Ace the OTL Challenge 2025 – Unlock Your Insurance Success Story!

Question: 1 / 400

In auto insurance terminology, what does "full coverage" imply?

Liability coverage only

A combination of liability, collision, and comprehensive insurance

"Full coverage" in the context of auto insurance refers to a combination of liability, collision, and comprehensive insurance. This terminology is commonly used to describe a level of coverage that goes beyond the minimum required by law, which typically only includes liability insurance.

Liability insurance covers damages caused to others in an accident where the insured is at fault. Collision insurance covers damages to the insured’s vehicle from a collision, whether it is with another vehicle or object. Comprehensive insurance covers damages to the vehicle from non-collision events, such as theft, vandalism, or natural disasters.

Choosing "full coverage" generally indicates that the insured is seeking a more robust protection plan that provides adequate coverage for both their own vehicle and liabilities to others, rather than just fulfilling the basic requirements that might be mandated by state laws.

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Minimal required coverage by law

A policy that covers all types of vehicles

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