Nobody knows what’s around the corner but accidents do happen, sometimes with serious consequences for you or your loved ones. If you sustain significant injuries or die as a result of a vehicle accident, you might assume that your car insurance policy would pay compensation. However, that’s not always the case. Here’s what you should know about personal accident cover.
Personal accident cover pays out compensation, usually as a fixed lump sum, if your vehicle is involved in a serious accident that results in you or (in some cases) your passengers being seriously injured, disabled or killed. It’s also known as personal injury cover.
It’s often sold alongside car insurance. Some policies include it as standard while others include it as an optional extra.
If you’re involved in an accident and another driver is at fault, you will generally be able to claim against their car insurance.
However, in some cases, you may be at fault. Or, sometimes, no one may be held responsible for an accident. This is when personal accident cover can help. It offers you a way to seek financial compensation from your own insurer for medical costs incurred or lost income for you or your family if you die or are unable to work.
Having at least third party car insurance is mandatory. It covers the cost of harm to other people or property following an accident that’s your fault. However, there’s no such legal requirement to protect yourself against such risks by taking out personal accident cover.
But while you don’t legally need it, it’s worth considering the potential implications of not having it. For example, you might want to look for a car insurance policy that includes it, or pay extra for it, in the following situations:
| Response | Yorkshire and the Humber | West Midlands | Wales | South West | South East | Scotland | Northern Ireland | North West | North East | Greater London | East of England | East Midlands |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No | 43.53% | 28.7% | 31.82% | 34.78% | 34.44% | 23.68% | 33.33% | 34.71% | 23.81% | 38.89% | 34.48% | 37.5% |
| Yes | 32.94% | 46.96% | 46.97% | 47.83% | 39.07% | 50% | 41.67% | 43.8% | 54.76% | 36.11% | 50.57% | 44.32% |
| N/A I don't have a car | 23.53% | 24.35% | 21.21% | 17.39% | 26.49% | 26.32% | 25% | 21.49% | 21.43% | 25% | 14.94% | 18.18% |
Personal accident cover only protects against genuinely serious harm that has a significant impact on you or your family. You are unlikely to be covered for minor scrapes or breaks, for example.
Each insurer will have its own guidelines on precisely what is covered under personal accident cover. But in general, you’ll be insured against the following:
Some might also include injury that results in significant burn damage or scarring, plus loss of hearing, loss of fingers or toes, or loss of speech.
The payment you receive, usually as a lump sum, is likely to depend on the nature of the harm and the impact on you and your loved ones. Almost all policies have a cap on the maximum amount they will pay.
An insurer will set its own exclusions and restrictions for the personal accident cover it offers. As always, you need to read the small print carefully.
Given that it only pays out for serious injury or death, you won’t get cover for (relatively) minor injuries that don’t have a long-term impact. So sprains and broken arms probably won’t be covered. Psychological trauma may also be excluded. And you may struggle to find a personal accident policy that covers certain treatments, such as physiotherapy.
Some policies also have specified limits. For example, some may not cover people over the age of 80. Others may only cover the driver and their partner, rather than everyone in the car.
Other exclusions are fairly universal and are linked to your driving behaviour. You’re likely to see any personal accident claim declined in the following situations:
Finally, most policies need the accident to be the sole and direct cause of whatever injury followed. If factors other than the accident caused or were the most important factor in the death or injury – such as an underlying health condition or existing disability – this may not be covered. For example, if someone has a heart attack at the wheel, has an accident and later dies, it may be deemed that the heart attack, rather than the accident, was the major contributing factor.
In practice, such matters are rarely clear cut and could result in you receiving a partial payout. If you disagree with an insurer’s verdict, you can complain to the Financial Ombudsman Service (FOS).
While many comprehensive car insurance policies include some level of personal accident cover as standard, it’s not universal. And lower-level policies, such as third party or third party, fire and theft insurance, rarely or never include personal accident cover.
If an insurer doesn’t include personal accident cover as standard, it may include it as an optional extra that can be purchased to enhance your policy.
Don’t automatically assume that personal accident cover is included in your policy. It’s best to check. If it is included, check the details carefully to see exactly what protection it offers in case you’d like to increase the level of cover.
When you get an insurance quote, it should state whether personal accident cover is included as standard and the cost of adding it as an optional extra. On price comparison sites, this will often be clearly laid out with a tick, cross or cost to add it for each provider on the results page.
If it’s not included as standard, and you want it, simply tick the box to add it when you buy your cover.
If you decide you want to add it to your policy part way through your insurance term, this should also be possible. Just get in touch with your insurer.
Yes. In the event that your car insurer doesn’t offer personal accident cover at all, or if you’re just not happy with the price or level of cover it offers, you can take out a standalone personal accident policy.
While the overall types of harm covered are likely to be similar (so serious injury, disability or death), standalone policies have the potential to offer the following:
As always, exactly what is and isn’t covered will vary by insurer. And you’re likely to pay more for standalone, more comprehensive cover than you would by adding personal accident cover to your car insurance.
If it’s not already a standard part of a car insurance policy, you can typically expect to pay around £15-£30 to add it on.
Standalone cover is likely to be a little pricier as it often offers better coverage – probably a few pounds a month.
Ask yourself the following questions about what you need, and look for a policy that ticks as many boxes as possible.
The other thing to check for is the situations you’ll be covered in. You’ll always be covered if you’re behind the wheel when an accident happens (subject to the exclusions we’ve outlined above). Some policies also cover you if you’re getting out of your car when an accident happens or if you’re waiting for help by the roadside.
If you or one of your passengers have been hurt in a car accident, the top priority is obviously to get medical attention.
Keep hold of any medical documentation generated, as you (or, in the worst case, your loved ones) will need this to make a claim. You may also be asked to provide any other evidence of costs related to your injury (such as receipts).
Contact your insurer as soon as possible to report the accident and start the claims process. If the accident was another driver’s fault, the claim should be paid by their insurer. Otherwise, you will need to follow your own insurer’s claims process. There’s a good chance that if you were involved in an accident in your car that you will be claiming for damage to your car as well as under your personal accident policy.
There’s no fixed period for an insurance company to pay out, as personal accident cases can be complex.
If you’re not happy with your provider’s initial response, follow its complaints process. If this is unsuccessful, after 8 weeks, you can escalate your complaint to the Financial Ombudsman Service (FOS).
Personal accident cover can be a valuable element of car insurance. It can offer compensation for expenses incurred and loss of income if you’re seriously injured or die in an accident. Whether it’s included as standard in your cover or an optional extra, if it’s important to you, check the level and quality of cover carefully to make sure it delivers everything you need. If you’re not happy with your car insurer’s policy or it doesn’t offer personal accident cover, a standalone policy may have fewer restrictions.
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