State Farm doesn’t advertise accident forgiveness, but regulatory records show it has a limited version, at least in some states, for policies that have been with State Farm for nine years or more. State Farm hasn’t published that program’s terms or the states where it applies. For most drivers, the rule that matters more is State Farm’s Accident-Free Discount. A chargeable accident can cost you that discount, and depending on your state’s rules it can also add a surcharge. State Farm doesn’t publish how much either one changes your premium.
Key Takeaways
- State Farm’s website doesn’t list accident forgiveness as a discount or add-on, so it isn’t something you can pick or buy when you set up a policy.
- In a 2024 letter to Maryland regulators, State Farm referred to its “accident forgiveness program” and said a policy had to be in effect for nine years to qualify.
- An at-fault accident can cost you the Accident-Free Discount, which State Farm says you may receive after three continuous years without a chargeable accident. In a 2025 Maryland case, losing that discount was what raised the premium.
- What counts as “chargeable” comes from each state’s filed rules, so ask your agent how a specific accident will be rated before you assume the worst.
Does State Farm Offer Accident Forgiveness?
Not as an advertised feature. State Farm’s main car insurance discounts page lists an accident-free discount and safe driver programs, with no mention of accident forgiveness. Its article on whether insurance increases after a claim only suggests checking “whether your policy includes any forgiveness or savings feature.”
Its rating rules are another matter. In a July 2025 Maryland administrative decision about a State Farm surcharge, the judge noted that State Farm told the Maryland Insurance Administration the policyholders “were not eligible for the Licensee’s accident forgiveness program because the Policy had not been in effect for nine years.”
So the protection exists, at least in Maryland, and it depends on how long your policy has been with State Farm. The older Ohio filing covered below also required no chargeable accidents in the prior nine years. Customers with fewer than nine years wouldn’t qualify under either description. RateFrog’s guide to what accident forgiveness is covers how these programs usually work.
How State Farm Prices an At-Fault Accident
State Farm’s state discount pages, such as the Maryland discounts page, describe the Accident-Free Discount this way: once your car “has been with State Farm Mutual Automobile Insurance Company for at least three continuous years without a chargeable accident during this period, you may receive a discount.” The discount “may increase over time” with no chargeable accidents.
Newer customers may get a Good Driving Discount instead if every household driver has gone three years without moving violations or at-fault accidents.
The Maryland decision shows how this plays out. State Farm’s Accident Record Rating Plan (effective April 29, 2024 in Maryland) treated a Maryland policyholder’s accident as chargeable after a binding intercompany arbitration found the policyholder solely responsible for the accident. The premium increase came from removing the policy’s “six-year accident-free discount.” The dollar figures are redacted in the public decision.
What a 2013 Ohio Filing Shows
State Farm doesn’t publish its surcharge or discount percentages, but rate filings with state regulators spell them out. A 2013 Ohio rate and rule filing for State Farm Mutual is one public example. Treat it as an illustration only: the figures are from 2013, apply only to Ohio, and may be outdated. They are not current State Farm pricing in Ohio or any other state.
| Rule | Ohio filing effective July 15, 2013 (may be outdated) |
|---|---|
| When an accident is chargeable | At renewal, State Farm recorded payments of $750 or more (property damage liability plus collision) |
| Accident surcharge | 10% for a first chargeable accident in three years, rising to 30% or 50% with more accidents |
| How long a surcharge lasts | Three years from the renewal date it was first applied |
| Accident-free discount | 15% after three years, 20% after six, 25% after ten |
| Built-in forgiveness | Discount continues if the policy has been in force nine years with no chargeable accidents in the prior nine years |
For drivers short of nine years, a chargeable accident still cost the discount, but the surcharge was waived for drivers at the six- or ten-year discount level and cut to 5% for drivers at the three-year level, as long as they had no other chargeable accidents in the three-year period. The filing doesn’t say whether the regular accident surcharge also goes away for a driver who keeps the discount under the nine-year rule.
Example: Two Drivers, One Accident Each
This hypothetical example uses the 2013 Ohio rules only to show how tenure can change the outcome. It isn’t an estimate of what State Farm charges today, and your state’s current rules may differ, and RateFrog’s State Farm car insurance guides cover related topics like grace periods and cancellations.
- Driver A has insured the same car with State Farm for 11 years with no chargeable accidents. After one at-fault accident, the policy meets the nine-year test, so the accident-free discount continues. The filing doesn’t say whether a surcharge still applies.
- Driver B has been with State Farm for four years. After the same accident, Driver B loses the 15% discount and, under those 2013 rules, picks up a reduced 5% surcharge. Driver B would need three more years without a chargeable accident to start earning the discount again.
What to Do After an At-Fault Accident With State Farm
- Ask your agent how the accident will be rated. Ask whether it’s chargeable, which discount changes, whether your state’s rules include the nine-year protection and when any surcharge comes off. State Farm says it’s “hard to say exactly how much your premium might change or for how long, based on a single claim.”
- Look at other discounts. State Farm says Drive Safe & Save gives an initial discount for enrolling, with possible savings up to 30% based on how you drive. It isn’t available in California, Massachusetts or Rhode Island.
- Compare at renewal. Other insurers will see the accident too, and leaving resets your State Farm tenure, which matters if you’re close to nine years. Still, you can compare car insurance quotes to see whether staying makes sense. Quotes are estimates until an insurer issues a policy.
Frequently Asked Questions
Does a Not-at-Fault Accident Raise State Farm Rates?
It might not. State Farm says not-at-fault claims “may be treated as non-chargeable depending on your insurer and state rules.” The older 2013 Ohio filing treated accidents as not chargeable with sufficient evidence that the driver was less than 50% at fault, the car was lawfully parked, or the driver was rear-ended and not convicted of a moving violation. State Farm also notes that even a loss that isn’t surcharged “may still affect savings, eligibility or underwriting decisions.”
Can You Dispute a State Farm Surcharge?
In Maryland, yes. Under Maryland Insurance Article § 27-614, an insurer generally must mail written notice at least 45 days before a premium increase takes effect, and you can protest to the Maryland Insurance Administration within 30 days of the notice’s mailing date. For an increase of more than 15% on the whole policy, you can also ask for a hearing, where the insurer has to prove the increase follows its filed rating plan. In the 2025 case, the judge upheld State Farm’s surcharge because its at-fault finding matched a binding arbitration decision and its filed plan. Other states have their own complaint processes through the state insurance department.
How Does State Farm Compare With Progressive and GEICO?
Progressive and GEICO both describe accident forgiveness programs on their websites, while State Farm’s version shows up only in regulatory records. RateFrog explains how Progressive’s accident forgiveness works in a separate article.
For GEICO, see whether GEICO has accident forgiveness.
Sources
- State Farm: Car Insurance Discounts
- State Farm: Car Insurance Discounts in Maryland
- State Farm: Will My Insurance Increase After a Claim?
- Maryland Office of Administrative Hearings: MIA-SUR-30-24-27825 (July 10, 2025) (PDF)
- State Farm Ohio Private Passenger Auto Filing SFMA-128971311, effective July 15, 2013 (PDF)
- Maryland Insurance Article § 27-614