The Accident Forgiveness Showdown – Who Has It and Who Doesn’t

The Accident Forgiveness Showdown - Who Has It and Who Doesn't

In just the last year more and more we’re hearing about accident forgiveness insurance…

on the TV ads, billboards and internet forums, but still a lot of consumers are confused about this new option. First off, not every company offers it and not every company offers it in every state. Also, it’s not automatically added to the policy holder’s plan, in fact in most cases you have to earn it or you have to pay for it.

Allstate Insurance appears to be the first that came out with this but it’s not free. Is it worth it? The cost varies so it’s highly suggested to call an agent and get a quote for yourself. Most of the companies have gone the way of offering this for free, but you have to meet certain qualifications.

Here’s a breakdown of the top companies and what they offer:

  • Allstate: Has to be added on and costs money but there’s no qualifications to get it.
  • Progressive: You have to be with them for 4 yrs and 3 of them have to be accident free.
  • State Farm: Does not offer it.
  • Geico: You have to be 5 yrs with them and accident free.
  • Travelers: Does not offer it.
  • Auto Club: Does not offer it.
  • Liberty Mutual: You have to be with them for 5 yrs, accident free and no violations for 3yrs.

Buyer beware…there are limitations to this option depending on your state and the company, so make sure you ask. Example; in California if your accident involves injury, by law your rates will go up no matter what! Although with that said, if you do have this option it can help lower the increase, in other words help soften the blow.

This option can save you a lot of money if ever used – on average an accident can cost you 30 to 40% more on your auto insurance.

Update: Allstate insurance no longer offers this option in California but it’s still available in other states.

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