Washington State Insurance Practice Exam

What does "full coverage" auto insurance include?

1. Only liability coverage

2. Liability, collision, and comprehensive coverage

3. Only collision and liability coverage

4. Only comprehensive coverage

The correct answer is: Liability, collision, and comprehensive coverage

"Full coverage" auto insurance typically refers to a combination of liability, collision, and comprehensive coverage. This term is commonly used in the insurance industry to indicate a more extensive insurance policy that provides broader financial protection for a vehicle owner. Liability coverage is essential as it covers damages or injuries that the insured driver may cause to other parties in an accident. Collision coverage protects against damage to the insured's vehicle resulting from a collision, regardless of who is at fault. Comprehensive coverage goes further by covering a wide range of events that can cause damage to the vehicle, such as theft, vandalism, or natural disasters. Together, these three components offer a more complete safety net for drivers, addressing both their legal obligations and financial risks associated with vehicle ownership and operation. Understanding this combination is crucial for anyone seeking to ensure they are sufficiently protected on the road.