What is Accident Forgiveness and Why do I Need it?

The Accident Forgiveness endorsement has been around for approximately ten years. It’s scary how many policies we see that don’t have it. What is does is simple: Your current insurance company agrees not to charge for an at fault accident going forward. Without the Accident Forgiveness endorsement you would have to pay a surcharge on your policy costing you hundreds of dollars or more per year. It’s a very worthwhile investment. Typically, it’s either automatically included in the cost of the policy or you can add it for $25.00-$50.00 in most cases.

Not all companies in Massachusetts offer Accident Forgiveness – Geico and Progressive are two of the companies that don’t and there are others as well. Not everyone can purchase this endorsement. Depending on the Insurance Company, you’ll need to have a clean driving record for the last X (they all differ) number of years. Some allow you to have one moving violation during that time and others don’t. Some won’t let you buy it until you’ve been with them for a certain number of years while others don’t. Most require you to be driving for at least six years. 

There is a give and take with the Accident Forgiveness endorsement:

  • By Massachusetts law you will still be “Surcharged” for any at fault (if you are found to be more than 50% at fault) accident.
  • The insurance company agrees NOT to charge you for it.
  • If you change insurance companies, the new company will charge you the surcharge because it’s on your driving record. The prior insurance company just agreed to forgive the surcharge not the new company.

When your agent recommends Accident Forgiveness coverage to you, they aren’t doing it for the extra $2.50 commission.They are doing it because it’s the right thing to do and if they didn’t you would question them as to why you didn’t have it or at least offered it to you.

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