The accident forgiveness program is a system that was first implemented by Allstate and then embraced by most major insurance carriers. The insurance companies understand that accidents may happen to everybody, even the best drivers, and agree not to issue surcharges if it is your first occurrence in a long period of time. In no particular order, here are some insurers that offer an accident forgiveness program.
The accident forgiveness program is currently a part of Allstate’s Your Choice Auto® insurance package that may be purchased in all states but New York and Pennsylvania. In addition to not raising your premiums after an accident, the package also offers:
If you have been insured with GEICO for at least five years and haven’t had any accidents then the premium won’t go up if you cause one. It’s a free pass to your first at-fault accident. Eligibility is determined by your specific policy type, as well as the state rules and regulations.
The accident forgiveness program with Farmers is part of the FarmersFlex package that promises not to increase your premiums if you cause an accident. In addition, they will also replace your car with a new one (not taking depreciation into account) if you total it in the first two years of ownership or first 24,000 miles, whichever comes first.
The package may be subject to some state-mandated limitations, so you will want to talk to your local insurance representative before buying it.
The option allows you to pay the same premium after your first at-fault accident and, in addition, it covers other drivers listed on your policy. Teenagers are included, so if you have a son or daughter below 25 who uses the family car you will want to buy this package.
The price for the option may, in certain cases, offset the eventual increase in premium after an accident. You will want to do the math and see whether or not it really saves you money. Keep in mind, though, that this package will also protect your no-claims bonus. If you choose not to buy it and have an accident, you will be paying for the base premium and the surcharge; with the Accident Forgiveness option you may pay a higher premium but be eligible for 10% off the rate.
Progressive customers who have bought the Accident Forgiveness package will pay the same rates after an accident, provided it’s their first claim in three or more years and they have been with the company for at least four years. They seem to have the most relaxed requirements on today’s market, because all other insurers we have reviewed ask for at least four years of accident-free driving.