How Accident Insurance Works

Accident insurance will help you pay for out-of-pocket and medical costs that you may be liable for after an injury from an accident. This includes hospitalizations, emergency treatment, medical exams, and other expenses like lodging and transportation needs. Accident insurance is a great way to give yourself a safety net that fills in any gaps your medical insurance and other policies may leave.

Below, we’ll give you a quick overview of what accident insurance is, what it does and doesn’t cover, and more.

What is Accident Insurance?

Accident insurance is a fixed indemnity insurance plan, and it gives any policyholder protection in the event they’re in an accident. In most instances, it involves injuries sustained during an accident, and someone could be fully or partially responsible for causing it. They can offer coverage for life-changing disabling events or minor injuries. Accident insurance is considered a supplemental policy, so you can use it in tandem with your medical, auto, or employment insurance.

How is Accident Insurance Different from Health Insurance?

Health insurance and accident insurance are different types of policies. Health insurance will help pay for immediate treatment after an injury, and accident insurance will pay out a fixed sum for injuries sustained due to an accident.

While health insurance pays directly to the medical service provider, accident insurance pays directly to you so can use the money as you see fit. That means you can use it for hospital copayments, deductibles, or other services your health insurance leaves you out-of-pocket. The payment will come to you in cash, and there isn’t a waiting period, so you get your money right away.

What Does Accident Insurance Cover?

Accident insurance will cover qualifying injuries, and these can include limb loss, paralysis, broken bones, lacerations, or burns from an accident. If there is an accidental death, this supplemental policy will pay out to your beneficiary.

For example, Carlos is an avid DIYer. He was painting his living room and fell off a ladder and broke his leg. He went to the emergency room to receive treatment, and then he went to orthopedics to set the bone and apply a cast. Once he was done, his doctors advised him to use crutches to get around and attend physical therapy. Carlos would be able to use his accident insurance benefits to pay for the out-of-pocket expenses which were not fully covered by his health insurance.

Choose Your Accident Insurance Policy

United Benefits Specialists can help you choose the best accident insurance policy for your situation. Get in touch to compare options and start protecting your paycheck.