Having a car, house, or other assets can bring great joy and financial security. However, these items can also serve as targets for thieves and vandals if you don’t have personal accident insurance to cover the costs associated with their destruction. This type of insurance is essential for those who own anything that could be targeted for theft or damage by an uninvited trespasser. Let’s explore the benefits of having personal accident insurance, as well as specific types of coverage that are right for your needs.
What is Personal Accident Insurance?
This type of insurance is designed to cover your losses if you are the victim of an accident with your property. When your car is stolen and used in a hit-and-run accident, or when someone breaks into your home and damages it, you could wind up with a bill for thousands of dollars in repairs and lost income. This can be especially damaging if you are tired of your job and simply want to take a break from the daily grind. To understand how this type of insurance works, it’s helpful to understand some basics about car insurance. When you purchase car insurance, you are covered for the damage that your vehicle sustains as a result of an accident with another car, a person, a tree, a building, or whatever else happens to be in the path of your car that day. If a driver in another car crashes into your car, your insurance company will usually cover the cost of repairs. On the other hand, if your car is damaged because someone is driving negligently or recklessly and they cause a collision, your insurance likely won’t cover the costs of repairs.
Types of Personal Accident Insurance
There are several different types of accident insurance available, allowing you to choose the one that best suits your needs and budget. The two main types of coverage are comprehensive and collision.
- Comprehensive coverage pays for damage that is not related to a collision. This could include damage to your car from mechanical failures or weather, as well as damage from flooding or fires.
- Collision coverage pays for damage caused to your vehicle by a collision (such as damage from a smashed window, a dented fender, or a broken headlight). This type of coverage is important if you own a car.
- Combined coverage is a mix of both collision and comprehensive. Generally, lower-cost insurance policies offer combined coverage, while more expensive policies typically provide only collision coverage.
- Towing and rental car coverage are critical, but often under-rated components of a comprehensive auto insurance policy.
Why Have Personal Accident Insurance?
There are several good reasons to have personal accident insurance. If your car is stolen and used in a hit-and-run accident, you could be left with a significant bill for repairs and lost income. If someone breaks into your home and damages it, you could be left with expensive repairs and lost rental income. Preventative measures, like keeping valuables out of sight and away from sightlines and keeping your home free of hazards, can help you avoid many types of damage and reduce your chances of being a victim of a personal accident. However, no amount of planning can prevent everything, which means that it’s important to have coverage in case the unexpected does happen.
Who Should Have Personal Accident Insurance?
There are a few people who may find it particularly worthwhile to have this type of coverage.
- People who own expensive items, like expensive cars or expensive homes, may benefit from a comprehensive policy since these items are often targets for theft or damage.
- People who have significant financial investments, like stocks or other investments, may benefit from a comprehensive policy that covers property damage.
Finding the Right Coverage for You
The best way to decide if personal accident insurance is right for you is to talk to a few different insurance companies and compare the different options. Look for the one that offers the lowest cost per month, along with the most comprehensive coverage for your needs. Also, keep in mind your existing needs. If you own a car and don’t need comprehensive coverage, you may save money by switching to a collision-only policy. If you don’t want comprehensive coverage and want to save money, you can choose a combined policy. Keep in mind that the more comprehensive coverage you have, the higher your monthly premium will be, so be sure that’s the coverage you want before signing up. Also, be sure to check the fine print to make sure you’re receiving the coverage you need.
This type of insurance is essential for those who own anything that could be targeted for theft or damage by an uninvited trespasser. The best way to avoid a personal accident is to practice safe driving habits and prevent car accidents from occurring. This includes wearing your seatbelt while driving, not driving while intoxicated and avoiding driving in areas where there is a high risk of being involved in an accident. If an accident does occur, use good judgment and take appropriate precautions to prevent further damage to your vehicle and injury to yourself or others. Personal accident insurance is a critical form of coverage, especially for those who own expensive assets that could be targeted for theft or damage.