What term is sometimes used to describe a car insurance policy that includes liability, comprehensive, and collision coverage?

• A. Collision coverage
• B. Full coverage
• C. Liability coverage
• D. Comprehensive coverage

Answer: (B)

Full coverage describes a car insurance policy that includes liability, collision, and comprehensive protections. Liability covers damages you cause to others; collision pays to repair or replace your vehicle after a crash; comprehensive handles non-crash losses like theft, fire, or weather-related damage. Because it combines all three major protections, it’s commonly described as full coverage. The other terms refer to just one piece of that protection: collision coverage only covers your car in a crash, liability coverage only covers others’ damages, and comprehensive coverage only covers non-collision risks.