How AAA’s Accident Forgiveness Actually Works
With AAA, you can purchase accident forgiveness or earn it after five years of accident-free driving.
Written by Jaya Anandjit
Reviewed by Bellina Gaskey
Table of Contents
- Does AAA offer accident forgiveness for auto insurance?
- How AAA’s accident forgiveness works
- How much do your car insurance rates go up after an accident with AAA?
- What other car insurance companies have accident forgiveness?
- What to do if your AAA rate goes up
- Good driver discounts
- The bottom line
- FAQs
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AAA offers complimentary accident forgiveness to drivers who go accident-free for five years. You can also add it to your policy for a cost. AAA’s accident forgiveness waives any premium increases that result directly from an at-fault accident.
- AAA’s accident forgiveness is offered free of charge to insured drivers who remain accident-free for five years.
- You can also purchase accident forgiveness from AAA.
- Your AAA insurance rates go up after an at-fault accident if you do not have accident forgiveness.
- AAA’s accident forgiveness is offered free of charge to insured drivers who remain accident-free for five years.
- You can also purchase accident forgiveness from AAA.
- Your AAA insurance rates go up after an at-fault accident if you do not have accident forgiveness.
Here’s what AAA’s accident forgiveness entails, how to get it, and other ways you can save on your policy if you do face a rate hike.
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversDoes AAA offer accident forgiveness for auto insurance?
Yes, AAA offers accident forgiveness. Available to drivers in certain states, accident forgiveness may be added to your policy for a cost, or you can enjoy AAA’s complimentary accident forgiveness after clocking in five years without an
at-fault accident
.What is accident forgiveness?
With
accident forgiveness
coverage from AAA in place, you won’t have to worry about the surcharge that applies to your policy after one at-fault accident.Note that accident forgiveness will help you avoid the rate increase triggered by an at-fault accident, but you will lose your good driver discount if you had it. Losing this discount can cause your rate to increase after your renewal date.
MORE: How different types of car accidents affect your insurance rates
How AAA’s accident forgiveness works
AAA auto insurance policyholders have two options when it comes to getting accident forgiveness. You can either purchase accident forgiveness as additional coverage on your AAA policy, or you can earn it by remaining accident-free for five years while insured by AAA.
Purchasing accident forgiveness is a great idea because it applies to your policy immediately—no need for that five-year wait time. But waiting out five years without any at-fault accidents on your driving record is a sure way to secure accident forgiveness for free.
Keep in mind that accident forgiveness only applies to your first at-fault accident. Once you are involved in an at-fault accident, you won’t be eligible for accident forgiveness under AAA until you’ve completed five to six more years of accident-free driving, depending on the state.
Accident forgiveness is not available to all AAA members in every state, so you’ll need to reach out to AAA for eligibility requirements.
MORE: Should I report a car accident to my insurance company?
How much do your car insurance rates go up after an accident with AAA?
At-fault accidents are probably the worst thing that could happen to your insurance premiums. In fact, according to experts from WalletHub and U.S. News, insurance rates typically go up by an average of 45% after an at-fault accident, which could equate to nearly $670 added to your premium.
Thankfully, AAA members won’t face such pressing increases, as rates only go up by around 25% for 3-5 years after their first at-fault accident under an AAA policy. And if you’re
not at fault
for an accident—a hit-and-run, for instance—your auto insurance rate likely won’t go up.What other car insurance companies have accident forgiveness?
Accident forgiveness is fairly common. Most major car insurance providers offer this type of coverage—either as a reward for safe driving and customer loyalty or as a chargeable add-on.
Among the top insurance providers in the country, State Farm is the only one that doesn’t offer accident forgiveness. Meanwhile, you can get accident forgiveness on an insurance policy from any of the following providers:
- Progressive:All Progressive policyholders receive free small accident forgiveness; large accident forgiveness is available for customers insured by Progressive for five years while remaining accident-free for three years
- USAA: All household members must be free of at-fault accidents for five years to qualify for this optional overage
How much does accident forgiveness cost?
Each company charges a different price for accident forgiveness. If you’re a qualifying policyholder with a clean driving record for a certain number of years, you might not have to pay for this coverage at all.
