Legal Definitions - accident policy

An accident policy is a type of insurance that protects you if you get hurt by accident during the time the policy is active. It's like a contract between you and the insurance company that says they will help pay for any injuries you get from an accident. There are many different types of insurance policies, like ones that cover your home or car, and they all have different rules and coverage. Insurance companies use something called insurance rating to figure out how much you should pay for your policy. Sometimes, a group of insurance companies will join together to form an insurance pool to share the risk and costs.