Is $750K in Car Accident Coverage Necessary?
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| Is $750K in Car Accident Coverage Necessary? |
Whether or not you need $750,000 in car accident coverage depends on your personal situation — your assets, driving habits, location, and risk tolerance all matter.
What Is Car Accident Coverage?
This typically refers to liability coverage, which pays for injuries or damages you cause to others in an accident. Most states require a minimum amount, but that minimum is often far too low to cover serious accidents.
Why $750K?
That’s a high limit, often part of an umbrella policy or a high-limit liability plan. Here's why some people go that high:
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Medical costs can be huge. A serious injury or fatality can easily lead to lawsuits demanding hundreds of thousands — or even millions.
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You have assets to protect. If you own a home, have savings, or valuable property, you could be sued beyond your policy limits if you're underinsured.
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You drive a lot or in risky conditions. More time on the road means higher risk.
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Peace of mind. Higher limits reduce the chance of being personally liable after a bad accident.
When It's Probably Not Necessary
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You don’t have significant assets.
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You drive infrequently and in low-risk areas.
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You're comfortable with the standard limits (e.g., $100K/$300K) and the risk of potential out-of-pocket costs.
What’s the Cost Difference?
Surprisingly, going from a basic policy to a much higher limit often doesn’t cost that much more — maybe just a few extra dollars a month. The added protection is usually worth it for those with something to lose.
Bottom Line
You don’t need $750K in coverage unless your personal risk and assets justify it — but in today’s legal and medical climate, higher coverage is often a smart, affordable safety net.
Want to explore what kind of coverage would make sense for you personally? I can help you calculate it.