Accident insurance vs. disability insurance: what’s the difference and which one should you choose?

As the saying goes, accidents will happen. In fact, 2.4 million U.S. employees had accidental injuries and illnesses in 2024.¹ The result? A lot of people missing work.

Perhaps the worst part: Having health insurance might not be enough to cover you if you get seriously injured or sick.

Having an accident or disability plan can be especially important for people who don’t work for large companies or those who are self-employed.  These plans can be part of benefits packages at bigger corporations. If that’s not you, you may want to think about buying your own.

Supplemental plans such as accident and disability insurance are not meant to replace your primary health insurance plan. They are meant to supplement it. (There is a monthly premium for supplemental insurance that is not included in what you’d pay for your primary health insurance.)

So what’s the difference between accident and disability insurance—and which one should you choose? Here are some answers.

A supplemental accident or disability insurance plan — or both — could be a way to help you pay for out-of-pocket expenses if you were injured and couldn’t work. Explore these plans by calling a licensed insurance agent at (844) 958-5256 to talk about available plans.

Accident insurance can help cover you for many types of injuries

Each policy is going to be a little different. Some focus more on minor injuries, which might just send you to the ER or urgent care. Others will focus on what happens if you wind up in a coma after a car wreck, and you’re in the hospital for 20 days. Some policies can even cover your children for a slightly higher cost.²

Accident insurance pays you a lump sum

After you’ve had a qualifying accident, the insurance company will send you or your provider a single, lump-sum benefit to help you [CE1] cover any out-of-pocket expenses you might have because of your injury. That money could help cover things like:

• Emergency treatments
• Hospital stays
• Medical exams
• Transportation services

Any leftover benefit could even be used to help pay for your living expenses while you’re recovering. These could include things like groceries, childcare or rent/mortgage payments.

Disability insurance can help you almost immediately after an accident or illness

Think of disability insurance as financial assistance in the event you can’t work after you’ve had a qualified accident, injury, or illness.

Say you have a motorcycle accident, get hurt, and can’t work for the next two months. “During that time, disability will help with lost wages by paying, generally, a percentage of your income,” says Yuletta Pringle. She’s an HR knowledge adviser for the Society of Human Resource Management based in Alexandria, Virginia.

Disability insurance then provides a portion of your lost income until you get back on your feet and can work again, adds Pringle. But you can’t get that money until your doctor fills out a form and sends it to your insurance company, proving that you can’t work due to your injuries or illness.

Also important to know: It may take 7 to 15 days before your plan’s benefits become effective, says Pringle. To make up for the shortfall, you’d need to use paid time off, she adds, or tap into your savings.

Disability insurance could provide the help you may need with out-of-pocket expenses if you can’t work after a qualified accident, injury or illness. Call a licensed insurance agent at (844) 958-5256 to review available plans.

Disability insurance pays you when you’re hurt

Your disability pay comes either weekly or monthly and helps cover the time you’re away from work. It’s not your full income, though. It’s a percentage based on your salary. And there’s a cap.

You can find disability insurance in two forms, short term and long term

Short-term disability policies replace a portion of your salary for a few months. About 22% of short-term disability claims are filed because of pregnancy and childbirth, while other reasons include mental health issues (such as depression), hernias, back ailments, or sprains.³

Long-term disability coverage, on the other hand, can start after 30 days but usually starts after 90 days, depending on the policy you choose.⁴ “Long-term [disability insurance] is expected to be something a bit more involved, more serious,” explains Pringle. “Think of someone having an injury that results in some ongoing impairment.” 

Some reasons that people file long-term claims can include heart attacks, stroke, cancer and disorders that affect the spine, back or knees. Depending on your policy, long-term disability benefits could last for years.

So which insurance plan—accident or disability—should you choose?

“I’d say all employees could possibly benefit [from either type of plan],” says Pringle. “No one wants to expect that there would be a period they’d be under medical care and unable to work. But should that happen, knowing that there’s a safety net can help.”

Here are additional tips to keep in mind when comparing accident and disability plans:

• How much you have in savings. How long are you going to be able to go if your income were to stop tomorrow due to an injury or illness?’ “Eighteen percent of adults said the largest emergency expense they could handle right now using only savings was under $100,” according to a survey done by the Board of Governors of the Federal Reserve System.⁵
• How high is your health insurance deductible? A lot of health insurance plans have high deductibles — what you pay before the insurance company starts to pay for covered services. So if you don’t have your full deductible amount available, it might be good to have a plan that provides help with out-of-pocket expenses.
• Should you rely on Social Security or workers’ compensation? These two government programs can help make up for lost income, but they may not be enough. Workers’ compensation applies only to injuries or illnesses you sustain on the job. And the average Social Security disability payment was about $1,635 a month for disabled workers in April 2026.⁶

Consider an accident or a disability insurance plan (or both). If you had a qualified accident and had to miss work, would you be able to cover your expenses? Call a licensed insurance agent at (844) 958-5256 to compare plans.

For informational purposes only. This information is compiled by HealthMarkets Insurance Agency and does not diagnose problems or recommend specific treatment. Services and medical technologies referenced herein may not be covered under your plan. Please consult directly with your primary care physician if you need medical advice.