Santa's visit to the Black Country, which had faced cancellation, will now go ahead with a special safety feature - a seatbelt on his sleigh.
Santa will make his presence felt, despite the insurance clause
Without the belt, insurance costs would have been prohibitive for the organisers, Halesowen and Rowley Regis Rotary Club.
Now they have decided to fit the special belt, so the chubby gentleman does not fall out and injure himself.
The maximum speed of his Land Rover-towed sleigh is 5mph.
Organiser Barry Wheeler said now they have a seatbelt the insurance would cost about £200 instead of four figures.
"It does seem a bit over the top," he told BBC News.
"But the insurance won't just insure against him falling out, it will also insure against another vehicle hitting his sleigh and possibly injuring him."
Father Christmas's reprieve came as it was announced his traditional sleigh trip around the market town of Alnwick in Northumberland on a council trailer - which has run for 30 years - had been changed to a bus ride, because of insurance problems.