By Tahir Abbas, Editor · Last updated 1 November 2026
Accident insurance pays a lump sum or regular benefit if you are injured in an accident. It is designed to cover the costs that follow an injury — medical bills, time off work, and the extra expenses of recovery — rather than the long-term costs of illness, which health and income protection policies address.
This guide explains what accident insurance typically covers, what it leaves out, who it suits, and how to compare policies before you buy.
What accident insurance typically covers
- Medical treatment following an accidental injury, including hospital stays and surgery
- A lump sum for serious injuries, such as fractures, dislocations or loss of sight or limb
- A benefit if an accident leaves you temporarily unable to work
- A payment to your family if an accident causes death
- Some policies cover dental injury, physiotherapy and rehabilitation after an accident
What accident insurance typically does not cover
- Illness — accident policies cover injuries from accidents, not sickness
- Injuries from activities specifically excluded, such as some extreme sports
- Self-inflicted injuries and injuries sustained while committing a criminal act
- Injuries sustained under the influence of alcohol or drugs, on many policies
- Pre-existing injuries or conditions
Who accident insurance is for
People in physically active jobs or hobbies, anyone without generous sick pay, and families who want a financial buffer if an accident stops the main earner working. It is often bought alongside health or life cover, not instead of it.
How to choose and compare accident insurance
- Check which injuries trigger a payout and how much each pays
- Compare waiting periods and any limits on temporary disability benefits
- Confirm your job and hobbies are not excluded
- Look at the overall benefit cap, not just the headline lump sum
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Sources and Disclosure
This guide is general information, not financial advice. Plan features described here are general and vary by insurer and state; always read the sample policy before you buy. For the rules governing insurance in your state, see the consumer resources of the National Association of Insurance Commissioners (NAIC). Disclosure: Being Insurance is an independent comparison site. We may earn a commission when you buy through links on this page. That never changes which companies we list or the order we present them in.