What Does Full Coverage Auto Insurance Actually Mean?
May 08 2025 18:00

If you’ve ever shopped for car insurance, you’ve probably heard the term “full coverage.” But what does full coverage auto insurance really mean in Texas—and do you actually need it?

 

At DeShazo Insurance, we get this question a lot, especially from drivers in Sugar Land, Katy, and Fulshear. Let’s break down what full coverage includes (and what it doesn’t), so you can make an informed decision about your policy.

 

“Full Coverage” Isn’t One Policy—It’s a Combo

First, here’s the truth: there’s no official policy called “full coverage.” It’s a common term used to describe a combination of coverages that go beyond the bare minimum required by Texas law.

 

Most “full coverage” auto insurance packages include:

  • Liability Insurance – Covers injuries or damage you cause to others
  • Collision Coverage – Pays for damage to your car from an accident
  • Comprehensive Coverage – Covers non-collision damage like theft, hail, or vandalism
  • Uninsured/Underinsured Motorist Coverage – Protects you if the other driver doesn’t have enough insurance
  • Personal Injury Protection (PIP) or Medical Payments – Helps with medical costs for you and your passengers

So when someone says they have full coverage, they usually mean they have all of the above.

 

Do You Need Full Coverage?

It depends on your situation. Here are a few guidelines:

 

You should consider full coverage if:

  • Your car is less than 10 years old
  • You’re financing or leasing your vehicle (required by lenders)
  • You can’t afford to replace your car out-of-pocket after an accident
  • You live in an area with high accident or theft rates (looking at you, Houston!)

You might not need full coverage if:

  • You drive a paid-off vehicle with low market value
  • The cost of full coverage is higher than your car is worth
  • You’re financially able to cover your own repairs or replacement

Pro tip: We’ll help you calculate your car’s value vs. the cost of full coverage to see if it’s worth it.

 

What’s Not Included in Full Coverage?

Even with a robust policy, there are things full coverage doesn’t automatically include, such as:

  • Roadside assistance or towing (available as an add-on)
  • Rental car reimbursement after an accident
  • Gap insurance (covers the difference between your car loan and its value if totaled)
  • Custom parts or aftermarket mods (may need special endorsements)

We’ll walk you through optional add-ons that make sense for your lifestyle and budget.

 

Real-World Example: Sugar Land Driver vs. Katy Commuter

 

Let’s say Emma in Sugar Land drives a newer SUV for work and school drop-offs. Her car is still under a loan, and she commutes via Hwy 6 and I-69. Full coverage makes sense—it protects her car and satisfies her lender.

 

Now compare that with Ron in Katy, who drives a paid-off 2008 sedan mostly around town. For him, carrying just liability may be more cost-effective—but only if he can afford to replace the car out of pocket.

 

Final Thoughts

“Full coverage” isn’t a one-size-fits-all answer—it’s about finding the right mix of protection for your life, your car, and your risk tolerance. At DeShazo Insurance, we help drivers across Texas customize their auto insurance so they’re never overpaying for coverage they don’t need—or underinsured when it matters most.

 

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