Liability Insurance Coverage Comparison: 100/300/25 vs 10/20/5
An explanation of the difference in coverage between 100/300/25 and 10/20/5 auto liability limits, including expected loss scenarios, lawsuit exposure, and whether 100/300/25 is adequate for Texas drivers.
Overview of Coverage Limits
Auto liability limits are expressed as:
Bodily Injury per Person
Bodily Injury per Accident
Property Damage
Comparison of Limits:
10/20/5 Limits
$10,000 bodily injury per person
$20,000 bodily injury per accident (2+ people)
$5,000 property damage
100/300/25 Limits
$100,000 bodily injury per person
$300,000 bodily injury per accident (2+ people)
$25,000 property damage
Additional Coverage Provided if you select the higher limits
If two or more people are injured, the difference in total available coverage is:
$300,000 (100/300/25) – $20,000 (10/20/5) = $280,000 more bodily injury coverage
For property damage:
$25,000 – $5,000 = $20,000 more
Thus, the 100/300/25 policy provides **$300,000 more total financial protection** in multi‑injury and property claims combined.
Expected Loss Scenarios
a. Minor Two‑Person Injury Accident
Typical ER visit + follow‑up: $4,000–$7,500 per person
Total likely cost: $8,000–$15,000
Outcome:
10/20/5: May barely cover injuries, no room for property damage.
100/300/25: Easily covers damages with significant margin.
b. Moderate Injury Accident
Broken bones, imaging, therapy: $20,000–$40,000 per person
Total cost for two people: $40,000–$80,000
Vehicle repair (average Texas SUV): $8,000–$12,000
Outcome:
10/20/5: Exceeds both injury and property limits.
100/300/25: Within limits for most scenarios.
c. Severe Injury With Hospitalization
Trauma care + surgery: $75,000–$250,000 per person
Outcome:
10/20/5: Catastrophic underinsurance.
- 100/300/25: Still insufficient for worst cases but a major improvement.
Lawsuit Exposure Differences
With 10/20/5 Limits
Extremely high risk of personal lawsuit because damages exceed limits quickly.
Injured parties may pursue:
- Wage garnishment
- Property liens
- Seizure of assets
- Attorneys are far more likely to file suit due to low policy limits.
With 100/300/25
Most accidents settle within insurance limits, dramatically reducing lawsuit potential.
Plaintiff attorneys often avoid lawsuits when sufficient limits are available.
Lower risk of personal financial exposure.
Is 100/300/25 Enough for Texas?
Texas Averages (2024–2025 Data)
Average bodily injury liability claim: $22,600
Average property damage claim: $6,800
Serious injury accidents often exceed $150,000 per person
Increasing frequency of large lawsuit verdicts in urban counties (Dallas, Tarrant, Harris)
My Assessment:
100/300/25 is considered the minimum “responsible” coverage level** for most Texas households.
It protects against the majority of common accidents.
It is not enough for those with higher net worth or exposure to litigation.
Drivers in Texas with assets over $100,000 generally upgrade to:
250/500/100, or Umbrella coverage ($1M–$5M)
Conclusion
Upgrading from 10/20/5 to 100/300/25 offers a dramatic improvement in protection, providing $280,000 more coverage for multi‑injury accidents and $20,000 additional property protection, while substantially lowering the risk of personal lawsuits. For most Texas drivers, 100/300/25 is an appropriate baseline level, though higher limits or an umbrella policy may be advisable for added financial security. I personally carry an excess policy.
