What is accident insurance?
It’s a type of supplemental health insurance that provides financial protection in the event of an accident. It can help cover unexpected medical expenses and other costs that can come about as a result of an accident, like out-of-pocket expenses or transportation services. An accident insurance policy will typically provide coverage for a wide range of accidents, including those that occur at home, or while participating in sports or other recreational activities (although it's important to note that actual benefits vary by insurance company and specific plan). Benefits are paid directly to you — not the medical provider — and amounts vary depending on the nature of the accident and the specific terms and conditions of the plan. It's important to note that like other supplemental health insurance plans, accident insurance is not a substitute for regular health insurance coverage, nor can it take the place of short-term health insurance while traveling abroad.
Is accident insurance worth it?
There is no single answer to this question, because it depends on your individual situation. Does your lifestyle or occupation make you more likely to sustain an accidental injury? Do you have a high-deductible health plan that may leave you with high uncovered expenses? Would $2,000-$3,000 in unanticipated costs strain your budget? If you answered yes to any of these, accident insurance could be very helpful.
On the other hand, if you have a low-deductible plan or a large emergency fund and are well positioned to handle the unanticipated expenses that come with an accidental injury, you might not need the extra coverage. Here’s a quick scenario that may help you decide:
When Maria fractured her wrist in a bicycle accident and went to the ER, the cost for that visit was $2,715, which happened to be the average cost of an emergency room visit in the US in 2025.4 Since she had only paid $1,650 towards her health plan’s $2,000 deductible that year, Maria had to pay the first $350 before her health insurance paid for care; then co-pays, and coinsurance on the remaining allowed charges (another $275); and $450 in out-of-pocket costs for the ambulance (which is about the national average).5
In the weeks following her ER visit, she had more out-of-pocket costs for two follow-up doctor visits, two additional x-rays, and four physical/occupational therapy sessions. She also had added costs for transportation and meal deliveries because driving and cooking were difficult for her during the first week.
Maria got in touch with her accident insurance carrier and was able to easily submit the claim and needed documentation online. Within 10 days, she received the following benefits according to her plan’s payment schedule:
Ambulance ride | $200 |
ER visit | $200 |
Wrist fracture | $1,000 |
3 X-Rays | $600 ($200 per X-ray) |
2 follow-up doctor visits | $150 ($75 per visit) |
4 physical/occupational therapy sessions | $300 ($75 per session) |
Total benefits | $2,450 |
Note: These are representative benefits only. Benefit amounts and covered items vary considerably among plans.
Maria’s accident insurance benefits, totaling $2,450, were deposited directly into her bank account. That gave her finances a much needed boost at a stressful time and helped her focus on recovery without having to worry about how to pay for all her added expenses.
What isn’t covered by accident insurance?
Remember: Accident insurance is not a substitute for major medical insurance coverage. Accident insurance generally does not cover illnesses, chronic conditions, or injuries that are not specifically caused by a covered accident. In addition, some plans exclude injuries caused by certain risky or illegal activities, and some plans exclude injuries caused by self-inflicted actions. Finally, most plans have caps on benefits.
That said, it’s important to note that while accident insurance is limited in scope, there are other types of supplemental health insurance that pay benefits for many of the issues not covered by accident insurance. For example, critical illness insurance pays benefits for serious diagnoses such as stroke and heart attack, cancer insurance pays benefits for cancer diagnoses, and hospital indemnity insurance pays benefits should you be hospitalized.
Does accident insurance cover accidental death?
It depends on the policy or plan. Standard accident insurance is mainly for injury-related expenses, while accidental death coverage is usually covered in a separate AD&D policy or life insurance rider. That said, some accident policies may include an accidental death benefit. If accidental death coverage is important to you, be sure to ask about it before making a coverage decision.
Can I get accident insurance if I don’t have it through work?
Yes. You can secure an accident insurance policy even if you don’t get it through work. Many insurers — including Guardian — offer individual policies at very affordable rates.
