“Full coverage” in the context of auto insurance is a colloquial term that typically refers to a combination of insurance coverages that protect both you and your vehicle. It’s not a technical or official term in the insurance industry, but when people refer to “full coverage,” they usually mean a combination of the following types of coverage:
- Liability Coverage: This is mandatory in most states and covers damages you might cause to others in an accident. It consists of:
- Bodily Injury Liability: Covers medical expenses, lost wages, and other damages for other people injured in an accident you cause.
- Property Damage Liability: Covers the repair or replacement of property you damage in an accident (like someone else’s car).
- Collision Coverage: This covers damage to your own vehicle resulting from a collision, regardless of who was at fault.
- Comprehensive Coverage: This covers damage to your car not caused by a collision. This includes events like theft, vandalism, fire, natural disasters (hurricanes, floods), damage from animals, and falling objects.
- Medical Payments (MedPay) or Personal Injury Protection (PIP): Covers medical expenses for you and your passengers after an accident. PIP also might cover lost wages and other related expenses.
- Uninsured/Underinsured Motorist Coverage: Protects you if you’re in an accident caused by a driver who doesn’t have insurance (uninsured) or doesn’t have enough insurance to cover the damage (underinsured).
It’s important to understand that “full coverage” doesn’t mean you’re covered for every possible situation or expense. Many people define “full coverage” as just liability, comprehensive, and collision coverage only. Also, there might still be limits on your policy in terms of maximum payouts, and there are other types of coverage that you might need or want based on your circumstances. Always read your policy details and discuss your coverage needs with an insurance agent to ensure you’re adequately protected.
Expanded Auto Insurance Choices in Texas
While the previously mentioned insurance varieties set the standard for comprehensive coverage in Texas, the minimum thresholds might not suffice for your specific requirements. For instance, if you possess assets valued at $1 million, safeguarding them with equivalent liability coverage can prevent potential losses in legal disputes.
Although Texas considers Medical Payments Coverage (MedPay) optional, it’s an affordable add-on that covers injuries from vehicular accidents. MedPay is especially handy when your primary health insurance might have certain limitations, capped coverages, or steep deductibles. But, if you’re already covered under robust health insurance or have personal injury protection, the benefits of MedPay might overlap, making it redundant.
Texas law also deems other coverages like gap insurance, roadside aid (often termed towing and labor), and coverage for rental car expenses as optional.
It’s essential to remember that not every resident of Texas will need all the coverage options available under a comprehensive policy. However, periodically reassessing your insurance requirements is crucial since personal circumstances evolve. To ensure your coverage remains up-to-date, regular reviews are advised. For a more in-depth understanding, consider exploring WalletHub’s comprehensive insurance guide.