In conversations with new clients, a common phrase tends to come up when I ask about what coverage you have in place currently. Often, I hear the answer, “I have full coverage.”
In my world of risk and insurance, this can mean a lot of different things. When I hear it from new clients, it usually means they have trusted their previous agent to provide them with the right coverage.
You should be able to trust your agent, but it’s important to have a clear understanding when it comes to your coverage. Insurance can be a complicated topic. “Full Coverage” might not communicate what you want it to.
If you’ve said to an insurance agent, “I have full coverage,” they generally think you mean one of these two things:
- Physical Damage coverage included on your vehicle
This is the terminology we use to describe the coverage for your own vehicle. If you have Physical Damage coverage, your policy will cover the damages, less any deductible.
- Full Tort vs Limited Tort
This section is specific to Pennsylvania. Other states may have other rules or legal language.The Tort option you select determines what you retain the legal right to sue for. If you have Full Tort, you have the right to sue for Non-Economic Damages (think Pain & Suffering claims in a lawsuit). If you have Limited Tort, your right to sue for Non-Economic Damages is limited to extreme cases, such as if you’re hit by a drunk driver.So why would anyone select Limited Tort? Simple – it’s less expensive.What should you select? I recommend Full Tort if you can afford it, but first make sure you have the right liability coverage in place to protect the assets you already have.
When you say, “I have full coverage,” you might have meant either of these things, or something very different. This can create a significant miscommunication between you and your agent.
When you say, “I have full coverage,” you might have meant either of these things, or something very different. This can create a significant miscommunication between you and your agent.
You might think this communicates what your policy covers. They might think you have specific information about your policy and they will try to copy that. In all likelihood, the quote you get will be different from the one you already have.
To fix this miscommunication, if you don’t know what coverage you have simply say as much. A good insurance agent will take this as a cue to help educate you about your coverage options.
And if they don’t help to educate you or provide you with examples of coverage, you’ll then know to find someone else to work with you.
Your insurance agent should be someone you can trust to help you get the protection you need. This means that it’s OK to share a copy of your current policy and to answer questions honestly.
Our goal is to provide you with the peace of mind that you’re protected when the unexpected happens. If you don’t have that peace of mind, call us today and we’ll help you find it.