Accident forgiveness: what it is and the catch

Accident forgiveness means your insurer won't raise your rate after an at-fault accident, usually your first. It's worth real money, because one at-fault accident raises full-coverage rates about 49% a year for at least three years. The catch: it usually costs extra or takes years to earn, it covers one accident, and it stays with the insurer, not with you.

Written by Todd Whittington, Editor·Last reviewed October 19, 2026

What it does

Without forgiveness, an accident you cause usually adds a surcharge, an extra charge on top of your normal rate, for three years or more. With forgiveness, the insurer skips that surcharge for one accident. The claim still gets paid the normal way, after your deductible.

“Accident forgiveness means that an insurer agrees not to increase a customer’s premium after the driver is involved in an at-fault accident.” — NAIC Consumer Insight (Dec. 2, 2009)

Who offers it

Here is what each large insurer says on its own site. carrier_guidance

Insurer	Accident forgiveness	Not offered in (of the 8 states we cover)
State Farm	No product foundNo State Farm accident forgiveness product page was found (statefarm.com/insurance/auto/accident-forgiveness returns 404). State Farm advises checking whether your policy includes any forgiveness feature.	None of our 8
Progressive	YesFree Small Accident Forgiveness (first claim of about $500 or less) and free Large Accident Forgiveness (5+ years as a customer, accident- and violation-free) through Loyalty Rewards; a paid add-on forgives one accident per policy period. Paid add-on not available in all states.	None of our 8
GEICO	YesGEICO Claim Forgiveness waives the surcharge for the first qualifying at-fault loss, per policy (not per driver). Earned free after 5 years accident-free (may not apply under 21), or purchased.	California
Allstate	YesOptional Accident Forgiveness feature: rates won't go up after an accident even if you were at fault. Cost, first-accident limit and per-driver scope not stated. Not available in every state (none named).	None of our 8
USAA	YesOptional accident forgiveness coverage in most states can prevent a premium increase after a future at-fault accident (chargeable under USAA's Merit Rating Plan). Cost not stated. Not available in all locations (none named).	None of our 8
Nationwide	YesPaid Accident Forgiveness add-on in select states covers the first at-fault accident. Nationwide's own pages conflict on whether it can be used once per policy or without limit.	None of our 8
Farmers	YesOptional paid Accident Forgiveness on Farmers Flex Personal and Smart Plan Automobile policies forgives one at-fault accident every 3 years; Flex customers are offered it free after 36 continuous months.	California, New York
Liberty Mutual	YesOptional Accident Forgiveness: your price won't go up because of your first accident. Requires 5 years accident- and violation-free (5 consecutive clean years for drivers 25 and under); new customers only per the footnote. Cost not stated.	California

From each insurer's own website, read October 19, 2026; the insurer name links to the page we read. "Some states; ask" means the insurer says it isn't available everywhere but doesn't list where.

The catch

It often costs extra. The NAIC, the national group of state insurance regulators, says it is more often sold as an add-on for a fee. GEICO lets you earn it after 5 accident-free years or buy it; Liberty Mutual's needs 5 accident-free years; Farmers sells it as a paid option.
It covers a limited number of accidents. Some policies forgive one accident, others several. Farmers forgives one accident every 3 years, and GEICO forgives the first qualifying accident on the policy.
It doesn't move with you. Massachusetts' insurance regulator warns that a new insurer may count a "forgiven" accident when it sets your price.
The claim still shows. Forgiveness skips the rate increase. The claim still goes on your claims history report, which other insurers can see for up to seven years.
It isn't sold everywhere. In the states we cover, GEICO, Farmers and Liberty Mutual don't sell it in California, and Farmers doesn't in New York.

“More often, accident forgiveness is offered as an additional endorsement – or coverage option – for a fee.” — NAIC Consumer Insight (Dec. 2, 2009)

“If you move to another insurance company, that new insurer may factor that "forgiven" accident into the calculation of your premium.” — Massachusetts Division of Insurance, Accident Forgiveness

Does any state require it?

None of the eight states we've checked requires insurers to offer accident forgiveness or sets rules for it. What some states do is limit accident rate increases for everyone, with or without forgiveness: New York bars a surcharge for a crash with $2,000 or less in damage, Pennsylvania bars one unless the insurer paid more than $2,350 beyond the deductible, Florida caps a surcharge at 36 months, and several states bar a surcharge in some cases where you weren't at fault.

Is it worth paying for?

Compare its yearly price with what one accident would add. The national average rise after an at-fault accident is about 49% a year for at least three years. On a $2,000 premium, that's about $2,940 over three years. If your insurer already forgives small claims (Progressive says a claim of $500 or less won't raise your rate), the paid version mostly protects you from a bigger accident.

What this means when you're deciding

Before you file, ask your insurer three things: do I have accident forgiveness, has it been used, and does this accident qualify?
If forgiveness applies, filing costs you the deductible and uses up the forgiveness. Paying cash for a small repair can save it for a bigger one.
If it doesn't, compare the repair bill minus your deductible with about three years of higher premiums.
Switching insurers? The forgiveness stays behind, and the claim shows on your claims report.

Your fault, or not sure? File a claim or pay the shop?

The collision calculator weighs what a claim pays after your deductible against what the accident adds to your premium, with your state's rules.

Run the collision calculator →

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Sources

Accident forgiveness explained: NAIC Consumer Insight (Dec. 2, 2009). Source. NAIC Consumer Insight (Dec. 2, 2009). Source. Massachusetts Division of Insurance, Accident Forgiveness. Source.
Average rate rise: industry_typical, NerdWallet.
Insurer forgiveness rules: carrier_guidance, each insurer's own site (linked in the table); our at-fault surcharge dataset.