Accident forgiveness is an optional add-on feature of car insurance that prevents your premiums from increasing after a car accident, especially if you were the at-fault driver.

This can save you quite a bit of money as most carriers will increase your premiums for at least three years following an accident and may even decline to renew your policy at the end of your term. With accident forgiveness coverage, though, your premiums will not increase after your first at-fault accident claim.

Whether accident forgiveness is worth the added cost depends on how you structure your policy and what sort of protections are most important to you. Here’s a deeper look at what accident forgiveness covers and whether you should consider adding this coverage option to your own policy.

How accident forgiveness works

In most cases, accident forgiveness applies only to the first accident you have or only one within so many years. It also generally only covers one accident per policy during that specific time period, not per driver. So if you get in an accident that’s forgiven, and then another driver on your policy, like your spouse, gets in another at-fault accident, you can expect your premiums to go up as a result.

It’s important to keep in mind that your premiums may still increase at renewal time even if you qualify for accident forgiveness. That’s because your carrier considers many factors when setting your car insurance rates. Accident forgiveness just ensures that your premiums aren’t increasing because of a qualifying accident.

Here are some other factors to consider about accident forgiveness.

How much premiums go up after an accident

The amount that your premiums increase after an accident varies depending on your carrier, location, coverage limits, and more. In some cases, you could see your premiums go up by 28% to 50% or more. Since no one can predict when an accident will occur, this can make accident forgiveness a pretty valuable feature on your car insurance policy.

How long accidents stay on your driving record

In general, an at-fault accident will be factored into your auto insurance premiums for about three years after the crash. Carriers may take into account the last three to five years of your driving record when setting your auto insurance rates, depending on the insurance company and even your state of registration.

Carriers also factor in your claims history and driving record as part of their risk assessment process. They may look at accidents, non-collision claims, moving violations, and even arrests to evaluate you as a driver and potential customer. If you have an accident history, most DMV records will also note the severity of the crash and any resulting injuries, which can also lead to rate increases after an accident.

Over time, you’ll find that your premiums will gradually decrease as a result of a previous accident, as long as you aren’t involved in another crash and maintain a good driving record.

Is accident forgiveness worth it?

The answer really lies in how much you’re paying for your auto policy and how much this additional insurance feature costs. As with most insurance products, that varies.

Some carriers include accident forgiveness as a complimentary perk for safe driving. Others add a surcharge for different options, which could include:

• Automatic accident forgiveness for small accidents, where the total damages fall below a certain threshold.

• Tiered accident forgiveness where loyal customers are rewarded after being an accident-free good driver for so many consecutive years.

• Immediate accident forgiveness coverage, which protects you against one accident per year or policy period.

All this to say: If your carrier offers accident forgiveness protection for free, it’s never a bad idea to take advantage of the additional coverage. If it’s offered for a cost, it may still be worth considering, especially if you’re already paying more than you want to spend for coverage. Having accident forgiveness on your auto insurance policy can give you peace of mind knowing you won’t be further penalized.

More ways to manage costs after an accident

Following an accident — especially one that has impacted your premiums — there are things you can do to slowly bring the cost of your insurance coverage down. Obviously, maintaining a clean driving record is paramount; over time, as the accident moves further away in your record, it will become less pertinent to carriers when calculating premiums.

You can also look into defensive driving classes, and many carriers offer insurance discounts for drivers willing to download and use telematics devices that track your driving habits.

With auto insurance premiums on the rise, many drivers want to do everything they can to avoid future increases. Accident forgiveness coverage is one such option, helping you avoid potential premium jumps following an at-fault accident. While some carrierss offer this protection to loyal and safe drivers at no cost, it may be worthwhile to purchase this coverage as a one-time "get out of jail free" card.