60-second summary
Get the basics on personal accident cover:
Personal accident cover can give you financial protection if you’re seriously injured in an accident
It can provide compensation for serious injuries, permanent disability or death
It’s unlikely to cover accidents involving drugs, alcohol or breaking the law
The cover is often included in comprehensive car insurance, but if not, you may be able to add it on for an extra cost. Always check your policy carefully to see what’s covered.
What is personal accident cover on car insurance?
Personal accident car insurance – also known as personal injury car insurance – could offer financial protection for you or your loved ones, if you’re seriously injured or killed in a car accident.
It could pay out if you, the driver, suffer a life-changing injury or become permanently disabled as a result of a car accident. It could also provide financial compensation to your partner and family if a car accident causes your death.
What does personal injury car insurance cover?
Policies vary, but personal accident car insurance typically only covers certain life-altering injuries or loss of life. Policies will typically pay out an agreed maximum amount depending on the type and severity of the injury sustained.
Personal injury payouts are designed to help you deal with the financial fallout after a serious injury or the death of a loved one. It could cover the expenses incurred because of an accident – like specialist medical treatment and physical therapy.
Crucially, it could also help cover any lost future earnings if you or your partner are no longer able to work as a direct result of the injury you’ve sustained.
What injuries are covered?
Personal injury car insurance typically pays out for:
Permanent loss of vision in one or both eyes
Losing your limbs – if they need to be amputated
Losing the use of your limbs – if you suffer paralysis
Total disablement
Death.
More comprehensive personal accident car insurance policies might also include:
Losing your fingers or toes
Losing your hearing, in one or both ears
Losing your speech
Severe burns and scarring.
What isn’t covered by personal injury car insurance?
Personal injury cover won’t typically compensate you for less serious injuries, such as minor sprains, for example, or even broken bones. It also won’t usually cover you for any psychological trauma you suffer because of an accident.
You can find insurance providers that cover a wider range of injuries, but this is typically described as ‘enhanced’ or ‘increased’ cover.
Your personal accident cover could be invalidated under certain circumstances, for example, if:
You have an accident while driving while under the influence of drugs or alcohol
You’re driving without a valid licence
You drive without wearing your seatbelt
You’re taking part in rallies, races or speed tests
The accident or injury has been self-inflicted or is death by suicide.
In these instances, the insurance provider doesn’t have to pay out any compensation – and probably won’t.
As with all insurance policies, it’s worth checking the small print to make sure what’s covered. For example, personal accident cover may not pay out for injuries to passengers. Or they may only cover passengers if they’re a named driver on the policy.
Do I need personal injury cover on my car insurance?
Personal injury cover is entirely optional, but it could help provide reassurance that you have financial back-up to help take care of your family should the worst happen – or an injury prevents you from working.
In the UK, we’re lucky to have the free-at-the-point of use healthcare provided by the NHS, as well as an Employment and Support Allowance (ESA) to help those with illness and disabilities who are unable to work.
However, a personal injury lump sum could help with other expenses, such as sophisticated prosthetics if you lose a limb or adaptations to your home if you become a wheelchair user, for example.
Top tip:
If you’re concerned about broader risks to you or your family’s health, wellbeing and finances as a result of sickness or disease, you may want to look into other kinds of personal protection policies, like critical illness cover or accident, sickness and unemployment insurance.
Do I get personal accident cover with my car insurance?
It depends on the policy, but if you have comprehensive car insurance, it may already come with personal accident cover.
You can check if personal accident cover is included by reading your car insurance policy documents or contacting your insurance provider. If it isn’t already included, you might be able to add it on to your policy, but it could bump up your premiums.
Alternatively, you could look for a policy that includes this cover as standard. But levels of cover can vary significantly. So, when you’re comparing policies, make sure you understand exactly what’s covered and how much you could expect from a payout.
Should I consider taking out a separate personal accident insurance policy?
For more wide-ranging cover, it might be worth taking out a standalone personal accident insurance policy. This may be more comprehensive than an add-on to a car insurance policy because it could cover accidents and injuries caused in other contexts, for example while you’re working or playing sports.
As always, it’s a good idea to compare the cover options and cost of different options to find the one that works best for you.
What should I look for when taking out personal accident car insurance?
When comparing your options, ask yourself these questions:
Who will the policy cover? Many people don’t realise that personal accident insurance could cover an individual, a couple or even the whole family.
Where will I be covered? Will the policy only cover accidents that happen in the UK? Or will the insurance provider compensate for accidents that happen abroad as well?
What injuries will be covered? Will you get compensation if you lose your hearing? Or if you lose a finger or toe? Grisly as it is, make sure you read the fine print.
What situations am I covered for? Are you covered for accidents that happen while you’re travelling in a different car, for example? Or while getting in and out of your car?
