Is an Accident Insurance Policy Worth Buying?

Who should buy accident insurance?

Accidents happen and being prepared with an accident insurance policy may help with the financial aftereffects of an accident or injury.

While it is a good idea for everyone to consider an accident insurance policy, certain individuals may benefit more from such a policy. In addition to primary health insurance, an accident insurance policy may help pay for some of those out-of-pocket medical expenses and services. Accident insurance is normally paid in a lump sum benefit allowing the insured to use it for any additional needs such as rehabilitation services or medical equipment.

Particular individuals may benefit most from accidental insurance:

The advantages of an accident policy

An accident insurance policy can help if you are in an accident resulting in injury. Because benefits are paid directly to the insured, the claim process is usually expedient after the accident claim has been filed with the insurer.

An accident insurance policy may have additional features such as a hospital stay benefit or a lump sum amount for dismemberment. A hospital confinement benefit may pay a benefit, on a per day or per week, for a length of time while being hospitalized due to accidental injury.

Depending on the policy, it may only pay a one-time benefit or may pay benefits for multiple accidental injuries. If there has been dismemberment, other lump sum payments are made directly to the insured to help with out-of-pocket health costs.

Other advantages may be coverage while traveling, and full coverage on and off the job.

Rehabilitation Costs

Rehabilitation may include physical therapy, occupational therapy, or custom-fitted prosthetics and orthotics. Although major medical may pay for these services, additional expenses may not be covered. An accident insurance policy may help you with out-of-pocket expenses.

Ambulance costs and how an accident policy may help

An accident insurance policy pays a cash benefit you can use for any out-of-pocket costs a major medical insurance or car insurance policy may not totally cover.

Today, many ambulance companies are privately owned. A ride to the hospital may not be fully covered by major medical insurance or may involve out-of-network costs. Nearly 60% of ground ambulance rides were out of network in 2022.¹ Coverage under a major medical policy for ambulance services is usually only for an emergency or medically necessary event. Even if you are covered, there may be a copay, coinsurance, or deductible to pay before coverage begins. Accident insurance may help with the costs. The average costs of an ambulance ride are $940 to $1,277 according to the FAIR Health.²

If the accident requiring an ambulance involved a car wreck, most car insurance companies pay for the cost of the ambulance service if it is deemed medically necessary.

Accidental death insurance policy

Another type of accident insurance policy includes accidental death. An accident death insurance policy will pay a death benefit to your designated beneficiaries.

Speak to a licensed insurance agent about an accident insurance policy and how it works for you.

Sources:

1. FairHealth, FairHealth, https://www.fairhealth.org/article/nearly-60-percent-of-ground-ambulance-rides-were-out-of-network-in-2022-according-to-new-fair-health-study, Accessed 2024.
2. FairHealth Brief, Cost of ground ambulance service, Accessed 2024.