How does Allstate Accident Forgiveness work?

Unforeseen accidents can lead to increased insurance premiums, but with Allstate Accident Forgiveness, you can avoid this situation.

This protective feature shields you from heightened costs after your first at-fault accident. It’s available as an optional add-on to your Allstate auto policy or as part of the comprehensive Allstate Platinum or Gold packages.

Allstate Accident Forgiveness qualifying accidents

Not all accidents are eligible for Allstate accident forgiveness. To qualify, you must meet the following criteria:

  • You must have a clean driving record for at least five years prior to the accident.
  • You must have no major violations, such as DUI, reckless driving, or hit-and-run, in the past three years.
  • You must have no more than one minor violation, such as speeding, in the past three years.
  • You must have no claims or lawsuits against you in the past five years.
  • You must be the primary driver of the vehicle involved in the accident.
  • You must report the accident to Allstate within 24 hours.

If you meet these requirements, Allstate will forgive your first at-fault accident and will not increase your premium as a result.

However, this does not mean that the accident will not affect your driving record or your future insurance rates with other companies. It’s only applies to your Allstate policy.

Allstate Accident Forgiveness policy details

Allstate accident forgiveness is not automatically included in your Allstate auto policy; it must be purchased separately or as part of a package.

The cost varies based on factors like age, location, vehicle, and driving history, with quotes available online or through an agent.

Allstate provides two types of accident forgiveness: basic, which forgives one at-fault accident per policy, and bonus, forgiving one at-fault accident per driver.

Bonus forgiveness is exclusively offered to customers with at least five years’ tenure and a clean driving record.

Additionally, Allstate accident forgiveness is integrated into Platinum and Gold packages, each offering different benefits like deductible rewards, safe driving bonuses, new car replacement and roadside assistance.

While the Platinum package offers enhanced coverage, it comes at a higher cost. Comparisons between packages can be made on Allstate’s website or through agent consultations.

An image illustration of Allstate Accident Forgiveness work
Allstate Accident Forgiveness work
Source;(PRNewsFoto/Allstate Insurance Company)

Allstate minor Accident Forgiveness

Allstate also offers a feature called minor accident forgiveness. This feature applies to accidents that cause less than $1,000 in damage to your vehicle.

If you have minor accident forgiveness, Allstate will not increase your premium for these minor accidents, even if you are at fault.

However, you still have to pay your deductible and report the accident to Allstate.

Minor accident forgiveness is not a separate feature that you can buy. It is included in the Allstate Platinum or Gold packages, or in the bonus accident forgiveness feature.

You can also get minor accident forgiveness if you have been with Allstate for at least five years and have no accidents or violations in the past three years.

Does Allstate Accident forgiveness raise rates?

  • Rate Impact: Allstate accident forgiveness prevents rate increases after the initial at-fault accident.
  • Exclusions: Rates may still increase for reasons like inflation, personal information changes, or alterations in coverage.
  • Rate Adjustments: Allstate reserves the right to adjust rates at any time based on risk assessment and market conditions.
  • Surcharges and Fees: Accident forgiveness doesn’t shield against surcharges or fees post-accident, such as reinstatement fees or deductibles.
  • Discounts and Rewards: Loss of discounts or rewards, like the safe driving bonus or deductible rewards, may occur after an accident.
  • Subsequent Accidents: No guarantee that rates won’t increase after the second or subsequent at-fault accidents. Allstate reviews driving records and claims history, potentially leading to rate hikes or policy cancellation.
  • Limitations: Accident forgiveness applies only to the first at-fault accident per policy or per driver, depending on the chosen type of accident forgiveness.

Allstate Accident Forgiveness reset period

It does not have a reset period. This means that once you use your accident forgiveness, you cannot use it again for the same policy or driver.

You have to maintain a clean driving record for at least five years to qualify for another feature, either by renewing your policy, switching to a different Allstate policy, or adding a new driver to your policy.

However, this does not mean that your accident will stay on your record forever.

Allstate will only consider your accidents and violations that occurred in the past five years when determining your eligibility and rates for accident forgiveness.

After five years, your accident will no longer affect your Allstate policy, but it may still affect your driving record and your rates with other insurance companies.

Is Allstate Accident Forgiveness worth it?

Allstate accident forgiveness emerges as a valuable safeguard against heightened premiums following your initial at-fault accident.

This feature provides financial relief, potentially saving you significant amounts over time and instilling confidence in protection from unforeseen rate increases.

However, it comes at an additional cost, either as a standalone option or part of a package, with expenses contingent on personal, vehicle, and location factors.

To determine its worth, consider factors such as driving frequency, potential post-accident rate increases, overall cost, loyalty to Allstate and additional perks like discounts or rewards.

The decision to opt for Allstate accident forgiveness remains optional, allowing flexibility to assess its benefits against other insurers and align with your specific needs and preferences

Allstate Accident Forgiveness full coverage vs. liability

  • Coverage Options:
  • Functionality:
    • Allstate accident forgiveness operates uniformly for both policy types.
    • Prevents rate increases after the first at-fault accident, regardless of damage to own or others’ vehicles.
  • Cost and Benefits Variation:
    • Full coverage policies generally more expensive due to extensive protection.
    • Cost of Allstate accident forgiveness may be higher for full coverage compared to liability policies.
    • Benefits of accident forgiveness could be greater for full coverage policies due to potential higher rate increases.
  • Example Scenario:
    • In an accident involving damage to own and another vehicle:
      • Full coverage policyholder may face higher deductible and premium without accident forgiveness.
      • Liability policyholder may only experience a higher premium, as own vehicle is not covered.
  • Considerations:
    • Decision to purchase Allstate accident forgiveness depends on:
      • Policy type.
      • Cost and benefits analysis.
      • Personal risk tolerance.

How long does Allstate Accident Forgiveness take to kick In?

As stated on Allstate’s website, accident forgiveness becomes effective immediately upon purchase, offering protection from rate increases after your initial at-fault accident.

It’s important to note that the coverage applies only to accidents occurring post-purchase, not those already on record.

If you’ve had a prior accident, you must wait five years for it to be removed before qualifying for accident forgiveness again.

Therefore, the optimal time to acquire Allstate accident forgiveness is before any accidents occur.

Purchasing it post-accident means enduring higher premiums for the next five years, whereas buying it beforehand allows you to sidestep the rate hike and save money over the long term.

Contact information

Phone NumberCall 800-726-6033 for 24/7 assistance from an Allstate customer service representative.
AddressMail inquiries or claims related to Accident Forgiveness to Allstate Insurance Company, PO Box 660636, Dallas, TX 75266.
Customer Service ContactReach Allstate online via email, chat, or Twitter. Links to these options are available on Allstate’s website.
Policy DetailsLearn about Accident Forgiveness and its workings on Allstate’s website. Obtain quotes, compare packages, and find local agents.
Email AddressSend secure emails to Allstate through a form on their website, providing name, email, phone number, and policy number (if applicable).
Fax NumberFax claims to Allstate at 1-866-424-8482, including your policy number and contact information.
Operating HoursAllstate’s customer service operates 24/7 via phone, email, or chat. Check specific agent or office hours on Allstate’s website or by direct inquiry.


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