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How Does Accident Insurance Work?

Accidents can take anyone by surprise. Additionally, an injury can leave you out of work and with high medical costs, potentially putting financial strain on you and your loved ones. Accident insurance policies are designed to alleviate these financial concerns by paying you a lump sum to help cover injury-related costs and even help by filling in some of the gaps in your income. Read this article to learn how accident insurance works, how much it typically costs, and how to file a claim with your policy.

What is accident insurance, and how does it work?

Accident insurance is a type of supplemental insurance that can help the policyholder cover medical costs or living expenses due to a covered accident that causes the policyholder to be injured. The policyholder maintains their accident insurance coverage by paying regular premiums.

Accident insurance can be used to help replace some lost income, but it is designed more with any accident in mind, whether it occurred at work or not. Also, this type of policy pays out a lump sum. On the other hand, disability insurance helps pay an income stream if you get an injury that keeps you from working. So, these policies can complement each other. Disability insurance can help replace income, whereas accident insurance can help you pay for treatment and recovery.1

Aflac offers accident insurance policies to help you and your loved ones cover injury-related costs without debt or financial stress.

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Personal vs. group accident insurance

Many employers offer group accident insurance in employee benefits packages. On the other hand, you can get personal accident insurance outside of work through an insurance provider. Here are some key differences between personal and group accident insurance:

  • Cost: Group accident insurance may cost you less because the insurer spreads the risk among many people, and your employer may cover part of your premiums. Personal accident insurance may cost more since the risk is spread among fewer people, and you must pay all premiums.
  • Choice: With group accident insurance, you are limited to your workplace plan's policy term options. Personal accident insurance can offer much more choice because you can shop with multiple insurers to compare premiums, coverage, and terms.
  • Portability: You can’t take your group accident insurance with you if you change jobs, get laid off, or retire. However, personal accident insurance follows you everywhere if you’re current on premiums.
  • Underwriting: Personal accident insurance policies may have a more complex underwriting process. Group accident insurance tends to have simpler underwriting since it is based on the group’s risk, not each individual’s risk.

How much does personal accident insurance cost?

Personal accident insurance policies generally cost anywhere from $5 to $50 per month on average.3 Your personal accident insurance premiums can vary by many factors, such as:

  • Age
  • Your state
  • Insurer
  • Job
  • Coverage amount
  • Deductible

How to make an accident insurance claim

Filing an accident insurance claim involves several steps:3

  • 1. Contact your insurer: Inform your insurer that you suffered an injury in an accident. Give them your policy number. Also, provide them with the accident’s date, time, location, and other necessary details.
  • 2. Seek treatment: Get medical treatment for injuries and keep related documentation. That documentation can include medical expense receipts, health insurance claims for treatment, and prescriptions for medication.
  • 3. Fill out paperwork: Complete the forms your insurer provides you (either online or hard copies) with the information needed to evaluate the claim.
  • 4. Cooperate with the claims adjuster: A claims adjuster works with you to evaluate your claim. Give them all documents and information or documentation they ask for to minimize the investigation’s time and get your claim approved faster.
  • 5. Receive your payment: After reviewing and approving your claim, your insurer will send payment. Payment amounts will vary by your coverage amount, the extent of your injury, and the policy’s terms. Payouts are generally lump sums, but you may be able to opt for different payment methods, such as ACH or a physical check.

Get an accident insurance quote

Nobody can predict accidents, even if they’re cautious. Getting injured can also create financial turmoil, which can only add to your stress. Accident insurance can help guard against that by providing an affordable safety net in case of injury or death. Chat with an Aflac agent today to learn how you can gain added peace of mind and financial security with an accident insurance policy.

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