ACCIDENT-ONLY INSURANCE
Back to GlossaryDefinition
Coverage that pays benefits only for injuries from accidents; typically an excepted benefit.
Summary
Accident-Only Insurance is a limited type of health coverage that exclusively covers medical expenses and benefits resulting from accidental injuries, such as broken bones from falls, car accidents, or sports injuries. Unlike comprehensive health insurance, it does not cover illnesses, preventive care, or routine medical services. This type of insurance is considered an 'excepted benefit' under healthcare regulations, meaning it doesn't meet the minimum essential coverage requirements and is often sold as supplemental protection alongside primary health insurance.
Usage Context
Understanding this term is important when studying insurance product classifications, healthcare policy compliance, benefit design, and helping clients choose appropriate coverage combinations.
Common Confusions
- Thinking accident-only insurance provides comprehensive health coverage
- Confusing it with disability insurance (which covers income loss)
- Believing it satisfies ACA individual mandate requirements
- Assuming it covers illnesses or diseases
- Mixing up accident-only with critical illness insurance
- Not understanding that it's supplemental, not primary coverage
