What are accident-only policies?
Accident-only policies are insurance policies that cover just the cost of medical expenses and lost wages related to an accident. These policies are typically much less expensive than traditional health insurance plans, which cover the cost of accidents, illnesses, and other medical issues.
Accident-only policies provide an alternative for those who cannot afford more comprehensive health insurance coverage, or who are younger and generally healthier and do not need the additional coverage that comes with a more expensive plan.
What Does an Accident-Only Policy Cover?
Accident-only policies provide coverage for medical expenses, such as hospitalization, surgery, doctor visits, medications, physical therapy, and other treatments related to an accident. This coverage usually extends to include lost wages if the insured person is unable to work due to an accident.
These policies do not, however, cover the costs of preventative care, such as regular doctor visits, physical exams, immunizations, or routine screenings. Nor do they cover the cost of illnesses, such as the flu or other common medical issues.
What Are the Advantages of an Accident-Only Policy?
The main advantages of accident-only policies are their low cost and the fact that they provide coverage for a large variety of accidents. Since accident-only policies only cover the costs of accidents, they are usually much less expensive than traditional health insurance plans.
Another advantage is that accident-only policies are often available with more flexible terms, such as deductibles and co-pays, than traditional health insurance plans. This makes them a good option for those who do not need comprehensive coverage and want to pay less for their health insurance.
What Are the Disadvantages of an Accident-Only Policy?
The biggest disadvantage of accident-only policies is that they do not cover the costs of preventative care or illnesses. This means that if you get sick or need to go to the doctor for a routine visit, you will have to pay out-of-pocket.
Another potential downside is that accident-only policies often have more restrictive terms than traditional health insurance plans, including higher deductibles and co-pays. This can make them less attractive for those who will need to use them more often.