Unlike most major car insurance companies, State Farm doesn’t offer accident forgiveness.
Auto insurance companies sometimes offer accident forgiveness to loyal customers as a way to avoid a rate increase for a single accident—but not State Farm. Instead, State Farm customers can reduce the cost of car insurance coverage with safe driving discounts based on real-time data or their long-term driving record.
If you’re a State Farm policyholder (or considering buying a policy), here’s what you need to know about accident forgiveness.
Does State Farm have accident forgiveness for auto insurance?
No, State Farm does not offer accident forgiveness for any customers.
You may find articles online claiming that State Farm offers accident forgiveness to loyal customers with at least nine years of no claims or accidents—but it isn’t true. In fact, State Farm is one of the only major insurance companies that doesn’t offer any form of accident forgiveness to its policyholders.
That’s not to say that there’s no benefit to staying accident-free with State Farm. Drivers who go at least three years without any accidents or claims may qualify for an accident-free discount on their State Farm car insurance policy.
For more information, check out our complete State Farm car insurance review.
Learn more: Does State Farm have good car insurance discounts?
How much will your car insurance rates go up after an accident with State Farm?
If you do end your accident-free streak, you can expect your insurance rate to go up—especially if you were at fault.
Exactly how much your State Farm car insurance premiums increase after an accident varies depending on a variety of factors including the nature of the accident, the degree of fault, whether there were any injuries, and your location. In general, State Farm customers see their auto insurance rates increase by 56% to 59% after a car accident.
But you won’t have to pay those higher rates forever—at least if you’re able to keep your record clean after the accident. In general, a car accident only stays on your driving history for three to five years, after which it won’t affect your insurance rates.
Learn more: Does a no-fault accident go on your record?
What other car insurance companies have accident forgiveness?
State Farm may not have accident forgiveness, but most of its competitors do. In some cases, this perk is an optional add-on, and in other cases, it’s added to your policy automatically once you reach the eligibility threshold (typically three to five years with no accidents or insurance claims).
Some of the best car insurance companies for accident forgiveness include:
- Allstate: Optional coverage after three to five years without accidents
- Erie: “First accident forgiveness” for customers of at least three years
- Farmers: Permits one at-fault accident for every three years of a clean driving record
- GEICO: Available for free by maintaining a clean driving record for five years or as additional coverage option for purchase
- Liberty Mutual: Available as additional coverage for drivers with no accidents or traffic violations for five years
- Nationwide: Available as an optional upgrade
- Progressive: Available as an optional add-on for small accidents (all customers) or large accidents (must be a Progressive customer for five years and accident-free for three)
- Travelers: Optional coverage with forgiveness for one accident and one minor violation every three years
- USAA: Optional coverage if all household members have been free of at-fault accidents for five years
If you’re looking for an insurance provider that offers accident forgiveness, be sure to compare at least three car insurance quotes from different companies before settling on a policy.
How much does accident forgiveness cost?
Accident forgiveness typically adds between $15 and $60 to your annual car insurance costs. Of course, those average rates vary from state to state, so be sure to check with an insurance agent before adding this coverage to your auto insurance policy.
If your provider offers it, accident forgiveness is often worth the added cost. Analysts at Forbes found that if you compare the annual cost of accident forgiveness to the average rate increase for an accident with injuries, you’d have to pay for 8 to 63 years of accident forgiveness before you equal the cost of a rate increase!
But keep in mind—an accident only stays on your driving history for three to five years, which means that surcharges from the accident are temporary.
What to do if your State Farm rate goes up
If your State Farm rate has gone up after an accident, consider adjusting your coverage limits, raising your deductible, or looking into discounts to account for the temporary rate increase.
Coverage limits
For instance, if your policy includes full coverage (e.g. comprehensive and collision coverage), you may be able to drop some coverage or opt for a lower limit. Just be sure that you’re meeting your state’s requirements for bodily injury and property damage liability, along with any other required coverage such as uninsured motorist coverage.
If you have full coverage, raising your comprehensive or collision deductible can help temporarily reduce the month-to-month cost of your policy.
Good driver discounts
Although State Farm doesn’t offer accident forgiveness, practicing good driving habits could still help you save money. Here are a few of the safe driver discounts State Farm offers:
- Good driver: New customers who have gone three years without at-fault accidents or moving violations (including speeding tickets) qualify for a discounted rate.
- Accident-free: Existing State Farm customers who maintain an accident-free record for a specific period of time can get a discount on their premium.
- Drive Safe and Save™: State Farm’s usage-based telematics program allows insurance agencies to track customers’ driving habits in return for savings.
- Steer Clear®: Young drivers can complete safe driving modules in exchange for a discounted rate on coverage.
- Defensive driving: Depending on your state, you may be able to take a defensive driving course in exchange for a discount. Talk to a State Farm agent to find out about your options.
Loyalty discounts
State Farm also offers loyalty discounts to customers who bundle multiple insurance products (such as auto and renters or auto and homeowners insurance) or those who insure multiple vehicles with State Farm.
The bottom line
State Farm might not offer accident forgiveness, but policyholders can still improve their rates by maintaining safe driving habits. If you do get into an accident with State Farm coverage, you’ll see a temporary increase in your premium—but with some smart insurance hacks, you can lower that rate to keep the coverage you need.
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Licensed Insurance Agent
R.E. Fulton is an expert insurance writer specializing in car ownership topics from car shopping and loan advice to insurance and repair guides. R.E.’s mission is to create unique and accessible content that helps readers to become more successful and independent car owners. R.E. has written and edited over 900 high-performing articles for Jerry, with an average of 1 million+ views. As a senior writer on Jerry’s editorial team, R.E. draws on over 10 years of experience as a professional writer and digital publishing specialist. Prior to joining Jerry’s editorial team in 2021, R.E. worked as a writing coach at Columbia University, the Rochester Institute of Technology (RIT), and the University of Rochester. They serve as a managing editor for peer-reviewed history publication Nursing Clio, where their work has appeared regularly since 2015.
Kathleen Flear is an expert insurance writer and editor who previously lead up Jerry’s editorial team as director of content. Kathleen empowers drivers to make smart car ownership decisions through best-in-class articles on insurance, loans, and maintenance. Prior to joining Jerry in 2021, Kathleen served as managing editor for a team of SEO content marketing professionals at Article-Writing.co and worked as a freelance writer and editor for a range of digital publications, including Chicago Literati magazine and Golden Words. She earned a bachelor’s degree in English language and literature from Queen’s University, and a master’s degree in creative writing and fiction from Sierra Nevada University.
