Accident insurance is a form of insurance policy which offers a payout when people experience injury or death due to an accident. This type of insurance does not usually cover negligence, acts of God, or natural disasters, and the policy may include restrictions such as caps on total payouts or restrictions on payouts for activities deemed risky. Many insurance companies sell accident insurance, which can be purchased as a standalone policy or bundled in to an existing insurance policy.
Like other forms of insurance, buying accident insurance is, in a sense, a bet. The consumer pays the insurance company a premium hoping that an accident will not occur, and the insurance company writes a policy hoping that it will not have to pay out. This type of policy can be a good idea for people who lack health care coverage, ensuring that they will be able to access medical treatment after an accident, or for people with families who suspect that their family members could suffer financially if they died. By purchasing insurance for accidents, people can provide themselves with more financial security.
Accident insurance policies have payouts which vary, depending on the severity of the injuries. Some include very specific language about amounts which will be paid out in the event of losing particular extremities, for example. The payout is designed to cover medical care along with pain and suffering, and if an accident causes permanent disability, the payment may be structured to provide funds for the accident victim to live on. In the event of a death, the benefits are paid out to the listed beneficiary on the policy.
When shopping for accident insurance, people should ask about premiums and what types of accidents and events are covered. Some insurance companies cover more than others, and some are notorious for viewing all claims with deep suspicion, delaying payments until they are satisfied that a customer really does meet the terms for a payout. For people who need money to deal with immediate expenses, this can be a problem.
One of the most common types of accident insurance is car accident insurance which is purchased by most drivers to protect themselves and others in the event of an accident. Other examples include travel accident insurance policies which people can purchase before traveling, and insurance which is customized for people who work in particular industries. Such insurance can be costly, reflecting the increased risks to the insurance company; a telephone lineman, for example, will be more expensive to insure than a desk worker.