What does 'full coverage' mean in the context of auto insurance?

In the context of auto insurance, 'full coverage' typically refers to a combination of liability, collision, and comprehensive coverage. Liability coverage protects against claims for bodily injury and property damage to others if you are at fault in an accident. Collision coverage pays for damage to your own vehicle resulting from a collision, regardless of fault. Comprehensive coverage, on the other hand, protects against losses due to non-collision incidents such as theft, vandalism, or natural disasters.

This comprehensive approach ensures that a policyholder is not only covered for their legal responsibilities but also for damage to their own vehicle, offering a more robust protection package. This is why the understanding of 'full coverage' encompasses these three vital types of insurance, providing a safety net in various scenarios.

The other options do not encompass the breadth of protection that 'full coverage' implies; for instance, basic liability coverage alone does not encompass any protection for the policyholder's own vehicle, while coverage limited to theft or high-value vehicles does not encapsulate the holistic approach that 'full coverage' provides.