Accident-Only Policy
What Is an Accident-Only Policy?
An accident-only policy is a type of insurance that provides benefits only when injuries result from accidents. Unlike comprehensive health or disability insurance, accident-only policies do not cover illnesses or medical conditions unrelated to accidental injury.
These policies are often used as supplemental insurance.
Why It Matters
Accidents can lead to unexpected medical expenses and lost income. Accident-only policies help provide financial support for accident-related injuries without requiring full health insurance coverage.
They are typically less expensive than broader insurance plans.
How an Accident-Only Policy Works
If the insured person is injured in an accident, the policy may pay benefits for expenses such as:
- emergency medical treatment
- hospital stays
- disability resulting from the accident
Benefits are usually paid according to the policy’s schedule.
Example
If someone breaks a leg in a car accident, an accident-only policy may provide benefits for medical care and recovery expenses.
Accident-Only Policy vs Health Insurance
- An accident-only policy covers injuries caused by accidents.
- Health insurance covers both illnesses and accidental injuries.
FAQs About Accident-Only Policies
Does accident-only insurance cover illnesses?
No. Coverage applies only to injuries caused by accidents.
Are premiums lower than regular health insurance?
Yes. These policies are usually less expensive.
Can accident-only policies supplement other insurance?
Yes. They are often used alongside health insurance.
Related Terms
