If you cause a collision for the first time, accident forgiveness keeps your insurer from raising your premium at renewal. In Ontario, this optional protection is added to your car insurance policy as the OPCF 39 endorsement. However, your at-fault accident still goes on your driving record.

Protection from higher premiums only applies if you stay with the same provider. Most companies require you to have six years without an at-fault accident to qualify for this coverage that usually costs less than $100 a year.

If you're shopping for a better car insurance rate and you have a clean record, it's worth talking to your insurer about the accident forgiveness endorsement.

What is accident forgiveness?

Accident forgiveness is an optional endorsement you can add to your auto insurance policy for an extra cost. Most insurance companies offer this coverage, and eligibility rules vary by insurer, according to the CAA Insurance Guidebook for Ontario.

With the addition of this coverage, your insurer agrees to overlook your first at-fault accident when calculating your premium at renewal. The coverage can be applied to cars, trucks, motorcycles, and motorhomes. Without OPCF 39, being found 50% or more at fault for a collision goes on your insurance record and will likely raise your premium next time you renew, as per Financial Services Regulatory Authority of Ontario (FSRA).

Drivers with long clean records often assume they don't need accident forgiveness, says Daniel Ivans, licensed insurance broker and Rates.ca insurance expert.

"I've seen all sorts of responsible drivers slide on ice or get sandwiched. If someone rear-ends you and you're pushed into another car, you're at fault. There are so many situations where good drivers don't feel like they're at fault, but at the end of the day, they are," he says.

The OPCF 39 endorsement protects both sides, he notes. It insulates the driver from losing their entire accident-free history, and it gives the insurer a client who's likely to stay longer. To see what's really at stake in that history, it helps to know how insurers grade it.

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How do insurers rate your driving record in Ontario?

Your driving record, including previous accidents and how long you've been licensed, is one of the main factors insurers use to set your premium. The better your record, the lower your premium.

Behind the scenes, insurers score that record on a star system. The scale starts at zero, which typically means a recent at-fault accident or a brand-new licence, and climbs one star for each clean year, Ivans explains. Most insurance companies max out at nine stars, though some go further. CAA, for example, has programs that recognize 11, 15, and even 20 years of accident-free driving.

"The farther away you are from being newly licensed or having an at-fault accident, statistically, the less likely you are to have one," says Ivans.

Here's what that looks like in dollars. Ivans ran a real-world example: a 41-year-old Brampton driver with a 2016 Toyota Corolla, licensed and insured for 20 years with no tickets or accidents, qualifies for CAA's 20-star driving record and an annual premium of $2,055.

Add a single at-fault accident without forgiveness, and that same driver drops to a zero-star rating, and his premium ends up increasing. "This is a very significant impact," Ivans says, and it isn't a one-year penalty. "You don't just go back to 20 years next year. Next year, you're a one-star driving record. The year after that, you're a two-star, then a three-star, and you have to earn your way back up."

That slow climb is exactly what the endorsement is designed to prevent. But it comes with limits.

Read more: How to check your Ontario driving record

What are the limits of accident forgiveness?

Two important ones, according to Ivans:

1. It works once. The endorsement applies to your first at-fault accident only. A second collision falls outside the limit with most insurers.
2. It isn't transferable. The accident stays on your driving record even if your premium doesn't change. A new insurer is able to see the collision claim and will price your policy accordingly.

"That 20-star driving record sticks [even with one forgiven collision]," says Ivans. "But it doesn't stick with the rest of the industry. Anywhere else you go, they're going to call you a zero-star driving record."

In practice, that makes a forgiven accident a reason to stay put. "I've had an accident once, and I've been with my insurance company pretty much ever since, because everywhere else the rates would have been two, three, four times as much," Ivans says.

Here's a quick summary of what the endorsement does and doesn't do:

Read next: Will an at-fault collision always increase my car insurance premiums?

Does Ontario law already protect you after a minor accident?

Yes, to a point, and this protection is separate from accident forgiveness. Under Ontario's minor at-fault accident rule, insurers can't raise your premium after a minor at-fault collision if all of the following apply, according to FSRA:

• No one was injured
• No insurer paid out a claim (you covered the damage yourself)
• Damage to each vehicle or property was under $5,000

This protection applies to one minor accident every three years. The damage threshold was raised from $2,000 to $5,000 on July 1, 2025, in line with Ontario's updated collision reporting rules.

Sounds reassuring, but Ivans cautions that few real collisions fit inside those lines. "That $5,000 threshold is almost insignificant," he says. "It's a hard checklist to hit."

