Personal accident protection with car insurance is not a good protection

Luke451

Hi,

let's assume that I have a personal accident cover (under the car insurance) + an income protection.

I'm not sure if the personal accident insurance is different if subscribed with the car insurance or separately, so I'm writing this post by not knowing if there is a difference.

My car insurance would cover me only 2500 pounds for damages to me, which is crazy...

I think that as a comprehensive insurance it covers several millions for damages caused to other people or things, but to me it would cover only 2500, how the hell is that possible??

It's even an extra!!! I can't imagine how many people are with the *** uncovered, I think only the 6% has an income insurance but between these, I bet that no one noticed the following scenario.

Imagine to have an accident when you're unemployed, you need 20k+ to fix what you need to fix, and maybe you get a permanent disability, you would have no cover without an income protection...

For many years I've been without a proper insurance, absolutely crazy.

Am I wrong?

2nd scenario, not exactly inherently to the car insurance problem, imagine that my income protection would argue that the accident happened with a car, and by that, they have some weird rule that says "driving a car doesn't get cover because you're expected to get covered by the car insurance" (regardless who's at fault AND if the other had an insurance or not), maybe it's even a law who knows...

Does anyone know how it works in this case?

Anyway, now I have an income protection, but I can count on it only if I'm employed, so, when I'm unemployed I shouldn't touch my car to be safe???

DullGreyGuy

The clue is arguably in the name... it's CAR insurance. It is there to predominately cover your liability to others, that is the legal minimum requirement. You can choose to enhance that cover with cover for fire, theft and own vehicle damage. 

Personally, think its more questionable why there is any PA cover embedded in Car insurance at all... in fact when I did my first car insurance training over 20 years ago I asked how we processed PA claims and the trainer, who'd been a claims handler for the company for over 15 years said she didnt know as never had one. A token amount of PA was built into the Comp policy as standard back then. 

There are many types of insurance out there so it really depends what you want covered... Personal Accident pays a lump sum on a major injury like loss of limb or eye... Accident & Sickness pays a monthly sum if you are too ill or injured to work but only for a limited period... Permanent Health Insurance pays a monthly sum if you are too ill or injured to work for a long period (eg until 65th birthday)... Critical Illness pays a lump sum in the event you get one of a number of major illnesses or sustain catastrophic injuries... Private Medical Insurance will pay for private medical care to help your recover from injury or illness quicker (hopefully). 

What is best for an individual depends on their needs, their plans and potentially what coverages they get from employment etc. 


Insurances may have exclusions for certain activities but none are going to exclude general day to day driving so your scenario 2 won't crystallise... if you were track racing or doing something more high risk than going to Burger King then that may well be excluded on certain policies.

Your PA policy is a lump sum and will not invalidate a claim on Income Protection, they are different coverages for different purposes. Were you to receive a Periodic Payment Order for loss of earnings after being in a non-fault accident then that may impact an IP claim as both are replacing income and that starts smelling like undue enrichment but PPOs really started after I left claims and are fairly rare (they replace income for non-fault drivers who'll never work again due to their injuries but probably have a reasonably normal lifespan rather than being given a multimillion pound lump sum up front based on an estimated life expectancy)

BarelySentientAI

Hello again Luke!

Still confusing us with posts about insuring income that you don't have?

What is your question here?  It seems like you're asking who pays for your medical care (or maybe entire income) if you have a crash in your car?

I think that most people already understand that your car insurance isn't supposed to pay you for permanent disability.  It's not medical insurance.

And where have you invented this strange "law" that says other insurance doesn't pay out if you happened to be in a car at the time?

user1977

Luke451 said:

2nd scenario, not exactly inherently to the car insurance problem, imagine that my income protection would argue that the accident happened with a car, and by that, they have some weird rule that says "driving a car doesn't get cover because you're expected to get covered by the car insurance" (regardless who's at fault AND if the other had an insurance or not), maybe it's even a law who knows...

Does anyone know how it works in this case?

It doesn't work, because that weird rule only exists in your imagination.

XRS200

If you want personal accident insurance then buy personal accident insurance. 

If the PA add-on to car insurance doesn't suit your needs then don't buy it.

Luke451

BarelySentientAI said:

Hello again Luke!

Still confusing us with posts about insuring income that you don't have?

What is your question here?  It seems like you're asking who pays for your medical care (or maybe entire income) if you have a crash in your car?

I think that most people already understand that your car insurance isn't supposed to pay you for permanent disability.  It's not medical insurance.

And where have you invented this strange "law" that says other insurance doesn't pay out if you happened to be in a car at the time?

I bet that not many people know that in case the other person doesn't have insurance, yours won't pay unless you have that Personal Accident Protection, so it's like a necessary benefit.

On top of that, you need to have an income protection because for permanent damage that affects your job, it will never be enough using the car Accident Protection, and you also need to be employed at that time!

These are all valid considerations, so then I started to make up questions and scenarios.

Anyway, I extended the one with the car up to 100k (I forgot you can do it later), it's not much but better than nothing, I certainly won't touch the car if I'm unemployed.

Luke451

user1977 said:

Luke451 said:

2nd scenario, not exactly inherently to the car insurance problem, imagine that my income protection would argue that the accident happened with a car, and by that, they have some weird rule that says "driving a car doesn't get cover because you're expected to get covered by the car insurance" (regardless who's at fault AND if the other had an insurance or not), maybe it's even a law who knows...

Does anyone know how it works in this case?

It doesn't work, because that weird rule only exists in your imagination.

So you know the law? Like a lawyer or an AI system fully trained for that?
Removing the benefit of doubt will give you troubles in life dude.

BarelySentientAI

Luke451 said:

BarelySentientAI said:

Hello again Luke!

Still confusing us with posts about insuring income that you don't have?

