Accident insurance is insurance that compensates individuals or their beneficiaries for expenses incurred as the result of accidents. Accident insurance benefits vary according to the agreement between the insurance company and the policy holder.
Accident insurance may cover accident-related costs as the individual requires. These expenses may range from ambulance costs to child care. Individuals can purchase accident insurance through an employer or privately. It complements health insurance but does not replace it.
Accident insurance does not cover pre-existing conditions or hospital expenses for reasons other than accidents, states Met Life. Accident insurance covers injuries from burns and cuts to accidental death. Other insurance provisions vary by state and insurance company.