwide accident forgiveness program (Forbes Advisor).

Car Insurance Companies With Accident Forgiveness

Accident forgiveness is still offered by many top carriers, but terms vary by state, severity, and driver profile. Verify whether it applies per policy or per driver, whether it’s earned or purchased, any “small accident” dollar cap, and your state’s rules. Examples: Travelers includes one forgiven accident (and often minor violation forgiveness) within a set window, while Nationwide offers per‑policy or per‑driver variants in many states. California prohibits accident forgiveness endorsements (California Department of Insurance), and State Farm does not have a standard nationwide program (Forbes Advisor).

How Accident Forgiveness Works

If you cause an accident, your insurance rate will almost always go up. National analyses now show average full‑coverage premiums increase roughly 40%–56% after one at‑fault crash, with variation by state and driver — see The Zebra, $637 per year (Bankrate analysis; many guides also express the impact as a percentage), and NerdWallet. Most insurers rate accidents for three to five years (Insurance Information Institute). Accident forgiveness generally blocks that first at‑fault accident surcharge when the feature applies.

Eligibility commonly requires a multi‑year clean record (often 3–5 years) and sometimes tenure with the same insurer. Programs typically forgive one at‑fault accident per policy (sometimes per driver) and may exclude serious violations (e.g., DUI). Some carriers distinguish “small” vs. “large” accidents; for example, Progressive lists automatic Small Accident Forgiveness for minor claims (commonly up to $500) and a separate Large Accident Forgiveness after a longer clean‑driving/tenure period. Availability varies by state, and California does not permit accident forgiveness (California Department of Insurance). You generally must have forgiveness in force before the crash for it to apply (GEICO; Nationwide).

The way you pay for accident forgiveness depends on the insurer. The Progressive accident forgiveness program requires you to enroll in the Loyalty Rewards Program to receive benefits, while USAA may offer accident forgiveness for free after a clean‑driving tenure in many states. Many carriers sell it as a priced endorsement in eligible states; current sources place the typical cost around $60–$150 per year (sometimes up to about $200), and recent premium inflation means quotes often skew toward the higher end of that range — see Bankrate, Policygenius, NerdWallet, and CPI data for motor vehicle insurance from the BLS. Where it’s earned (e.g., Progressive’s Large Accident Forgiveness or USAA’s tenure-based option), the incremental cost can be $0 when you qualify (Progressive).

Limitations to Accident Forgiveness Coverage

Accident forgiveness usually waives only the surcharge for the first at‑fault accident. It doesn’t erase the event from your record, guarantee renewal, or prevent unrelated premium changes (for example, statewide rate filings or the loss of a safe‑driver discount). Many programs limit forgiveness to one event per policy (sometimes per driver) within a defined period — often within a 36‑month window in plans like Travelers’ Responsible Driver Plan — and you generally must carry the feature before the crash (GEICO; Nationwide). The accident can still be visible to other insurers if you shop later (Insurance Information Institute).

Programs often exclude severe losses and major violations (e.g., DUI), and some apply only to “small” claims under a dollar threshold (for example, Progressive’s Small Accident Forgiveness commonly applies to claims at or below $500). State regulation also matters: accident forgiveness is not permitted in California, and many carriers list “availability varies by state” on their product pages (Progressive; California Department of Insurance).

Is Accident Forgiveness Worth It?

Forgiveness can be valuable protection against a first at‑fault surcharge, especially where average increases run about 40%–56% and remain for three to five years (The Zebra; Bankrate; NerdWallet; III). If you can buy it for roughly $60–$150 per year (sometimes up to $200), it may pencil out if you’re adding a teen driver or face steep local surcharges (Forbes Advisor; Policygenius). If you have a long spotless record and low expected risk, or live in a state where it’s unavailable, the add‑on may not be cost‑effective. In today’s market, carriers have tightened eligibility and often package forgiveness as a loyalty/tenure benefit alongside telematics; shopping activity remains elevated and price is the dominant driver of satisfaction, so clear communication of limits (per policy vs. per driver, dollar thresholds, state availability) is key (J.D. Power 2025 Auto Insurance Study; J.D. Power 2025 Insurance Shopping Study).

Methodology

The information above synthesizes current insurer disclosures and national pricing analyses. Program rules and availability come from carriers such as Progressive, GEICO, Nationwide, Travelers, Liberty Mutual, Allstate, and USAA. Post‑accident premium impacts use 2025 national analyses from The Zebra, Bankrate, and NerdWallet. Context on what forgiveness does (and does not) do is supported by the Insurance Information Institute. Broader market pricing pressure is reflected in the BLS CPI for motor vehicle insurance.

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

These limits reflect common “full coverage” assumptions used by national rate studies and consumer guides when modeling typical impacts; exact pricing varies by insurer, state, vehicle, and driver profile. Figures cited (e.g., 40%–56% post‑accident increases; three to five years rated) are directional averages from the sources linked above and should be used for comparison only.

Incidents: Comparisons referenced above consider a clean record versus a first at‑fault accident, consistent with how the cited sources model post‑accident surcharges.