Ideally, full coverage auto insurance would include every kind of coverage you would ever need. In practice, though, full coverage is usually taken to mean comprehensive and collision insurance. Generally speaking, when a financing institution explains that you need to carry "full coverage" for the period of your automobile loan, they are referring to these two coverage areas.

Comprehensive Coverage

Comprehensive coverage on your auto insurance policy is insurance for vehicle damage that was not caused by a collision. This type of coverage may pay for damages to your covered vehicle from theft, natural disasters, vandalism and falling objects.

Collision Coverage

Collision coverage helps to cover expenses incurred during a collision. This type of coverage is generally required when a financing institution has a lien on the vehicle title.

Medical Expenses

The medical-expense option is coverage that will help pay for any medical needs that arise as a direct result of an accident in which you were involved.

Uninsured and Underinsured Coverage

Uninsured and underinsured coverage helps pay for medical costs, repair bills, lost wages and/or other expenses incurred as a direct result of a collision with an uninsured, underinsured or unidentified driver.

Income Loss

Income loss coverage helps pay wages you lose while recuperating from an automobile accident.

Other Coverage Types

Other types of coverage included in some auto insurance policies include rental reimbursement, towing, labor and loan or lease payoff. Some insurance companies may also offer coverage designed to pay for a vehicle that is not reparable after a collision and in which the value of the vehicle is less than what you owe. This type of coverage is often referred to as "gap insurance."

Source:

Nationwide: Full Coverage Auto Insurance

InsuranceQuotes.com: What Is Full Coverage?

Farmers.com: Auto Insurance FAQ

Resource:

GSA.gov: Nine Ways to Lower Your Auto Insurance Cost

Insurance Information Institute: Auto Insurance

North Dakota Insurance Department: Auto Insurance FAQ