There is a popular saying among insurance buyers these days. You might hear your buddy say, “I have full coverage! I’m fully covered.”
But is that really the case? What exactly is full coverage referring to?
I want to address this topic, as it displays a bit of misconception about what people think they are buying. I blame this on the agents on the modern day; the pitch of saying they can sell you “full coverage” is just too easy.
In my business at TexPro Insurance, using this phrase is on the No-No List. We want to take the time to break down limits, so that our customers clearly understand what they are buying. And with that said, often times the price to improve your coverages can be fairly inexpensive.
“Improve coverages? But I have FULL coverage?
What is full coverage referring to exactly?
Full coverage is referring to the fact that their policy includes comprehensive and collision damage which covers their vehicle in most common accidents. This would cover damages to their vehicle subject to a deductible such as $500 or $1,000.
When you DON’T have this magical thing called “Full Coverage”, it essentially means you just have liability only auto insurance. This would not cover any damages to your car if you were in an accident.
With that said, this leaves us with a main topic of discussion = Liability.
We often tend to neglect liability, and its importance. You can still have “full coverage”, yet have State Minimum level auto liability.
Depending on your state, the minimums vary. However for the state of Texas, the minimum levels are $30,000 per bodily injury/ $60,000 aggregate, and $25,000 property damage liability. Imagine in one instance hitting a Rolls Royce and sending the driver to the hospital for a week. Damages to his property (Rolls Royce) are $37,000, and his hospital bills are $72,000. Your ‘Full Coverage’ auto insurance leaves you completely stranded in an instance like this because you haven’t prepared for it.
As you can see here, the misconception that the saying of full coverage leaves is quite harsh to the insurance buyer. If a buyer is willing to buy ‘full coverage’, it means he/she is willing to purchase good insurance. Having someone like us at TexPro Insurance is critical to understanding the small details. We aren’t in it for the quick sale, just to knock a few bucks off-> we are looking out for you, just like we would for our friends and family.
I hope this article brings some light and information to a common saying that seems to be growing. I encourage you to use an insurance professional; Insurance is such an impactful tool, and we love helping protect our customers for life.
I built my business on this principle. I believe it is a mission to properly inform people, especially with they family and assets.
If you ever have questions call us at TexPro, and if you like call me directly, I always love to talk.
Best,
Zack Baldwin