What type of damages does an auto insurance policy typically cover?

An auto insurance policy typically covers bodily injury, property damage, and medical payments, which makes this answer the most comprehensive and accurate portrayal of the types of damages typically included in such policies.

Bodily injury coverage helps pay for medical expenses, lost wages, and pain and suffering that arise when the insured is at fault in an accident that injures another person. Property damage liability coverage provides financial protection if the policyholder causes damage to someone else's property, such as their vehicle or another object. Medical payments coverage assists with the payment of medical expenses for the insured and passengers in their vehicle after an accident, regardless of who is at fault.

While other answer choices mention important issues, they either contain incomplete coverage or mischaracterize the types of damages. For instance, emotional distress is not typically covered under standard auto insurance, and punitive damages are rare in auto insurance claims. By understanding the core elements of coverage—bodily injury, property damage, and medical payments—you can better grasp the protections an auto insurance policy provides.