Glossary

Accident forgiveness

A policy feature that stops your premium from rising after a first at-fault crash, either earned through loyalty or bought as an add-on.

Accident forgiveness is a promise from your insurer not to raise your premium because of a qualifying at-fault accident, usually the first one. Some companies grant it free after several claim-free years with them; others sell it as an optional endorsement you can add when you buy the policy.

It does not erase the crash. The accident still appears on your driving record and in your CLUE report, and the insurer still pays the claim and applies your deductible. What forgiveness waives is the surcharge that would normally follow an at-fault accident. Programs typically forgive one accident per policy or per set period, and some cover only small claims. Progressive, for example, says its automatic small-accident forgiveness applies to claims of $500 or less.

The protection stays with the insurer that granted it. If you switch companies, the new insurer can see the accident and price it. Availability depends on state rating rules: Travelers and The Hartford both say their versions are not offered in California. Before paying extra for it, compare the add-on's cost with the surcharge it would actually prevent.

Last reviewed October 4, 2026

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Related terms

At-fault accident A crash in which you are found mainly responsible, which your liability coverage pays for and which usually raises your premium at renewal. Surcharge An extra charge added to your premium after an at-fault accident, traffic violation or claim, usually lasting three to five years. Claims history The record of insurance claims you have filed or that were paid because of your driving, which insurers check when pricing and accepting a policy. Endorsement A written amendment to an insurance policy that adds, removes or changes coverage, such as rideshare use, rental coverage or OEM parts. CLUE report A LexisNexis database report of past auto or home insurance claims, which insurers pull to price and accept policies.

Related guides

The AARP auto insurance program from The Hartford How the AARP Auto Insurance Program from The Hartford works: who is eligible, the benefits and discounts it lists, state exceptions, and how to judge the price. Accident forgiveness explained Accident forgiveness stops your premium rising after a first at-fault accident. How GEICO, Progressive, Allstate, Liberty Mutual and others offer it. How long accidents and tickets affect your rates Accidents and tickets run on three clocks: your state driving record, claims databases that keep up to seven years, and the insurer's look-back period. How often should you shop for car insurance? Compare car insurance prices at least once a year, a few weeks before renewal, and after any change that affects your rate. Here is when and why. Should you file a claim or pay out of pocket? How to weigh a small claim against your deductible and a possible rate increase, which accidents you should report anyway, and how fault changes the math.

Related insurers

Agency Insurance Company Hanover, Maryland, auto insurer selling personal, commercial and motorcycle coverage through independent agents in MD, PA, TN and VA since 1990. Alfa Insurance The Alabama Farmers Federation's insurer, a Montgomery-based mutual selling auto through local agents in Alabama, Georgia and Mississippi since 1946. Allstate Publicly traded "Good Hands" insurer sold by exclusive agents, online and by phone, and owner of National General; offers Drivewise and pay-per-mile Milewise. American Family Insurance Madison, Wisconsin mutual sold through exclusive agents in 19 states; offers DriveMyWay telematics and MilesMyWay low-mileage pricing. Sold The General in 2024. Arbella Insurance Quincy, Massachusetts, mutual founded in 1988 that sells auto, home and business coverage in New England exclusively through independent agents. Auto-Owners Insurance Lansing, Michigan mutual founded in 1916 and sold only through independent agents in 26 states, with strong claims scores and no general telematics program.