Death Indemnity Coverage

Death indemnity coverage provides a limited life insurance policy (usually between $5,000 and $10,000) to a specifically named beneficiary in the unfortunate event that the insured driver is accidentally killed as a direct result of an automobile accident. This policy pays the face value of the amount of coverage purchased.

If the insured is found to be negligent, resulting in the fatal accident, the coverage will usually still be intact (for example, bald tires during a snow storm). However, intentional criminal acts are not covered. For example, if the insured were to be killed as a result of a car-jacking in which the auto remained fully intact and undamaged. In such a case, the death would not be a result of an auto accident, but rather caused by a third party.

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Is Death Indemnity Coverage Right for You?

Before you decide to add this optional coverage onto your auto insurance policy, you may want to check your current health and/or general life insurance policies, as you may already be carrying some sort of “Accidental Death Coverage” that will be in force under a broader umbrella of incidents, like the car-jacking incident described above. In the event that your auto insurance carrier does not offer Death Indemnity Coverage and you feel that it is coverage you must have, you will probably be able to add it onto your current health and/or life insurance policy.

If you do not have any type of life and/or health insurance whatsoever, Death Indemnity Coverage is a viable option to add onto your current car insurance policy to cover any expenses that would typically be covered by a life insurance plan (i.e. funeral expenses, left over credit card balances, etc). This way, any final expenses are not left in the lap of your loved ones.

Death Indemnity as an add-on to your auto insurance policy is fairly inexpensive, although not many companies offer this protection. Please review our car insurance company profiles to see which companies offer Death Indemnity optional coverage.

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Last Updated: November 10, 2009