If you are injured or killed in a car accident, you may be able to get support for yourself or your loved ones. This is where personal accident coverage or personal injury coverage plays an important role.
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traffic accidents can be traumatic. But while vehicles can be repaired or replaced, recovering from the physical effects of a crash could be much more difficult.
Here’s our rundown of personal accident coverage, what it covers and how to make sure it’s the right policy for you.
what is personal accident coverage?
Personal accident insurance pays if you are seriously injured or killed as a result of a car accident. it can also cover you if you become totally and permanently disabled.
Personal injury insurance policies generally pay a set amount of money for specific injuries. depending on the level of coverage, depending on the financial customer ombudsman service.
For example, it could pay £100,000 for the death of an insured person or £10,000 for the loss of a limb. the policy document should indicate the level of coverage provided for different injuries.
If the accident is not your fault, the other driver’s insurer must pay any personal injury claims. if it’s her fault, she should claim her own policy, as long as she has it.
what does personal accident insurance cover?
The type of accident covered would depend on the insurer. you should always check the specific wording in the policy. Claims can typically be made for the following reasons:
- total disabling
- permanent or total loss of sight in 1 or both eyes
- permanent or total hearing loss in one or both ears
- permanent loss of any limb above the wrist or ankle
- permanent loss of use of any limb above the wrist or ankle
- Do you have enough savings if you are out of work for an extended period?
- Do you have any income protection policies that can be activated?
- If you don’t survive the accident, do you have adequate life insurance?
- The amount of coverage you need depends on your financial circumstances, such as your regular income and any expenses.
- It’s also worth checking to see if you already have this coverage if you have a life insurance policy.
- What does personal accident insurance not cover?
- what is covered?
- what is excluded?
- Does the coverage have any limits?
- Are there other family members included in the policy?
- where is the policy valid? – may be UK only or may be covered outside the country.
Do I need personal accident coverage?
It depends on your circumstances, including how much you can afford, the coverage you already have, and your attitude to risk. More importantly, you need to establish how you or your family would be affected if you were seriously injured.
ask yourself the following questions:
There are exclusions with any policy, so it’s important to review the terms and conditions carefully. for example, don’t expect everyone in the car to automatically be covered by the policy.
Often, these policies stipulate exactly who should receive a payment. they can often be the driver and the companion of him.
Other exclusions may also apply. For example, if you are injured while driving under the influence of alcohol or drugs, you will not receive any money.
Similarly, it may not pay if people were not wearing seat belts, were participating in a race or rally, or if the accident was self-inflicted.
fine print personal accident coverage
If you’ve decided a personal accident policy is right for you, be sure to pay close attention to the fine print on the policy. this is so you know exactly what you are getting. ask yourself the following questions:
Do I have personal accident coverage with my car insurance?
Your car insurance may include personal accident coverage, but it depends on the policy and your insurer.
Some comprehensive auto insurance policies don’t include personal accident protection, some offer it as an add-on. others provide relatively modest sums of £5,000 for the policyholder and partner as standard.
Unfortunately, those sums may not go far, especially if you need ongoing treatment.
This is why you can pay more to secure a larger sum, perhaps up to £100,000, in case the worst happens.
Such protection is less likely to be offered if you only have third-party (or third-party, fire and theft) coverage, so it’s worth considering.
how much does personal accident coverage cost?
You can buy personal accident coverage as a stand-alone policy or it can come as part of an existing policy, like your auto insurance.
the cost depends on many different factors. These may include your age, lifestyle, profession, and address.
It is important to shop around and compare prices. make sure you’re not only choosing the policy that’s right for you, but that it’s at the best price possible.
how do i make a personal accident insurance claim?
If injured, seek medical attention immediately. this may be calling an ambulance or speaking to the police at the scene of the accident.
going to the hospital, or visiting your doctor, creates a paper trail of medical documents that could help support your claim.
Keep any travel receipts or proof of other expenses you incur, as you may need to show them as proof at a later stage.
It is also necessary that you contact your insurer as soon as possible to report the accident and start the claim procedure.
How quickly you get paid depends on the individual insurer and the specific circumstances of the accident.
if you are not satisfied with your insurer’s response after 8 weeks, you can always take your case to the financial ombudsman service (fos). this organization investigates many complaints each year.
but if you get a “final decision” letter from your insurer, you can go straight to fos. you have 6 months to contact fos after receiving your letter.