How GEICO’s Accident Forgiveness Actually Works

GEICO’s free accident forgiveness will waive the premium increase for your first at-fault accident—but you need to stay accident-free for five years to earn it.

• Does GEICO offer accident forgiveness for auto insurance?
• How GEICO’s accident forgiveness works
• How much do your car insurance rates go up after an accident with GEICO?
• What other car insurance companies have accident forgiveness?
• What to do if your GEICO rate goes up
• Good driver discounts
• The bottom line
• FAQs

GEICO offers free accident forgiveness to drivers who go five years without an at-fault accident. This policy perk waives the surcharge for your first at-fault accident—and it’s also available for purchase if you don’t qualify for the free version.

Accidents happen—even if you’re a careful and conscientious driver. That’s why GEICO, like most major insurers, has a built-in option to waive the cost of your first at-fault accident, keeping your

low and preserving any good driver discounts you qualify for. In this guide, we’ll take a close look at GEICO’s accident forgiveness and explore other ways to save.

Yes, GEICO offers accident forgiveness . Drivers in certain states can purchase accident forgiveness for an added cost, and drivers who go five years without an

is a perk added to your GEICO policy that waives the surcharge that would normally be added to your insurance premium after a chargeable accident (i.e. an at-fault accident that causes property damage or injuries).

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There are two ways to get accident forgiveness with GEICO: earn it by maintaining a clean driving record for five years as a GEICO policyholder, or purchase it as an optional upgrade to your car insurance policy.

The first way is the easiest—and it’s free! Drivers over 21 years old who have maintained a GEICO policy for five years without any at-fault car accidents are automatically eligible for free accident forgiveness. Once that benefit is added to your policy, it applies to your first at-fault accident , and it can only be used once per policy (not per driver). However, drivers in California, Connecticut, and Massachusetts cannot get accident forgiveness through GEICO.

Buying accident forgiveness as an add-on is a little trickier. While you don’t need to meet the same strict eligibility requirements, not everyone qualifies for accident forgiveness coverage, and guidelines vary by state. The best way to find out if you’re eligible to add accident forgiveness to your GEICO insurance policy is to contact an insurance agent in your state.

Just how much money could accident forgiveness actually save you? On average, about $670 or 45% of your premium .

That’s the average increase you’ll see after your first at-fault accident without first-time forgiveness, according to experts at U.S. News and WalletHub. For subsequent at-fault accidents in less than three years, GEICO policyholders see an average premium hike of 95% to 155%, depending on the nature of the accident.

in an accident—for instance, in a hit-and-run— your car insurance rate shouldn’t go up . The same thing applies if you hit an animal, or if the accident was caused by defective tires. However, these aren’t hard-and-fast rules.

It’s also worth keeping in mind that a surcharge after an accident isn’t permanent. Depending on your state, it usually affects your GEICO rate for just three years and after two more years you become eligible for the good driver discount.

Most major car insurance providers offer some form of accident forgiveness. In most cases, it’s a reward for either loyalty or safe driving—or both. State Farm is the only major insurer that doesn’t offer any form of accident forgiveness.