How much am I covered for? Personal injury policies usually pay out a fixed lump sum for specific injuries. But the lump sum amount offered can vary a lot between providers, so it’s worth comparing your options.
Top tip:
It may seem a little morbid, but when working out how much cover you need, it can help go through the consequences of an accident systematically to come up with a number.
Start with the direct implications and immediate financial consequences of each serious injury you want covered before moving on to the longer-term effects.
Don’t forget that you may have other policies that could impact your circumstances or those of your family, such as life insurance provided by your employer.
How much does personal accident cover cost?
It depends on the level of cover you choose and other factors – such as your age, where you live, the vehicle you drive and your claims history.
If you have comprehensive car insurance, personal injury cover may come included as standard. In that case it won’t cost you anything extra.
How do I make a personal accident car insurance claim?
First, you should call the emergency services and get immediate medical treatment for anyone who is injured.
Once everyone is safe and being taken care of, you or your representative should notify your insurance provider about the accident as soon as possible. They’ll advise you what to do next, based on their claims process.
Remember that you’ll have to prove any claim you make. So, it’s important to keep copies of any evidence you might need to support your claim – for example, documentation from the hospital. You should also keep any receipts for any expenses related to the accident – such as prescription fees or transport costs.
Your insurance provider will check to make sure that the claim is valid under the terms and conditions of the policy. For example, they’ll want to make sure you weren’t driving under the influence of drink or drugs and that you were wearing a seatbelt. If you’ve broken these terms, then your insurance provider won’t pay your claim.
If your claim is rejected and you think it’s unfair, you can make an official complaint to your insurance provider. If you’re not happy with their response or they fail to get back to you within eight weeks, you could take your case to the Financial Ombudsman.
If you want to make a claim for compensation against whoever caused the accident, this is a separate matter and you’ll need to take specialist legal advice. If you have legal expenses cover, talk to your provider and explain your situation.
For more information, read our guides to:
What to do if your claim is rejected.
Top tip:
It’s worth putting together a document for your own use listing every call, letter or email exchanged between you and your insurance provider. Include notes on the details of that communication, so you can quickly see where you’re up to and what’s happened so far.
How much will I receive if I have to make a claim?
Your personal accident policy will set out exactly how much you should get in a particular set of circumstances or for a particular type of injury.
Maximum cover limits will vary policy by policy and the payouts on offer could range from £5,000 all the way up to £150,000. That’s why it’s so important to consider the level of cover when choosing your policy.
What is the personal injury discount rate and how does it affect personal injury claims?
The personal injury discount rate – also known as the Ogden rate – is used to calculate how much a personal injury claimant should receive in compensation.
Compensation paid out in personal injury claims settled in court is intended to make sure that the claimant is put in the same financial position they would’ve been in if they hadn’t had a life-changing injury.
It’s calculated to cover any costs involved in recovery, including loss of future earnings, treatment and future care costs. When a lump sum is agreed, the discount rate is applied to account for how the costs of goods and services are expected to change over time, as well as how much a claimant can expect to receive in interest if they invest that lump sum responsibly.
The discount rate is set by the UK government and is applied consistently across personal injury claim calculations.
As of 11 January 2025, the discount rate is set at +0.5% in England and Wales. Scotland and Northern Ireland set their rate independently, although it’s currently the same across the UK.
FAQs
Will I get personal accident compensation if a car accident was my fault?
If you were at fault for the accident and you have personal accident cover with your car insurance policy, you should be able to claim, as long as:
Your injury or loss qualifies under the terms of your insurance policy
You didn’t break any of the conditions of your cover by, for example, not wearing your seatbelt.
If the car accident wasn’t your fault, then the driver at fault’s car insurance policy should pay out for any personal injury claims.
Can I claim for injuries sustained in a car accident without personal injury car insurance?
Even if you don’t have personal accident cover, you still have the right to claim compensation for personal injury through legal action – if the accident wasn’t your fault. You’ll need to get legal advice as soon as possible after the accident as there are strict time limits in place for claims.
Pursuing a personal injury claim through the courts can be expensive. Legal expenses insurance could help you here if you have it as part of your car insurance.
What’s the difference between personal injury and personal accident car insurance?
You may see the terms personal injury and personal accident used interchangeably. In car insurance, this type of cover typically pays out if you suffer a serious injury or death as a result of a car accident.
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With more than eight years’ experience in writing and sub-editing content, Karen started her career in fashion before making the move to insurance. She now specialises in producing clear, engaging content that helps people make better financial decisions.
Karen’s areas of expertise include insurance products, such as car insurance, travel insurance and life insurance, as well as utilities such as energy comparison.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Amy helps make sure you get the best value when choosing insurance. Thanks to more than four years’ experience at Compare the Market, she understands what people look for, working closely with insurance providers to offer you deals and services that are fair, easy to understand and right for your needs.
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