What is Meant by Accident Forgiveness on an Insurance Policy?

January 3, 2021

Insurance may forgive, yet hope that you forget you might be paying extra for it.

“Accident Forgiveness” rating programs vary by the insurance company involved and the jurisdiction (state) involved.
In most circumstances, a policy endorsed to include “accident forgiveness” will forgo the addition of a normal “surcharge” following an “at-fault” accident over a certain dollar threshold.
However, in a few instances, accident forgiveness may include “not-at-fault” incidents and not include a threshold.
It might also be interesting to know that some insurance companies who make the biggest deal about their Accident Forgiveness Programs actually charge an additional premium for that benefit. Also, those same companies may not have the most attractive “forgiveness” factors included.
Often of some benefit to the insured, Accident Forgiveness programs does not mean your policy won’t go up in cost. Neither does it mean that additional accidents won’t result in a premium increase.
If Accident Forgiveness is a determining factor for you, check with your agent about the specific details of how that program applies before making a decision. A couple of good questions to ask would be:

How much (if anything) does the benefit cost to add to the policy?
In what situations would the “forgiveness” apply?

“Accident Forgiveness” rating programs vary by the insurance company involved and the jurisdiction (state) involved. In most circumstances, a policy endorsed to include “accident forgiveness” will forgo the addition of a normal “surcharge” following an “at-fault” accident over a certain dollar threshold.
As mentioned above in some instances, accident forgiveness may include “not-at-fault” incidents and not include a threshold.
It might also be interesting to know that some insurance companies who make the biggest deal about their Accident Forgiveness Programs actually charge an additional premium for that benefit. Because of that, those same companies may not have the most attractive “forgiveness” factors included.
Accident Forgiveness programs can be of benefit to those receiving them. However, that does not mean your policy won’t go up in cost. Neither does it mean that additional accidents won’t result in a premium increase.
If Accident Forgiveness is a determining factor for you, check with your agent about the specific details of how that program applies before making a decision. A couple of good questions to ask would be:

How much (if anything) does the benefit cost to add to the policy?
In what situations would the “forgiveness” apply?

Have additional questions about your car insurance? We LOVE to help. Please feel welcome to call us at 607-382-1235.

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Auto Rates and Finger Prints: Both are Unique to You!

By Jeff Ryan • April 7, 2026

Factors You Can’t Easily Control These factors are built into your profile, but still play a major role: Your location: Claim trends, traffic, and weather patterns where you principally drive. Your age and driving experience: Especially for younger drivers. Other drivers in your household: Their age and driving history. The vehicle you own: Unique to the Year, Make, Model, and Sub-model’s damageability and cost of parts/labor. These factors significantly influence price differences, but they don’t tell the whole story. Factors You Can Control This is where habits and wise decisions can make a real difference: Your driving habits: Minimizing tickets and accidents can have a direct impact. Your coverage choices: Liability limits, deductibles, and optional coverages can vary widely. Your insurance consistency: Avoiding lapses in coverage. Your annual mileage: How much and how often you drive. Discount opportunities: Bundling, pay-in-full, NYS defensive driving course. Your Insurance Score (Yes—You Can Influence It) Insurance companies use a credit-based insurance score as part of their rating process. While it’s based on financial behaviors, it is not permanent—and it can be improved over time. Simple habits like: Paying bills on time Reducing outstanding debt Avoiding excessive credit inquiries… can positively impact your score—and in turn, your insurance rates. Your insurance score is under your control and a worthy mid to long-term project in and of itself. For more information on what you can do to positively influence your score, see: Great 8 Tip #8 - What's Credit Got to Do with Insurance? How Can I Improve My Auto Insurance Score Why Comparing Rates Doesn’t Work When someone says, “I only pay…” , the uniqueness of their fingerprint is missing. What are their: Deductibles Driving history Insurance score Household profile Coverage limits: what they may be giving up in terms of protection. Price without context can be misleading and discouraging.