Estimate your needed liability limits
Formula
Recommended liability per accident = (Home equity + Retirement + Other assets + 5× annual income), rounded up to nearest 100/300/250/500/1M tier.
How to use it
- Add up your home equity (market value minus mortgage)
- Add retirement accounts and investments
- Add other significant assets
- Multiply your annual gross income by 5 (a typical wage-garnishment exposure)
- Compare the total against standard liability tiers – round up
Worked example
Family with $80k home equity, $120k retirement, $90k income → ~$650k exposure → carry 500/500/100 plus $1M umbrella.
Frequently asked questions
Does Texas require this much liability?
No – Texas only requires 30/60/25. But minimum limits leave most households exposed to lawsuits.
What is an umbrella policy?
A separate $1M+ policy that sits on top of your auto and home liability. Typically $200–$400/year.
Guides and coverage behind this calculator
Required by Texas law – covers the other driver when you're at fault.
Texas requires every driver to carry 30/60/25 liability. Here is what that actually means, how it compares to real-world claim costs in El Paso, and why most drivers should carry more.
Insurance reporting windows are much shorter than the two-year statute of limitations. Miss the wrong deadline and your claim is dead.
Left-turning drivers are usually presumed at fault in Texas. Here are the exceptions and what they mean for your claim.
Pedestrian crashes are serious and often involve significant medical claims. Here is how Texas liability and coverage handle them.
Every calculator lives in our El Paso insurance calculator hub. When you're ready for real numbers, compare auto insurance in El Paso or ask for a free policy review.
This calculator is for educational estimation only. For a binding quote, talk to a licensed Texas insurance agent or request a free quote.