Accident insurance provides an accessible and convenient way to receive a lump-sum payment when you’re injured. From medical expenses, lost wages, or funeral costs, it helps keep your life on track.
If your family leads an active lifestyle and your health insurance only provides limited coverage, or managing out-of-pocket accidents would be challenging under your current plan, then this type of coverage may be ideal for you.
1. It pays for medical expenses
Accident insurance provides financial coverage for injuries sustained as a result of an accident. It’s an affordable way to cover out-of-pocket medical expenses and can serve as an additional layer of protection on top of other health insurance coverage you may already have.
Finding yourself injured can be a harrowing experience, and the financial toll it takes on your life. Having the proper type of insurance can give you peace of mind and allow you to focus on recovery.
Take for instance your child who is injured during a football game and needs medical attention. They would go to the ER where they receive x-rays of their ankle before receiving cast restraints.
Unfortunately, his medical bills could run into thousands of dollars. Without accident insurance, he would be required to cover all those costs out-of-pocket before the hospital covered any benefits from his care.
Thankfully, many workplaces offer accident insurance benefits that can cover these out-of-pocket expenses. Accident insurance is an efficient and cost-effective way to safeguard yourself and your family – talk with an HR representative about adding it to your benefits package today!
2. It pays for lost wages
After a car accident, you may find yourself unable to work for some time and unable to pay your bills. If you were able to recover from your injuries, however, you may be eligible for a lump sum payment which can help put you back on track financially.
Depending on the type of policy you have, accident insurance may also cover lost wages. This compensation is based on how much money you would have made if you hadn’t missed work due to an injury.
You can prove you missed work with various pieces of evidence, including documentation from your employer. This may include a Wage Verification Form and previous pay stubs or tax returns.
Other documents you can use to support your claim include medical records and hospital receipts. In addition, a letter from your doctor detailing why you were unable to work and how long needed was out of the workplace is recommended. Lastly, if you are self-employed, ensure to submit your tax return.
3. It pays for property damage
If you’ve ever been involved in a car accident, then you understand the significance of having property damage liability coverage. This pays for repairs to the other driver’s vehicle after any dents, scratches, and other damages are repaired.
The cost of repairs after an accident, especially if the other driver was at fault, can quickly add up. Depending on your policy, you may have to pay a deductible before your insurance company will cover the remainder of the expense.
Accident insurance not only pays for medical expenses but also covers any damage done to your belongings. This could include cars, houses, mailboxes, and fences.
Your personal belongings can be worth a lot of money and be irreplaceable or sentimental. Damage or destruction to these valuables can have an enormous effect on your quality of life. Accident insurance helps you get back on track, even helping to recoup lost income if you become disabled. These cash payments can be put towards things like rent/mortgage payments, groceries, bills, and childcare needs.
4. It pays for legal fees
Accident insurance is a type of supplemental policy that can be invaluable when it comes to cover out-of-pocket medical costs. It covers covered injuries sustained during an accident, such as a broken leg or neck ailment.
Additionally, it offers a cash payout in the event of accidental death and has numerous other advantages as well.
Individual or group accident insurance may be available, depending on the provider. Typically, however, the more comprehensive your coverage, the higher your premiums will be.
One of the most essential features of your policy is a money-back guarantee, which guarantees that if you don’t claim your benefits within an agreed-upon period of time, there won’t be any financial obligations to pay.
Your attorney’s fee will depend on a few factors but is typically between 33% and 40% of any settlement or award you receive. Some legal firms take cases on a contingency basis – meaning you won’t have to pay them until they successfully resolve your case for you.
5. It pays for funeral expenses
If you experience the loss of a loved one in an accident, funeral expenses can be overwhelming and devastating. Whether you choose to hold a wake or formal funeral, there are numerous expenses involved with planning the ceremony and preparing for it.
Thankfully, some insurance policies will cover funeral costs after a car accident. This type of policy, known as accidental death coverage, typically provides between $5,000 to $15,000 in funeral benefits.
Before the insurance company will cover your expenses after an accident, you may need to file a claim or lawsuit against the negligent driver who caused it. This can be an emotionally draining process for the family of the victim and should be left in the hands of an experienced personal injury lawyer.
Uninsured/Mutual Carrier (UM) insurance pays for funeral expenses as well as medical bills, lost wages, and the survivors’ mental pain and suffering. Unfortunately, the decedent’s family must first establish a probate estate before the UM insurer will issue the check.
6. It pays for pain and suffering
Pain and suffering are integral components of any personal injury case. This refers to both mental and physical discomfort you endure as a result of an accident.
If your injury is permanent or an ongoing condition that affects daily living, then you may be eligible for compensation from your insurance company for pain and suffering. This money can help ease the financial strain caused by your injuries.
The amount of compensation for pain and suffering depends on several factors. Typically, insurance companies use a computer program to calculate how much they should pay out.
They take your actual monetary damages such as medical bills, property damage, and lost wages, and multiply them by a number between 1.5 to 5 depending on how severe your injuries are. The higher this multiplier is, the more money you may receive for pain and suffering.
7. It pays for rehabilitation
Recovering from a car accident involves getting therapy, and most insurance companies will cover this expense. Depending on how serious your injuries are, you may require months or even years of therapy to fully recover.
Treatment is tailored to each individual’s individual needs and may include physical therapy, counseling, and other medical services. These therapies help you heal and regain normal life functions once more.
You may want to consider finding a rehabilitation center that will work with you on creating either a payment plan or a sliding fee scale. This option can be particularly helpful for people on limited incomes or who have difficulty keeping up with their bills on a regular basis.
Rehab insurance is an invaluable way to guarantee you get the medical care you need without worrying about how much it will cost. This option may be especially beneficial for those with high deductible health plans or those injured in an accident, as it makes a major difference in recovery and financial security, serving as an additional layer of coverage alongside other forms of health insurance.
8. It pays for the loss of consortium
If you are the spouse or domestic partner of someone who has died or been severely injured in an accident, you may be eligible to file a claim for loss of consortium. This type of claim is unique within personal injury cases and seeks to compensate family members for the irreparable loss of a close relationship.
A serious injury can have profound effects on someone’s life, particularly their marriage.
After a serious back injury, spouses may no longer be able to walk their dog around the neighborhood or assist with household tasks due to disability. These types of non-economic damages can be included in a loss of consortium claim.
Unfortunately, it can be difficult to put a monetary value on the suffering endured by spouses when their intimate relations are disrupted. Therefore, courts and juries often use judgment when determining if non-injured spouses deserve compensation for loss of consortium.