Auto Insurance Companies That Don’t Penalize You if an Accident Isn’t Your Fault (2021)

Auto insurance companies that don't penalize you if an accident is not your fault won't increase your rates. Car insurance companies that do penalize you if an accident is not your fault usually cover the property damage expenses. Penalties can increase your rates by 32%. Shop around and compare until you find a company with the best rates.

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent

UPDATED: Sep 29, 2021

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A Concise Overview

  • Accidents can increase your auto insurance rates by 32%
  • If you qualify for an accident forgiveness add-on, you can prevent a penalty after an at-fault accident
  • Some smaller auto insurance companies provide accident forgiveness regardless of your auto insurance coverage

Are you having trouble finding car insurance companies that don’t penalize you if an accident is not your fault?

Not-at-fault accidents work differently at various auto insurance companies. But which auto insurance companies don’t penalize you for not-at-fault accidents?

Don’t worry – our guide explains which auto insurance coverages you need for not-at-fault accidents and why multiple accidents can make you a high-risk driver regardless of fault.

After you learn everything about auto insurance companies that don’t penalize you if an accident is not your fault, enter your ZIP code in the free online quote tool above to compare multiple companies in your area.

What are the best auto insurance companies that don’t penalize you if an accident is not your fault?

Most car insurance companies don’t penalize you for a not-at-fault accident, and you might not even be charged for an at-fault accident if you have accident forgiveness attached to your policy.

Some auto insurance companies allow new and current customers to purchase accident forgiveness, such as The General.

Meanwhile, some insurance companies provide accident forgiveness as a reward for having insurance without any incidents.

Here is the list of companies that provide accident forgiveness.

  • Allstate
  • GEICO
  • Farmers
  • Liberty Mutual
  • Progressive
  • Nationwide
  • State Farm
  • Travelers

If you’re not at fault in a car accident, you won’t need to need to use your accident forgiveness perk. 

Accident forgiveness usually prevents your rates from going up after a chargeable accident – in most cases that means an at-fault accident.

But if a car accident is not your fault, does your insurance go up when you don’t have accident forgiveness?

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Can auto insurance companies increase rates if an accident is not your fault?

Generally, no. Most car insurance companies don’t increase rates when an accident is not your fault.

When you are at fault in an accident, your rates increase. On average, your auto insurance rates can go up by 32% after an accident.

Let’s look at a few sample rates to see how accidents increase auto insurance costs.

Average Monthly Full Coverage vs. Liability-Only Auto Insurance Rates by Company
CompaniesFull Coverage Auto Insurance Rates with a Clean Driving RecordFull Coverage Auto Insurance Rates Based with One AccidentLiability-Only Auto Insurance Rates with a Clean Driving RecordLiability-Only Auto Insurance Rates with One Accident
Allstate$318$416$162$212
American Family$224$310$114$158
Farmers$288$377$147$192
GEICO$179$266$91$136
Liberty Mutual$398$517$203$264
Nationwide$229$283$117$144
Progressive$283$398$144$203
State Farm$235$283$120$144
Travelers$287$357$147$182
USAA$161$210$82$107
Average$260$342$133$174
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We decided to concentrate on accidents and show you how full coverage auto insurance and liability coverage differ in cost.

The cheapest companies are GEICO, Nationwide, American Family, and State Farm.

Why not include USAA? USAA auto insurance is only for military veterans and their immediate families. Therefore, the other companies are an excellent choice for people who aren’t in the U.S. Armed Forces.

Will a not-at-fault accident affect my auto insurance for the rest of the policy?

It depends on the car insurance company. Penalties can last up to six months or more. The auto insurance company may decrease your rates after a few months if you don’t have any incidents.

Does a not-at-fault accident go on your record?

The answer is yes. Accidents are reflected on your driving record and insurance history, and accidents will remain on your driving history for at least three years.

However, the Comprehensive Loss Underwriting Exchange (C.L.U.E.) may hold on to it longer. The C.L.U.E. also shows the insurance claims you’ve made over the years.

How can I save money on auto insurance after an accident?

You should target car insurance discounts. If you currently have an auto insurance policy, try enrolling in a usage-based insurance program.

Programs like Allstate Drivewise and Nationwide SmartRide allow customers to save money on car insurance when they practice good driving habits.

Also, non-driving factors such as good credit and vehicle safety features can help you save an additional 30% on auto insurance rates.

Am I a high-risk driver after a not-at-fault accident?

The answer is no. However, the auto insurance company will raise your rates if you don’t have accident forgiveness and multiple at-fault accidents on your driving record.

What should I do if I get into an accident?

First, do not panic. As an insured driver, you’re financially responsible and capable of covering the cost of damage to another vehicle and covering expenses of bodily injuries.

You won’t determine fault by yourself, so you’ll need to contact law enforcement to establish fault.

If you’re not at fault, you can file a claim with the at-fault driver’s auto insurance company.

Take photos of the damage, get a copy of your police report, and call the at-fault driver’s insurance provider once you get your vehicle to a body shop or back home.

But you should contact your insurance company and file a claim when you’re the at-fault driver. However, you’ll need collision car insurance to get coverage for your damaged vehicle.

All collision claims require a deductible. Your car insurance company won’t issue a claim without it.

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How do I get an auto insurance policy with multiple accidents?

Multiple accidents in a short amount of time could make you a high-risk driver. Too many accidents may cause car insurance companies to reject your policy request.

But you can secure an insurance policy with high-risk auto insurance companies. Some of the best high-risk insurance companies include:

  • The General
  • Dairyland
  • Good2Go Auto Insurance
  • Acceptance Insurance
  • Direct Auto

Some of these companies may carry higher-than-average rates, but you won’t know for sure until you get a quote.

Auto Insurance Companies That Don’t Penalize You if an Accident is Not Your Fault: The Bottom Line

Multiple accidents where you’re not at fault may not affect you as much since your auto insurance company isn’t footing the bill for each accident.

But numerous at-fault accidents on your driving record will raise some concerns.

Although full coverage isn’t required, it’s something you should consider adding to your budget, even if it’s not mandatory.

Now that you know more about auto insurance companies that don’t penalize you if an accident is not your fault, enter your ZIP code into our free online quote tool to compare multiple companies near you.

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