What Is Personal Accident Cover in Car Insurance?
Table of Contents
When you’re reviewing your car insurance policy, you may come across an optional extra called personal accident cover. But what is it, and do you really need it?
Personal accident cover provides financial compensation if you or a named passenger are seriously injured or killed in a car accident. It’s designed to help with the financial impact of a life-changing event, regardless of who was at fault.
Key points
What Does Personal Accident Cover Include?
While cover limits and terms vary between insurers, most personal accident policies offer:
- A lump sum payout for serious injuries like loss of sight, limbs, or permanent disability
- Compensation in the event of death following a car accident
- Cover for both the policyholder and named drivers, and sometimes passengers
The payout amount typically ranges from £5,000 to £100,000, depending on your insurer and level of cover.
What’s Not Usually Covered?
Personal accident cover does have exclusions. Most policies won’t cover:
- Injuries sustained while breaking the law (e.g. drink-driving)
- Accidents that happen outside the insured vehicle
- Non-fatal injuries that aren’t classified as permanent or serious
It’s important to read the policy wording to understand the limits, exclusions, and any specific terms.
Do I Need Personal Accident Cover?
This type of cover is optional but can offer valuable peace of mind. It’s especially worth considering if:
- You don’t have separate life insurance or critical illness cover
- You regularly carry passengers
- You want added financial protection for worst-case scenarios
That said, if you already have other forms of protection in place, you may not need it as part of your car insurance policy.
Is personal accident cover included as standard?
Not always. Some comprehensive policies include a basic level of cover, but higher limits are often sold as an add-on.
Can I add it mid-policy?
Many insurers will allow you to add personal accident cover at any time, just check if there’s an admin fee.
Does it cover passengers too?
Usually, yes. Most policies cover named drivers and sometimes passengers, but this varies by insurer.
Is it worth the cost?
It depends on your needs. For a small extra premium, it can provide valuable support in a serious situation.
In Summary
- Personal accident cover pays out if you or others are seriously injured or killed in a car accident
- It’s often an optional add-on with payout limits ranging from £5,000 to £100,000
- Exclusions apply, especially in cases involving unlawful activity or minor injuries
- It’s worth considering if you want added protection beyond your regular car insurance
While no one wants to think about serious accidents, personal accident cover offers a layer of financial security if the unexpected happens.
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