Louisiana Personal Lines Producer Series 107 Practice Test

Question: 1 / 400

What does "full coverage" typically refer to in auto insurance?

A policy that includes only liability coverage.

A policy that covers only comprehensive risks.

A policy that includes both liability and comprehensive/collision coverage.

The term "full coverage" typically refers to an auto insurance policy that includes both liability coverage and comprehensive and collision coverage. Liability coverage protects you from costs associated with damages or injuries you cause to other parties in an accident. Comprehensive coverage helps pay for damages to your own vehicle that are not caused by a collision, such as theft, vandalism, or natural disasters. Collision coverage helps pay for damages to your own vehicle resulting from a collision with another vehicle or object. Together, these coverages provide a more comprehensive level of financial protection for drivers, which is why option C accurately reflects the essence of "full coverage."

The other options focus on limited aspects of coverage, which do not encompass the full spectrum of financial protection that "full coverage" implies.

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A policy that covers bodily injury only.

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