AAA accident forgiveness is free to members who remain accident-free for five years. But if you plan on purchasing accident forgiveness, it’ll add approximately $40 to $60 to your annual auto insurance premium.
Is AAA’s accident forgiveness worth it?
AAA’s accident forgiveness is definitely worth it, especially if you qualify for free. Accident forgiveness will protect your wallet in case of an at-fault accident, meaning you won’t have to worry about an automatic higher insurance rate after an accident.
Drivers who qualify for AAA’s complimentary accident forgiveness will also be eligible for their good driver discount, which can shave up to 20% off premiums. (You will lose this discount after an at-fault accident, however.)
The bottom line: keeping a clean driving record can go a long way if you want to enjoy low car insurance rates.
If you plan on adding accident forgiveness to your AAA policy before you qualify with five years of accident-free driving, you might need to do some basic calculations before making the purchase.
AAA rates go up by around 25% following an at-fault accident, so be sure to calculate the cost of your potential post-accident rate before you commit to the extra $40 to $60 charge for adding accident forgiveness to your policy.
Chances are, it’ll be cheaper to purchase accident forgiveness rather than face a higher rate from an at-fault accident. Yet, if you’re a safe driver without accidents on your record to date, it might be worth the five-year wait for free coverage.
What to do if your AAA rate goes up
Without accident forgiveness, your AAA rate will go up after an at-fault accident—and you won’t be able to purchase accident forgiveness or qualify for free coverage until you remain accident-free for another five to six years. Thankfully, you have a few options to lower your rate in the meantime, which can financially help you recover from a post-accident rate hike.
Coverage limits
Full-coverage can be pretty expensive on its own, and after an at-fault accident, insurance providers view you as a riskier driver—which means your full-coverage rates will increase drastically.
Adjusting the coverage levels on your policy is a great way to cut any unnecessary costs, especially if you’re insured beyond
your state’s required limits
for liability insurance
, uninsured motorist coverage, or personal injury protection (PIP). Eliminating optionals like
collision coverage
or comprehensive insurance
can lower your rates, and as long as you still have basic coverage, you’ll be in compliance with state law. (Just keep in mind that taking away these coverages means you won’t be covered for repairs to your vehicle—insurance will only cover damage you cause to others.) If cutting coverage isn’t an option, consider raising the deductibles on your collision and comprehensive coverage. Higher deductibles show your provider that you’re willing to take greater responsibility for any applicable claims, which will bring down your monthly premiums.
Good driver discounts
In some states, AAA policyholders can receive a 20% discount on their car insurance rate for holding a clean driving record for a designated number of years. Eligibility requirements vary from state to state, and if you have a recent accident or traffic violation on your record, you won’t be able to claim this discount.
Thankfully, AAA also offers safe inspection discounts and safety feature discounts. So if your driving record doesn’t display the safest driving habits but your vehicle is safely maintained and up-to-date with protective features, you could earn some practical savings.
Loyalty discounts
AAA discounts
include multi-policy and multi-vehicle discounts, which apply when you insure more than one asset with them. Whether it be two cars, a home and a car
, or a home and a rental property
, you can save up to 20% off each policy when you bundle them together. You can also gain a discount for simply staying insured by AAA over the years. The longer you remain insured with AAA, the higher your discount will get!
The bottom line
AAA’s accident forgiveness can benefit safe drivers and protect them from higher rates after their first at-fault accident. With this said, not every AAA policyholder is eligible for this coverage, especially with traffic violations or previous accidents on their records.
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FAQs
Will AAA drop me after two accidents?
It’s unlikely that AAA will cancel your insurance policy after two accidents. While AAA doesn’t have any public information on their accident limits, most companies typically don’t refuse renewals or cancel insurance policies until drivers accumulate three or more at-fault accidents within a two to three-year period.
Does AAA have a deductible?
Yes, AAA auto insurance policies include deductibles for things like collision and comprehensive claims. Deductibles represent the out-of-pocket amount you’ll need to pay before your AAA coverage handles the rest of your claim. With AAA, the longer you stay accident-free, the lower your deductibles will get each time you renew your policy—free of charge.