What is your question here?  It seems like you're asking who pays for your medical care (or maybe entire income) if you have a crash in your car?

I think that most people already understand that your car insurance isn't supposed to pay you for permanent disability.  It's not medical insurance.

And where have you invented this strange "law" that says other insurance doesn't pay out if you happened to be in a car at the time?

I bet that not many people know that in case the other person doesn't have insurance, yours won't pay unless you have that Personal Accident Protection, so it's like a necessary benefit.

On top of that, you need to have an income protection because for permanent damage that affects your job, it will never be enough using the car Accident Protection, and you also need to be employed at that time!

These are all valid considerations, so then I started to make up questions and scenarios.

Anyway, I extended the one with the car up to 100k (I forgot you can do it later), it's not much but better than nothing, I certainly won't touch the car if I'm unemployed.

I think most people know that if the other driver isn't insured that their car insurance will pay for the repairs to their car.

You're confusing two, or maybe three, different types of insurance and inventing unrealistic situations with fake limitations to make yourself worry about it.

Car insurance pays for damage to your car.

Income protection pays if you lose your income.

Critical illness insurance pays if you get a critical illness/injury.

Private medical insurance pays for medical care.

And yes, they will pay out if you have a crash during normal driving activities, whether or not the other person is insured.

user1977

Luke451 said:

user1977 said:

Luke451 said:

2nd scenario, not exactly inherently to the car insurance problem, imagine that my income protection would argue that the accident happened with a car, and by that, they have some weird rule that says "driving a car doesn't get cover because you're expected to get covered by the car insurance" (regardless who's at fault AND if the other had an insurance or not), maybe it's even a law who knows...

Does anyone know how it works in this case?

It doesn't work, because that weird rule only exists in your imagination.

So you know the law? Like a lawyer or an AI system fully trained for that?

I am very much like a lawyer who knows the law, yes.

Luke451

user1977 said:

Luke451 said:

user1977 said:

Luke451 said:

2nd scenario, not exactly inherently to the car insurance problem, imagine that my income protection would argue that the accident happened with a car, and by that, they have some weird rule that says "driving a car doesn't get cover because you're expected to get covered by the car insurance" (regardless who's at fault AND if the other had an insurance or not), maybe it's even a law who knows...

Does anyone know how it works in this case?

It doesn't work, because that weird rule only exists in your imagination.

So you know the law? Like a lawyer or an AI system fully trained for that?

I am very much like a lawyer who knows the law, yes.

Great, I'm not, so I ask questions.

BarelySentientAI said:

Luke451 said:

BarelySentientAI said:

Hello again Luke!

Still confusing us with posts about insuring income that you don't have?

What is your question here?  It seems like you're asking who pays for your medical care (or maybe entire income) if you have a crash in your car?

I think that most people already understand that your car insurance isn't supposed to pay you for permanent disability.  It's not medical insurance.

And where have you invented this strange "law" that says other insurance doesn't pay out if you happened to be in a car at the time?

I bet that not many people know that in case the other person doesn't have insurance, yours won't pay unless you have that Personal Accident Protection, so it's like a necessary benefit.

On top of that, you need to have an income protection because for permanent damage that affects your job, it will never be enough using the car Accident Protection, and you also need to be employed at that time!

These are all valid considerations, so then I started to make up questions and scenarios.

Anyway, I extended the one with the car up to 100k (I forgot you can do it later), it's not much but better than nothing, I certainly won't touch the car if I'm unemployed.

I think most people know that if the other driver isn't insured that their car insurance will pay for the repairs to their car.

You're confusing two, or maybe three, different types of insurance and inventing unrealistic situations with fake limitations to make yourself worry about it.

Car insurance pays for damage to your car.

Income protection pays if you lose your income.

Critical illness insurance pays if you get a critical illness/injury.

Private medical insurance pays for medical care.

And yes, they will pay out if you have a crash during normal driving activities, whether or not the other person is insured.

So the car insurance covers third party but not damages to people??

For example, you're walking and someone crashes on you, let's say 1y rehabilitation and some permanent injury or little disability, wouldn't pay anything to the person?

user1977

Luke451 said:

BarelySentientAI said:

Luke451 said:

BarelySentientAI said:

Hello again Luke!

Still confusing us with posts about insuring income that you don't have?

What is your question here?  It seems like you're asking who pays for your medical care (or maybe entire income) if you have a crash in your car?

I think that most people already understand that your car insurance isn't supposed to pay you for permanent disability.  It's not medical insurance.

And where have you invented this strange "law" that says other insurance doesn't pay out if you happened to be in a car at the time?

I bet that not many people know that in case the other person doesn't have insurance, yours won't pay unless you have that Personal Accident Protection, so it's like a necessary benefit.

On top of that, you need to have an income protection because for permanent damage that affects your job, it will never be enough using the car Accident Protection, and you also need to be employed at that time!

These are all valid considerations, so then I started to make up questions and scenarios.

Anyway, I extended the one with the car up to 100k (I forgot you can do it later), it's not much but better than nothing, I certainly won't touch the car if I'm unemployed.

I think most people know that if the other driver isn't insured that their car insurance will pay for the repairs to their car.

You're confusing two, or maybe three, different types of insurance and inventing unrealistic situations with fake limitations to make yourself worry about it.

Car insurance pays for damage to your car.

Income protection pays if you lose your income.

Critical illness insurance pays if you get a critical illness/injury.

Private medical insurance pays for medical care.

And yes, they will pay out if you have a crash during normal driving activities, whether or not the other person is insured.

So the car insurance covers third party but not damages to people??

For example, you're walking and someone crashes on you, let's say 1y rehabilitation and some permanent injury or little disability, wouldn't pay anything to the person?

The pedestrian would make a third party claim, covered by the driver's car insurance.