By The Lambert Agency | Austin, Texas
If you have ever shopped for car insurance, you’ve most likely heard the phrase “full coverage”. It’s one of the most commonly used terms in the auto insurance industry, yet it’s also one of the most misunderstood terms in the car insurance industry. Many Texas drivers will assume “full coverage” means they’re absolutely protected from any and all incidents which may occur on the roadways. This is not exactly true.
Here at The Lambert Agency in Austin, Texas, we believe every driver should know exactly what they’re paying for, so let’s explore what “full coverage” actually means, and what it does not mean as well.
There’s No Such Thing as “Full Coverage”
Despite how often the term “full coverage” may be used in the auto insurance industry, it’s not a specific type of auto insurance policy. It’s quite simply a way of referring to a combination of coverages which will go beyond the state imposed minimum requirements.
In the state of Texas, the law really only requires you to carry liability insurance, which is what covers other people’s property and medical expenses if you are the one deemed to be at fault in an accident. “Full coverage” will usually refer to a policy which also includes:
- Collision coverage: This level of coverage will protect your car after an accident, regardless of who is at fault.
- Comprehensive coverage: This level of coverage will protect against theft, vandalism, storms, floods, fires, or striking an animal with your vehicle.
These two types of coverages, when combined, are what most people are referring to when they mention “full coverage”.
What “Full Coverage” Doesn’t Cover
Many drivers will be caught off guard when they hear “full coverage”, as full coverage does not protect you from each and every possible loss. Depending on your policy, you may still end up missing out on key protections such as:
- Uninsured/Underinsured Motorist (UM/UIM): This protection offers coverage if another driver causes an accident, but is either underinsured or has no insurance coverage at all.
- Personal Injury Protection (PIP): This protection will help pay for medical bills and lost wages, regardless of who is deemed at fault with the accident.
- Roadside Assistance: This protection assists with towing, lockouts, or flat tires.
- Rental Reimbursement: This protection will cover the cost of a rental car as your vehicle is being repaired.
If your end goal is true financial protection, you’ll want to add these optional coverages for complete peace of mind.
Why “Full Coverage” Means Different Things to Different People
What one person may call full coverage may not match another person’s definition. A driver with a newer vehicle may include gap insurance and rental car coverage, whereas someone with an older vehicle may only end up carrying liability and comprehensive coverage.
The key to this process is, “full coverage” should mean full protection for your unique situation. The right auto coverage policy is one which matches your car’s value, your budget, and your tolerance for risk, not just a simple label on a piece of paper.
Do You Need Full Coverage in Texas?
Texas law does require liability coverage, yet if you’re financing or leasing your vehicle, your auto financing group will nearly always require collision and comprehensive coverage.
Even if you own your car outright, you should consider the cost to replace the vehicle to an equivalent value of the car. If you would actually struggle to pay for major repairs or a total loss, full coverage is worth the investment itself. On the other hand, if your car’s value has dropped significantly, it may make more sense to drop collision coverage and save on your premiums.
A licensed insurance agent, such as The Lambert Agency, can help you run the numbers before making that decision.
How to Find the Right Level of Coverage
Here at The Lambert Agency, we don’t believe in a “one-size-fits-all” insurance policy. Instead, what we do is take the time to fully understand your vehicle, your lifestyle, and your financial goals. From there, we build a policy which will actually work for you, not just what is out-of-the-box and typical. Here’s what you can do right now:
Review your current policy: Verify what’s actually included under “Comprehensive” and “Collision” coverages
Look for gaps: Verify if you have uninsured motorist or PIP coverage
Get a professional review: Our team at The Lambert Agency can compare quotes from multiple top-rated carriers to ensure you’re receiving the best possible rate and protection.
The Bottom Line When It Comes to “Full Coverage” Auto Insurance
The phrase “full coverage” is certainly a convenient phrase, yet it’s not always a guarantee you’re fully protected. True coverage consists of knowing what’s actually included, what is not included. Here at The Lambert Agency, we’re helping Austin drivers navigate through the sometimes complicated pathways of auto insurance coverage. We want to educate and inform our clients of the best options available to them and build auto insurance plans which actually protect what matters most.
Get a Free Auto Insurance Review in Austin, TX Today!
Do not settle for vague promises of “full coverage” when it’s not actually full coverage. Allow us at The Lambert Agency to help you better understand how your policy works and let us uncover hidden savings embedded within your existing policy to strengthen your overall protection. We look forward to hearing from you soon and we’re eager to begin helping you with your auto insurance coverage in Austin, Texas.