Accident insurance covers the expenses incurred from accidents. These can be medical bills as well as the cost of repairing damage to property.
How it Relates to Other Types of Insurance
Car, major medical, homeowners’, and accidental death and disability insurance all fall in this category of insurance. Each one specifically sets out exactly when it will pay out.
Car insurance: injuries from a car accident.
Homeowners’ insurance: injuries that occur at home.
Major medical insurance: sports or slip-and-fall injuries. Note: major medical will usually want to know if any other policy is responsible (i.e., a school or sports venue, a business, or your own homeowners’ insurance). They will seek reimbursement from others.
Accidental death and disability insurance: If the injury leaves you permanently disabled or dead.
Policies that cover accidental injuries from all causes are also available.
Who is it For
You choose who you will cover. It can be you, you and spouse, or you and family.
How Does it Work
Report an accidental injury to your personal injury carrier in addition to your car, home, or medical insurance carrier. The personal injury policy pays according to the terms of your policy, which may be a certain amount per day for the average recovery time for that injury or whatever has not been paid by all of your other insurance policies combined.
What Types are Available
Group policies are offered by some employers as an optional choice. The benefit of purchasing a personal accident policy through an employer is the rates are lower because a large pool of individuals are included on the policy.
If your employer does not offer it, you can purchase a policy from an independent insurance agency. It will be more expensive because the group is only as large as your family members.
The major benefit of a personal injury policy is peace of mind. You know without doubt that you will receive reimbursement for the expenses incurred when someone in your family is injured.