Personal accident cover will pay a lump sum if you suffer life-changing injuries or die in a car accident. It can also be called “Personal Injury cover”.
Personal accident is often included in fully comprehensive policies, or it can be an add-on to other policies.
Some car insurance providers extend this benefit to named drivers, and in some cases passengers. Unlike most insurance features, it pays out a fixed amount for specific outcomes, rather than reimbursing you for costs.
Here we take a look at personal accident cover in more detail, what’s included and how to add it to your car insurance.
What does personal accident cover payout for?
Most car insurers list the events that qualify for payment in the policy wording. Common reasons for a personal accident cover payout include:
- Death following an accident
- Loss of a limb
- Permanent loss of sight
- Other permanent injuries that meet the policy’s definition
The wording matters here, because the payout is usually linked to a defined list, not a broad promise to cover any injury.
Who is covered under personal accident cover?
Some policies cover only the policyholder while others include named drivers. A small number may include passengers automatically.
It is worth checking the schedule or key facts document as part of your car insurance policy, as the cover can look similar across providers while applying to different people.
You may also see conditions around eligibility, such as age limits. Some policies include exclusions as well, for example if the person was not wearing a seatbelt.
How is it different from medical expenses cover?
Personal accident cover provides a set benefit for serious outcomes. It is not the same as cover that pays for treatment, rehabilitation, or day-to-day costs.
It also works differently from income protection, which is aimed at replacing earnings while you recover from a car accident.
A simple way to think about personal accident cover is that this add-on pays a set amount depending on your injury. It won’t be adjusted for your medical bills.
Is personal accident cover worth having?
It depends on what protection you already have. Some people have similar cover through life insurance, workplace benefits, or separate accident policies. In that case, paying for the same type of benefit twice might not add much.
For others, the additional lump sum payment from personal accident cover can be useful as a backup, especially if time off work would be difficult to manage financially.
Be sure to check the payout amount, the cost of the cover, and check the qualifying conditions. Then you can decide if it’s good value and fits your needs.
How much does personal accident cover cost?
Personal accident, also known as personal injury, if often included in comprehensive insurance policies.
You may be able to pay a small amount extra per year to add it to a third-party only policy, or to increase the payout amounts.
The cost will depend on the insurer, the payout level and who is included.
Summary
Personal accident cover is an insurance feature that pays a lump sum for life-changing injuries or death.
- Also known as Personal Injury cover
- Often included in fully comprehensive policies or available as an add-on
- It applies to people, not damage to the vehicle
- Who is covered and what triggers a payout depends on the policy wording
- It can overlap with other insurance you may already have
Personal injury cover is included on all Marshmallow policies. The payout limit varies by plan, so to see which is right for you, check out car insurance options.
