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

• 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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1 Policygenius – What is Accident Insurance? Updated March 4, 2022. https://www.policygenius.com/disability-insurance/what-is-accident-insurance/. Accessed May 26, 2023.

2 The Balance – What is Accident Insurance? Updated February 22, 2022. https://www.thebalancemoney.com/what-is-accident-insurance-5219880. Accessed May 26, 2023.

3 GoodRx Health – Do You Need Accident Insurance? Updated November 24, 2021. https://www.goodrx.com/insurance/health-insurance/what-is-accident-insurance. Accessed May 26, 2023.

Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.

In Arkansas, Policy A37000AR. In Delaware, Policies A371AA & A371BA. In Idaho, Policy A37000ID. In New York, Policy NY37000. In Oklahoma, Policy A37000OK. In Oregon, Policy A37000OR. In Pennsylvania, Policy A37000PA. In Texas, Policy A37000TX. In Virginia, Policies A371AAVA & A371BAVA.

Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage s underwritten by American Family Life Assurance Company of New York.

Tier One Coverage

In Arkansas, Policy T37000ARR. In Delaware, Policy T37000. In Idaho, Policies T37100IDR, T37200IDR, & T37300IDR. In Oregon, Policy T37000OR. In Oklahoma, Policy T37000OK. In Pennsylvania, Policies T37000PA, T37300PA, & T37500PA. In Texas, Policy T37000TX. Not available in Ny or VA.

Coverage is underwritten by Tier One Insurance Company.

This is a brief product overview only. Coverage may not be available in all states. Benefits/premium rates may vary based on plan selected. Optional riders may be available at an additional cost. Plans and riders may also contain a waiting period. Refer to the exact plans and riders for benefit details, definitions, limitations and exclusions. For availability and costs, please contact your local Aflac agent/producer.

Aflac’s family of insurers include Aflac, Aflac New York, Continental American Insurance Company, and Tier One Insurance Company.

Aflac WWHQ | Tier One Insurance Company | 1932 Wynnton Road | Columbus, GA 31999.