Personal Injury Glossary: Accident Insurance

Accident insurance is exactly what you’d expect—an insurance policy that pays a benefit in the event of accidental injury or death. Accident insurance policies can vary widely in benefit amount and in what sort of accidents are excluded. Common exclusions include accidental injury sustained fighting in a war, while under the influence of illicit drugs, or while playing in a professional sporting event.

Payments from accident insurance are meant to supplement any benefits from life or health insurance. Unlike health insurance, which pays only the victim’s medical expenses, accident insurance pays a fixed cash benefit in the event of accidental injury or death. The beneficiary can use this money in whatever way he or she chooses.

Receiving an accident insurance benefit does not necessarily preclude an injured person from filing a personal injury lawsuit.