Repair costs add up faster than most drivers expect.

What are the conditions of accident forgiveness?

Most insurers require around six years without an at-fault accident to offer accident forgiveness, but eligibility varies by company. In driving record terms, that means a six-star rating or better, according to Ivans. Some insurers have historically been more lenient, but those looser programs have largely disappeared.

Other conditions to keep in mind:

• Timing: The endorsement must be on your policy before a collision happens. You can't add OPCF 39 after the fact, because the accident drops you below the eligibility threshold. CAA, for example, won't add the endorsement until you're six years accident-free again.
• Policy terms: Forgiveness applies so long as no policy terms have been violated, according to Ivans. Ask your broker or insurer what would void the coverage under your specific policy.
• Renewal: The endorsement continues at each renewal with your current insurer, but a new company may not offer it to a driver with a recent at-fault claim, Ivans says.

Learn more: How your claims history affects your car insurance premium

Does accident forgiveness cover other drivers on your policy?

It depends on the insurer and on whether the driver qualifies on their own, according to Ivans. Two spouses who each have long clean records will both typically be covered under the endorsement. A newly licensed teen is a different story: because they don't meet the eligibility requirement themselves, the accident forgiveness premium doesn't apply to them as a driver.

So, what happens if that teen causes an accident anyway?

"Some insurance companies will protect the driving record with accident forgiveness if the occasional driver has an accident, and some won't," says Ivans. "It's a talk-to-your-broker situation."

For households adding a young driver, it's worth choosing an insurer that extends the protection to occasional drivers.

Is accident forgiveness worth the cost?

The price varies by company, but it's usually a modest add-on. CAA, for example, charges $85 a year, or about $7 a month, according to Ivans.

Compare that against the alternative of not buying OPCF 39. "Let's talk about the impact that an at-fault accident is going to have for at least the next nine years with most insurance companies," Ivans says. Against premiums that can double or triple, $7 a month is a small hedge for drivers with clean records.

Did Ontario's auto insurance reforms change accident forgiveness?

No. Accident forgiveness is about how insurance companies rate at-fault accidents in their pricing, and Ontario's recent reforms deal with injury coverages, a separate part of the system, according to Ivans. Insurers are pricing and applying the OPCF 39 endorsement the same way as before Ontario's July 1 auto reforms.

Read more: Will July 1 auto insurance reforms in Ontario impact you?

What does an accident forgiveness rider not cover?

Forgiveness applies to one thing: how your insurer rates your first at-fault accident. In Ontario, the endorsement won't shield you from:

• Serious traffic convictions: Convictions are rated separately from accidents, so a careless driving or other major conviction raises your premium on its own, whether or not a collision is forgiven.
• A second or subsequent at-fault collision: The endorsement forgives your first at-fault accident only; any collision after that will affect your rate.
• Demerit points. Forgiveness has no effect on points added to your licence after a conviction. Demerit points themselves don't change your insurance rate, but the conviction that comes with them does.
• Accidents in a business or commercial vehicle: The endorsement sits on your personal auto policy, so it won't apply to collisions while driving for work in a commercial vehicle.

Rules vary between insurers, so read the endorsement wording or ask your broker exactly what your version forgives.

Frequently Asked Questions (FAQ)

Does a forgiven accident stay on my driving record?

Yes. Your premium won't increase with your current insurer, but the collision remains on your driving record and is visible to any insurance provider.

Can I add accident forgiveness after an accident?

No. The OPCF 39 endorsement must be in place before a collision occurs. After an at-fault incident, you would no longer meet an insurer's clean-record eligibility rules.

When can you purchase accident forgiveness?

Accident forgiveness can be purchased annually when renewing a policy or when switching to a different insurance provider.

When are you not covered by an accident forgiveness rider?

An accident forgiveness endorsement will not apply if you're convicted of a Criminal Code offence related to an accident, such as impaired driving, or if there's a major conviction on your record like driving without insurance.

Does accident forgiveness transfer if I switch insurance companies?

No. Accident forgiveness is an agreement with your current insurer. A new company will rate your accident as if it was never forgiven.

Do I need accident forgiveness if Ontario already limits rate increases for minor accidents?

Ontario's minor at-fault accident rule only applies when no one is injured in a collision, no claim is paid, and damage stays under $5,000 per vehicle. Few real collisions meet all three tests, so forgiveness covers the first at-fault claims that fall outside them.

How much does accident forgiveness cost in Ontario?

The cost of accident forgiveness varies by insurer. CAA charges $85 a year, or roughly $7 a month.