1. Know your exclusions

Exclusions are scenarios in which an accident occurs, but the personal accident insurance company doesn’t have to pay. Be sure to read these over first before you sign. If you think that one or more of the exclusions are unreasonable, work with your insurance agent and get a waiver that will change the rules. Common exclusions include war, suicide, insanity, hazardous sports and motorcycle accidents.

  1. Consider covering your entire family

If you’re the breadwinner in your family, it makes sense to buy personal accident insurance for yourself. But if one of your family members gets into an accident, medical costs can leave you bankrupt. Consider extending your coverage to the rest of your family if you can afford it.

  1. Know the amount you are entitled to receive if an accident occurs

There are many different kinds of personal accident insurance plans. Budget plans are affordable, but the payout may not be what you are looking for. Be sure that you are okay with the scale of the benefits before you sign.

  1. Choose a beneficiary

A beneficiary is the person who receives the benefits if you can’t. Be sure that the beneficiary you choose knows that you nominated him or her and knows what to do if you get into an accident and need help.

  1. Multiple coverage

The rules of insurance dictate that you can’t receive multiple payouts for a single accident. If you already have health insurance, you need to check to make sure that your coverage doesn’t overlap before you buy.

  1. Know what to do if you need to make an injury claim

If you get into an accident and need to make a claim, contact your insurance company in writing immediately. Then submit your claim along with all other documents that prove that an accident really happened: receipts, medical reports, etc.

  1. Be sure your beneficiary knows how to make a death claim

Your beneficiary should know what to do in the event that he or she needs to make a claim. First, your beneficiary must file a police report. Then they should notify the insurance company immediately. Finally, your beneficiary must submit the death certificate and burial claim.

  1. Keep your insurance company up to date

If you fail to give your insurance company updated information about your life and where you live, they may attempt to deny you if you try to make a claim. Always keep your address up to date. If you change your occupation or take up any dangerous hobbies, be sure to let your insurance company know so that they can adjust your risk profile.

  1. Understand Total and Permanent Disability (TPD)

TPD kicks in if you experience an injury that leaves you unable to work. What “unable to work” varies depending on the insurance company, so be sure to get your facts straight on this point before you agree to start paying premiums.