Which term describes a car insurance policy that includes liability coverage along with other coverages?

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

Answer: (D)

Full coverage describes an auto insurance policy that includes liability protection along with additional coverages like collision and comprehensive. Liability coverage pays for injuries or property damage you cause to others. Collision coverage pays to repair or replace your own vehicle after a crash, and comprehensive coverage handles non-collision events such as theft, vandalism, or weather-related damage. When a policy combines liability with these other protections, it’s referred to as full coverage. The other terms don’t fit as well because liability coverage alone covers only damages you cause to others, the policyholder is simply the person insured, and collision coverage is just one type of coverage rather than the overall policy description.