Accident insurance is not the same as medical insurance. When an accident occurs, you might find yourself at the hospital. You might even become incapacitated due to an illness or injury. Accident insurance covers several costs, including transportation and housing when related to medical care.
An accident policy pays out only when an accident occurs. It is not the type of policy that covers acts of god or negligence. There is also a cap that restricts the amount of payouts to each policyholder.
Who Needs Accident Insurance?
Just about anyone can use accident insurance. If you’re worried about expenses because of an accident, then this insurance might be beneficial. If you have only a small amount of healthcare coverage, then this insurance can ease the financial burden should something happen.
The main benefit of this insurance is it pays money should a major accident occur. The policyholder will receive a payout that covers medical treatments and miscellaneous expenses.
Accident insurance is available as a separate policy or can be added into an existing one. This provides more financial security for you and your family.
How it Works
Accident insurance kicks-in after an accident occurs. The insurance company reviews documents and evidence to learn about the accident. They determine if you have a claim.
The insurance company reviews the facts, and either makes a payout or declines a payout. In some cases, the payout is divided into monthly payments. That is usually done in the case of a permanent disability where the person cannot ever return to work.
Types of Insurance
Some car insurance companies provide this type of insurance because car accidents are common. It is also possible to purchase this insurance as part of a travel insurance policy or for certain types of jobs. An employer might also offer this insurance to employees.
Accident insurance is beneficial to those who work in dangerous conditions. Speak with an insurance agent to see if this insurance is right for you.