What happens when the damage in a four-car accident exceeds the insurance limits available?

Hypothetically, if someone gets in a four-car accident and they are at fault but they have minimum coverage, what will happen to them?

“First, your insurance company would notify the other parties involved in the accident that there is a policy limit issue with your liability coverage. Your company and the other insurance companies would urge the other insureds to file with their own insurance, and then those insurance companies would decide whether to accept your policy limits or pursue you directly for compensation.
If one of the other parties has no first-party coverage, they may have no other recourse but to come after you for their damages.
If one of the other parties hires an attorney, things will get even more complicated.”
Shannon Martin
Answered on May 14, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.

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