If your liability car insurance coverage is not enough to cover the damages resulting from an accident, you may be held personally responsible for the remaining costs. This means you may have to pay out-of-pocket for the additional expenses, which can be quite substantial.

When you cause an accident and the damages exceed your coverage limits, the affected party or parties may choose to take legal action against you to recover the remaining costs. This can lead to financial hardship, potential lawsuits, and even the seizure of your assets in extreme cases.

How much liability coverage do you need to avoid out-of-pocket expenses?

To avoid such situations, it’s important to carefully consider your liability coverage limits when choosing an insurance policy. It’s recommended to select coverage limits that adequately protect your assets and financial well-being.

If you’re concerned about potential gaps in coverage, consider exploring additional insurance options, such as umbrella insurance, which provides extra liability protection beyond the limits of your primary policy.


In summary, if your liability car insurance coverage falls short of covering the damages, you could be held personally liable for the remaining costs. It’s crucial to select sufficient coverage limits to protect yourself financially and consider supplemental insurance options if necessary. Be sure to review your policy and consult with your insurance provider to make informed decisions about your coverage.

About the Author: CompuQuotes Editorial
Get smart about saving money on insurance