What Is Considered Full Coverage in Texas?

“Full coverage” is a commonly used term in auto insurance, though it does not represent a single, legally defined policy. It generally refers to a combination of policies offering broad protection for your vehicle and financial assets, beyond Texas’s minimum legal requirements. Texas has specific minimum insurance requirements that form the baseline for any auto insurance policy.

Required Minimum Coverages in Texas

Texas law mandates that all drivers carry a minimum amount of liability insurance, often referred to as 30/60/25 coverage. These numbers represent the maximum amounts an insurance company will pay for specific damages in an at-fault accident. The “30” refers to $30,000 for bodily injury liability (BIL) per person, covering medical expenses, lost wages, and pain and suffering for another individual injured in an accident you cause. The “60” refers to $60,000 for total bodily injury liability per accident, the maximum your policy will pay for all injured parties in a single incident. The “25” refers to $25,000 for property damage liability (PDL), covering damage to another person’s vehicle or property you cause. These minimums provide a basic financial safety net for others, but they do not cover damages to your own vehicle or injuries to yourself.

Key Components of “Full Coverage”

When people refer to “full coverage,” they typically include several optional coverages in addition to state-mandated liability. These additional coverages provide protection for your own vehicle and personal injuries.

Collision coverage addresses damage to your vehicle from a collision with another vehicle or object, regardless of fault. If you hit a tree or another car, collision coverage pays for repairs to your vehicle up to its actual cash value, minus your deductible. This coverage is particularly relevant for newer or more valuable vehicles.

Comprehensive coverage protects your vehicle from non-collision incidents. This includes damage from events like theft, vandalism, fire, natural disasters (such as floods or hail), and falling objects. If a tree branch falls on your car or it is stolen, comprehensive coverage helps cover repair or replacement costs. This coverage is often required by lenders for financed vehicles.

Uninsured/Underinsured Motorist (UM/UIM) coverage offers protection if you are involved in an accident with a driver who has no insurance or insufficient insurance to cover your damages. UM/UIM can cover bodily injuries, and sometimes property damage, that you or your passengers sustain. This coverage is important because not all drivers comply with minimum insurance laws, and some may have inadequate coverage for serious accidents.

Personal Injury Protection (PIP) and Medical Payments (MedPay) help with medical expenses for you and your passengers, regardless of who caused the accident. In Texas, PIP is automatically included in auto policies unless rejected in writing. PIP can also cover lost wages and essential services you cannot perform due to injuries. MedPay specifically covers medical and funeral expenses for you and your passengers.

Considering Your Specific Circumstances

Determining the appropriate level of “full coverage” involves evaluating your financial situation and driving habits. The value of your vehicle is a significant factor in deciding on comprehensive and collision coverages. If your car is older and has a low market value, the cost of these coverages might outweigh the potential payout after a deductible.

Your financial assets also play a role in determining appropriate liability limits. If you have substantial savings or property, higher liability limits can offer greater protection against potential lawsuits from an at-fault accident. The minimum state liability might not be sufficient to cover extensive damages or severe injuries to other parties.

Driving habits and the environment in which you typically drive should also be considered. Individuals who drive frequently or in congested areas might face a higher risk of accidents, suggesting a need for more robust coverage. If your vehicle is financed or leased, lenders almost always require both comprehensive and collision coverage to protect their investment.