In order to offer financial security against unforeseen risks like injury, disability, and death, accident insurance is essential. However, due to disparities in financial literacy and income levels, its acceptance varies greatly across individuals. The purpose of this study is to investigate how financial literacy and income level affect accident insurance purchases in the Pune area. A structured questionnaire was used to gather primary data from 100 respondents for the study. Data interpretation was done using statistical tools such the chi-square test, correlation, and percentage analysis. The results show that because accident insurance is more affordable, people with higher income levels are more likely to get it. Furthermore, awareness, comprehension, and decision-making about insurance products are strongly influenced by financial literacy. The study comes to the conclusion that increasing financial literacy and creating reasonably priced insurance plans can boost insurance penetration and encourage people\\\'s financial security.