Question

In automobile insurance, Supplementary Payments refer to which of the following?

Option 1: Coverage for damage to your own vehicle
Option 2: Additional payments made by the insured for policy enhancements
Option 3: Extra coverage for expenses associated with a covered claim, such as legal fees
Option 4: Premium payments made by the insured to the insurance company

Answer 1

Supplementary Payments in automobile insurance are extra coverages for expenses, such as legal fees, associated with a covered claim, and are not for damage to one's own vehicle, policy enhancements, or premium payments.

Step-by-step explanation:

In automobile insurance, Supplementary Payments refer to Option 3: Extra coverage for expenses associated with a covered claim, such as legal fees. This type of coverage is essential for individuals who find themselves needing to pay for additional costs that arise due to a claim, such as attorney fees, court costs, and other related expenses. These payments are a benefit provided by the insurance company over and above the policy limits for liability coverage. Supplementary Payments do not refer to coverage for damage to your own vehicle (Option 1), additional payments made by the insured for policy enhancements (Option 2), or premium payments made by the insured to the insurance company (Option 4).