You May Have an Accidental Death Benefit in Your Auto Insurance Policy

Posted in Auto Insurance , Auto Insurance Claims , Auto Insurance Riders

April 7th, 2009

Accidental death benefits are a type of additional coverage that can be added to your auto insurance policy. The rider (a contract authorizingadditional coverage for something specifically not covered within an auto insurance policy) will pay out an amount of money to cover the funeral expenses of a person killed in a car accident. Typically, the maximum payout benefit for an accidental death benefit is $5000. To add that level of protection on your policy would cost approximately $100-$125 annually. This type of accidental death benefit is different from the accidental death or dismemberment insurance that may be offered along with your life insurance or health insurance plans.

Accidental Death Benefit Beneficiaries

Accidental death benefits tend to provide a separate level of coverage for you, your spouse or others named in the rider, if any of you perish in an automobile accident. The limits on a accidental death benefit is different from the other types of maximums your insurance company may pay on your claim. To ensure that you and your loved ones are properly covered by an accidental death benefit rider, everyone needs to be independently listed on the declarations sheet, regardless of who was at fault for the accident. Ultimately, death benefits will be paid to the surviving spouse, parents of a minor child, or the estate of the insured individual. Although it may be disheartening to consider an accidental death benefit in an auto insurance policy, it is an important rider to have so that your family will not be burdened by funeral expenses if you pass.