What is the main distinction of Economic Only coverage?

Economic Only coverage specifically refers to an insurance policy that is designed to cover only measurable financial losses incurred as a result of an accident. This includes expenses such as medical bills, property damage, and lost wages that can be quantified in monetary terms.

The key feature of this type of coverage is that it explicitly excludes non-economic damages, which typically encompass pain and suffering, emotional distress, and loss of enjoyment of life. These non-economic damages can be more subjective and are harder to define and quantify, which is why they are not included in Economic Only policies.

In the context of the covered options, the clarification about non-economic damages reinforces the focus of this coverage type solely on economic losses, making it a more limited form of protection. This distinction is essential for understanding the wider implications of auto insurance policies and liability in accidents.