What does 'full coverage' refer to in an auto insurance policy?

'Full coverage' in an auto insurance policy typically refers to a combination of various types of coverage that protect the insured vehicle and its driver against a range of risks. The most common understanding of full coverage includes liability coverage, which is required by law and covers damages to others if the policyholder is at fault in an accident, as well as collision coverage, which pays for damages to the insured vehicle from an accident regardless of fault, and comprehensive coverage, which covers a multitude of non-collision-related incidents such as theft, vandalism, natural disasters, and falling objects.

This comprehensive protection is what distinguishes full coverage from other insurance options that may include only one type of protection or be limited in scope. By covering both collision and comprehensive damages, along with the essential liability coverage, full coverage serves to shield policyholders from both legal and repair costs associated with a broader range of accidents and losses, making it a comprehensive safety net for drivers.