What are supplemental payments in auto policies?

Supplemental payments in auto insurance policies refer to the expenses that an insurance company covers in addition to the policy limits of liability. This includes costs such as bail bonds, court costs, and reasonable expenses incurred by the insured for assistance, such as loss of earnings when attending court. The purpose of these supplemental payments is to provide additional financial support beyond the primary coverage limits, enhancing the protection and peace of mind offered by the insurance policy.

Payments for vehicle enhancements are typically not included as supplemental payments; rather, they might fall under coverage for additional options or endorsements if specified in a policy. Payments for damages caused by third parties are generally covered by the liability portion of the auto policy itself, which would not be considered supplemental. Legal fees associated with accidents may also be included under supplemental payments, but that is a narrower perspective; supplemental payments encompass a wider range of costs beyond just legal fees.