If you travel frequently for business or pleasure, you might consider purchasing common carrier travel and accident insurance. This form of insurance pays benefits to you or your designated beneficiary if you are killed or injured in an accident involving some modes of public transportation.
Common carrier travel and accident insurance is designed to cover accidents that occur when traveling using certain modes of transportation. According to TripInsurance.com, covered modes include airplanes, trains, ships, taxis or buses.
Common carrier accident coverage will pay up to the limits specified in the policy for loss of life or certain injuries, while paying a lesser amount of other types. For example, if you are killed in a plane crash and you carried a $150,000 policy, your beneficiary would likely receive the full amount. However, if you were to lose hearing or speech, you might only receive half the benefit amount, or $75,000.
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Common carrier travel and accident insurance is not the same as regular travel accident insurance. The former only covers accidents while using a common carrier, while the latter covers all other forms of transportation.
Before purchasing common carrier insurance, check to see if you have coverage from other sources. For example, if you paid for the transportation with a credit card, your card issuer may automatically provide the coverage for free or allow you to purchase it for a nominal fee.