Does “Full Cover or Full Coverage” really exist?

Be careful with the “Full Coverage” myth

When people ask for “Full Coverage” they think that everything is fully covered by their policy, but they might be unpleasantly surprised at a time of an accident.

The term “full coverage” originated as a term coined by Banks (Lienholders) to refer to coverage that vehicles they finance should carry.  There coverages are collision and comprehensive.  So, when you call in to your insurance agent and ask for “full coverage”, you will be getting collision and comprehensive coverage only.  If you wanted more coverage than that, such as rental car, towing, uninsured motorist, etc., you’ll have to ask for it specifically.

Collision will cover physical damages to the vehicle caused during an accident.  Comprehensive will cover damages to the vehicle due to vandalism, flood, fire and theft. Both coverages have a deductible that have to be met before payment is made.  It’s these two coverages that the Bank will require you to have on your vehicle if they are financing it for you. And they call that “full coverage” but is it enough?

What other coverages do I need?

As you can see “Full Coverage” does not mean everything will be covered in the event of an accident.  Coverages such as rental reimbursement, towing, medical payments, personal injury protection and uninsured motorist (both bodily injury and property damage) are separate coverages that are not part of “Full Coverage”.

It’s also worth mentioning that you will be covered up to the limits of your policy.  Therefore, it’s important to know what all those figures on your declarations page mean. If you are not sure what they mean, talk to your insurance agent. That’s what they are there for, to make sure you know what coverages you have.

What do my limits cover?

Let’ break it down.  If you have a policy that covers $30,000/$60,000 in Uninsured Motorist Bodily Injury, your policy will pay $30,000 per person in bodily injury and up to $60,000 per accident if you and/or your passengers are hurt when someone hits you and they didn’t have any insurance or didn’t have enough insurance.

Are you accurately insured?

The minimum coverage of liability and uninsured motorists in Texas is only $30,000/$60,000 in bodily injury and $25,000 in property damage.  Now if you cause an accident which results in over $100,000 of property damage, and only have the minimum required by law, your policy would pay only up to $25,000 in property damage. Leaving you responsible for the difference. That’s why it’s so important to be accurately insured.

If you would like this type of insurance and an insurance agent that gives you excellent service, we have good news! We are here to help.  Join us and become one of our happy customers.  You can reach us 281-492-2062.

If you like this type of service and would like to have such service yourself, you are in luck.  We are here to help you. Join our customer base today.

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Katleen Huybrechts Muñiz  

Insurance Agent

Maximum Insurance Solutions Group

Katy, Texas