“If you’re at fault in an accident, you are responsible for any resulting damages or injuries. Once your insurance limits are exhausted, you’re required to pay for the rest out of pocket.
In some cases, the other driver’s underinsured motorist coverage
may apply. However, their insurance company will attempt to recover any money that they pay out. This means you’d still be responsible for the amount and they could file a suit against you to recover any damages.
Should you be unable to pay for the damages, they could garnish your future wages or assets to pay for them. This is one reason why it’s extremely important to carry the highest limits of insurance coverage that you can afford.
While you may have to pay more upfront, you can avoid any financial hardship that an at-fault accident may cause in the future.