I Have “Full Coverage,” Are You Sure? Full Coverage Is Just a Marketing Term
Many drivers believe they have “full coverage” when they purchase auto insurance, but the truth is, there is no such thing as full coverage. It’s a marketing term used by insurance companies to make a policy sound more comprehensive than it really is. Unfortunately, this misconception often only becomes clear after a car accident occurs, when policyholders realize that their coverage may leave significant gaps.
Understanding what your policy actually includes—and what it doesn’t—is especially important in Texas, where the state minimum coverage requirements are limited and may not fully protect you.
Texas Insurance Requirements vs. “Full Coverage”
Under Texas law, drivers are only required to carry:
Bodily Injury Liability (BI) – Pays for injuries you cause to someone else in an accident.
Property Damage Liability (PD) – Pays for damage you cause to someone else’s property, such as their car, fence, or building.
That’s it. Collision coverage, uninsured motorist coverage, and underinsured motorist coverage are not required by law, but many drivers assume they’re included when they hear “full coverage.” This misunderstanding can create major problems after an accident.
What “Full Coverage” Really Means
The term “full coverage” is not a legal term—it simply refers to a combination of coverages that the insurance company sells as “complete.” In reality, this can vary widely depending on your policy and what optional coverages you may have purchased. Common coverages that people mistakenly believe are automatically included:
Collision Coverage – Pays for repairs to your own car after an accident, regardless of who is at fault. Without it, you must pay out of pocket for repairs or replacement.
Comprehensive Coverage – Covers non-collision damage, like theft, vandalism, or weather-related damage. Many drivers assume this is part of full coverage, but it often is not.
Uninsured Motorist Coverage (UM) – Protects you if you’re hit by a driver who has no insurance. Many Texans reject this coverage, sometimes without realizing it, leaving themselves unprotected.
Underinsured Motorist Coverage (UIM) – Covers the gap if the at-fault driver has insurance, but it’s insufficient to cover your damages.
Even if you think you have full coverage, you might only have state minimum liability coverage, or you may have rejected UM/UIM coverage in writing.
Real-Life Consequences of “Full Coverage” Misunderstandings
Consider this scenario: You’re driving when another motorist hits you. You assumed you had full coverage, but after the accident, you discover your policy only includes minimum liability and no UM/UIM coverage. The at-fault driver has no insurance and no assets. In this situation, you may have no way to recover damages—even though you believed you were fully protected.
This is far from uncommon. Many insurance adjusters, sales representatives, or brokers may casually assure you that you have full coverage, but unless you carefully review your policy, you might be misled. The result can be devastating: medical bills, vehicle repair costs, and lost wages that you are forced to pay out of pocket.
How to Protect Yourself
Review Your Policy Carefully – Don’t rely on the words “full coverage.” Check your declarations page to see exactly what coverages you purchased and their limits.
Consider Optional Coverage – Collision, comprehensive, UM, and UIM coverage can protect you from financial disaster after an accident. Even if optional coverage increases your premium slightly, it can save you thousands in the event of a serious crash.
Ask Questions Before Purchasing – Always confirm with your agent what is and isn’t included. Specifically ask about UM/UIM coverage, and make sure it’s included if you want protection against uninsured or underinsured drivers.
Consult an Attorney After an Accident – If you’re involved in a car accident, do not simply accept your insurance company’s representation of coverage. An experienced personal injury attorney can review your policy, identify gaps, and help maximize the compensation you can recover.
