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Benefits 101: What Is Accident Insurance? | JRW Associates, Inc., a Raleigh Benefit Advisory

Accidents happen.  Whether you fall off a ladder, slip and break an arm, or get injured just living everyday life, an accident can happen.  Anytime.  Anywhere.

What Is Accident Insurance?

Accident insurance helps provide support when life’s most unexpected moments happen.  It makes an accident less painful financially because it helps to pay the bills that your medical insurance doesn’t completely cover.  It is important to understand that accident insurance is not intended to be a substitute for medical coverage.  Instead, it is used as additional coverage and financial assistance.

Accident insurance may be offered by your employer as a voluntary benefit.  Medical insurance doesn’t cover all of the expenses that result from an injury – you will likely owe a deductible and co-pays – and accident insurance helps fill in the gaps.

Examples of What Accident Insurance Covers:

  • Emergency treatment and medical exams
  • Hospital stays and surgical care
  • Diagnostic tests such as X-rays and CAT scans
  • Physical therapy and rehabilitation
  • Family lodging and travel needs related to follow-up care

Examples of What Accident Insurance Does Not Cover:

  • Injury due to extreme sports like bungee jumping or skydiving
  • Self-inflicted wounds or suicide attempts
  • Injury that occurs while doing criminal activities
  • Injury that occurs while under the influence of drugs or alcohol

How Does Accident Insurance Work?

You pay a premium every month for coverage which is often automatically paid through payroll deductions.  If you get injured, you submit a claim as well as any required verification for the accident. Then, once approved, the insurance payment will be sent directly to you – often in a one-time lump sum.  Some plans pay out according to your expenses up to a maximum specified in the policy while others pay out a predetermined amount based on the injury.

One of the biggest advantages of accident insurance is that the payouts come in cash, which can relieve the financial burden after an injury.  Additionally, there isn’t a waiting period, so you get the money immediately.  This money is given to you in addition to what your health insurance pays.  When you receive your payout, you can use the money to pay for any of your expenses – rent or mortgage payment, groceries, childcare, medical expenses, or other needs.  How you use the payment after your injury is up to you as you recover.

No one wants to think accidents can happen, but they do.  So, while life may dose out the accidents, remember there is insurance that can help.

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