For many people, driving is one of the most consistent activities they do on a daily basis. Whether it is to go to work, run personal errands, or travel, having a car makes getting around much easier and more convenient.
Unfortunately, with so many vehicles on the road, there is always the possibility of getting into an accident while driving. However, not only can these accidents result in severe bodily injuries and wrecked vehicles, but the financial aftermath of it all can be much greater and overwhelming.
This is where accident benefits coverage can come in handy to provide you with financial protection if you or other passengers get injured or killed in a car accident.
To gain a better understanding of this type of insurance, read our guide to learn about its importance and what benefits it offers.
How Accident Insurance Works?
In order to understand how accident insurance works, you should first know the difference between accident insurance and health insurance.
In general, health insurance covers treatment expenses that you receive after an accident, whereas accident insurance covers medical and other out-of-pocket costs that you incur after the accident. This includes emergency treatment, medical exams, hospital stays, transportation, and other services and expenses not covered by your health insurance.
The greatest advantage of accident insurance is that the payouts come in cash and directly to you which can be a big financial relief after just going through an accident. Besides this, there is no waiting period, which means you will get your money immediately. The extra cash can help you get back on track fast, without worrying about finding money to cover the costs of treatment.
Filing a claim after the accident
It is strongly advised that you start the claims process as soon as possible after the accident. To do this, you will have to call your insurance company or agent and bring in the police report, your insurance information, and a copy of the accident report from the scene. With this paperwork, your insurance company should be able to file the claim and work towards getting you the compensation you deserve.
In case your car suffered damages in the accident, a claims adjuster or auto repair shop will examine the severity of the damages and decide whether to repair or write off your vehicle. In the latter case, your ride will be deemed a total loss and you may have to start looking for ways to sell your junk car fast, either to a private buyer or take it to a junkyard to get it dismantled for its valuable parts and receive money in return.
What does your accident insurance cover?
Accident insurance is designed to cover various injuries, medical services, and treatments. Common injuries that are covered by the insurance include fractures, dislocations, skin burns and grafts, ruptured discs, concussions, eye injuries, and coma.
As for medical services and treatment, you will be provided with coverage for emergency care, inpatient and outpatient surgery, medical exams, physician follow-up visits, transportation, and therapy services like physical and occupational therapy.
Other expenses that may be covered by the accident benefits coverage are:
• Income replacement benefit;
• Caregiver benefits;
• Non-earner benefits;
• Death and funeral benefits;
• Housekeeping and home maintenance;
• Damage to personal belongings and devices.
Who should get accident insurance?
Because car accidents can happen to anyone, it is recommended that you include your whole family on your insurance policies.
For example, for adults, accident insurance can come in handy to provide you with financial protection if you are unable to work due to an injury you suffered in the accident.
The insurance will also cover children’s expenses and reimburse you if you have to stay at home to care for your injured child.
How to apply for accident benefits insurance?
Probably the best way to apply for accident benefits insurance is through your employer who may offer the coverage as part of their employee benefits package, saving you both time and money in the process.
Firstly, buying your accident insurance through your employer helps you get a comprehensive and fair-priced policy without having to compare or shop around for different options.
Secondly, depending on how your employer does it, you may also be given the option to automatically deduct the premium from your paycheck which can save you from the hassle of paying a monthly bill for it.
And lastly, you may also get more discounts which can reduce the premium of your insurance.
Final thoughts
Getting into a car accident can be one of the most stressful and traumatic experiences you could have in your life. One way of getting through these times with more ease is to get accident benefits coverage to provide you with financial protection if you or other passengers get injured or killed in the accident.
For more information, refer to our post and learn about the importance of having accident insurance.
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