(800) 253-1482Liability vs Full Coverage Car Insurance in Texas
Summary: Tennessee has one of the highest rates of uninsured drivers in the U.S., with over 23% lacking coverage, leaving drivers vulnerable to financial losses. Uninsured/underinsured motorist (UM/UIM) coverage protects against medical bills and vehicle repair costs after accidents with drivers who don't have enough coverage or auto insurance at all. UM coverage includes bodily injury and property damage, while UIM coverage bridges the gap when the at-fault driver’s insurance is insufficient. Though optional, UM/UIM coverage offers vital financial protection, especially with the challenges of hit-and-runs and legal battles. Tennessee generally prohibits stacking UM coverage, limiting recovery to the policy with the highest limits in an accident, but by comparing carriers, drivers can find the right amount of protection and save on premiums. Estimated Read Time: 4 mins
Table of Contents:
- The Difference Between Liability and Full Coverage Insurance in Texas
- Do You Need Liability or Full Coverage in Texas?
- Additional Protection Options For Liability Only vs Full Coverage in Texas
- How Much Cheaper Is Liability vs Full Coverage in Texas?
- Compare Quotes for Liability vs Full Coverage in Texas
The Difference Between Liability and Full Coverage Insurance in Texas
Comparing liability vs. full coverage points out many differences, in terms of coverage, cost, financial responsibilities, when each is mandatory, and more.
Neither is wrong but there are risks to consider and stipulations that drivers should be aware of before enrolling in coverage.
Car insurance in Texas is essential and should make sense for your needs. Take a closer look at liability vs. full coverage car insurance options below:
Liability Coverage
In Texas, liability auto insurance includes bodily injury coverage for others' medical expenses and property damage coverage for repairing or replacing someone else's property if you're at fault.
However, liability insurance only protects others—it won’t cover damage to your own vehicle or shield you from uninsured motorists or weather-related losses like flooding.
This is why considering full coverage auto insurance is important as you can add protection so you're covered against a wider variety of perils.
Full Coverage
The term full coverage is more of a name the insurance name provides bundles that typically include liability, collision, and comprehensive insurance but isn't a specific policy type.
Furthermore, your coverage can be customized and contain additional types of protection, including:
- Higher liability limits
- Personal injury protection (PIP)
- Medical payments insurance
- Uninsured/underinsured motorist (UM/UIM) coverage
- Gap coverage
- Rental car insurance
- Roadside assistance
- And more
As you can see, having auto insurance with full coverage vs liability provides drivers with much more protection and it can be customized to meet specific needs.
Liability vs Full Coverage Deductibles
Coverage isn’t the only thing that is different between full coverage vs liability.
Deductibles are the financial responsibility of you as a driver before your auto insurer provides compensation. Here’s the difference between the coverages:
- Liability coverage doesn’t come with a deductible.
- Comprehensive coverage deductibles come in $500 intervals reaching around $500 to $1,500 on average.
- Collision coverage also has deductibles and can be as low as $200 or even as high as $2,000.
It’s important to note that the higher your deductible is, the more you’ll have to pay after an accident, but your monthly premiums will be lower.
This is a great way to offset some of the increased costs associated with full coverage vs liability car insurance all while remaining covered against a wider range of perils.
Do You Need Liability or Full Coverage in Texas?
Whether or not you need liability vs full coverage will depend on your personal situation.
Different factors may contribute to you needing to carry full coverage or being in a good place with liability only.
Furthermore, just because Texas law doesn’t require full coverage, doesn’t mean there aren’t situations where drivers are required to maintain these policies.
Here’s a closer look at when you might need full coverage or just liability:
Financing or Leasing
If you are financing or leasing your vehicle, your lender is going to require you to maintain full coverage as a term of your loan.
Every auto agreement is different but these conditions are nearly universal as lending organizations work to protect their risk.
New Vehicle
If your vehicle is 10 years old or newer, full coverage is an excellent option, because the cost of repairing a newer vehicle is often much more expensive.
Furthermore, newer vehicles often cost more and require financing, which brings us back to our previous point.
Full coverage vs liability only is preferred for newer vehicles because they are more valuable, more expensive to restore, and you’ll be covered against more potential perils.
If you have an older vehicle and can handle the added risk, liability only may be a better insurance option than full coverage.
Young Drivers
No matter how you slice it, younger drivers are the most accident-prone group in Texas.
Collision coverage doesn’t take into consideration who is at fault and can help you restore your vehicle.
If there is a young driver in your household, full coverage can help you forgo lofty repair costs in the event of an auto accident.
Financial Protection
Automobile accidents can cost tens of thousands of dollars easily and without the right coverages in place, you could be stuck paying for them on your own.
The full coverage vs liability cost difference per month is much more affordable than spending a large sum of money all at once in the aftermath of a car accident.
Overall, if a large financial hurdle would be problematic for you and your ability to use transportation, full coverage is worth looking into.
Additional Protection Options For Liability Only vs Full Coverage in Texas
Auto insurance should be fit to meet the needs of the individual. Every driver’s needs are different and your protection should reflect this.
Remember, full coverage insurance can provide you with personalized protection that goes beyond the bare minimum—even beyond collision and comprehensive options.
Keep in mind the risks you might face as a driver when comparing liability insurance vs full coverage.
Here are additional coverage options, that drivers in Texas with full coverage may benefit from and how they’ll protect you:
- Gap coverage in Texas pays for the rest of your note if your vehicle is totaled.
- Underinsured/uninsured motorist coverage to protect against drivers with inadequate coverage.
- Roadside assistance can help you with towing or minor repairs while out on the road.
- Medical payments coverage or PIP coverage are options for drivers looking to cover the medical expenses for themselves and their passengers after an accident.
How Much Cheaper Is Liability vs Full Coverage in Texas?
In Texas, liability insurance is over 30% cheaper on average than full coverage.
Since drivers who own their vehicles outright don't have to have full coverage, opting for liability-only car insurance can reduce premiums.
If you're looking to save on premiums, liability only is an option but you will take on more risk in doing so.
Compare Quotes for Liability vs Full Coverage in Texas
Comparing liability vs full coverage is important but it’s also important to compare the different carriers available in your area.
Texas has plenty of top-rated auto insurance companies, however, each driver has a variety of personal factors that insurers will all view differently—this is the leading reason as to why premiums will vary.
The best way to save on premiums without cutting coverage you might need is to compare multiple policies and carriers to find the lowest cost for the protection you deserve.
Use our auto insurance tool below for a free, no-obligation quote to compare your options or ask an agent for a personalized rate:
