What Happens If You Hit an Expensive Car?

Last Updated on February 5, 2026

Getting into a crash is stressful. Getting into a crash with an expensive car can feel terrifying—because the dollar signs add up fast. The good news is that the outcome usually comes down to something simple: your liability limits (plus whether anyone was injured).

• If you’re at fault, your liability insurance pays for the other driver’s damage and injuries—but only up to your policy limits.
• Expensive vehicles can blow through property damage limits quickly, and injuries can exceed bodily injury limits even faster.
• If total costs exceed your limits, you may be personally responsible for the remaining balance and could face a lawsuit.
• Raising liability limits (and possibly adding an umbrella policy) is one of the best ways to protect yourself financially.

Quick answer: what happens if you hit an expensive car?

If you’re at fault, your liability coverage is designed to pay for the other driver’s vehicle damage and injuries—up to the limits on your policy. If the total costs are higher than your limits, you can be personally responsible for the remaining amount.

Step 1: figure out how much coverage you actually have

Many drivers carry the lowest limits allowed by law because it’s cheaper upfront. The risk is that minimum liability coverage can be burned up quickly—even in a moderate crash.

Auto liability is typically split into two buckets:

• Property damage: pays for the other person’s vehicle (and sometimes other property you damage).
• Bodily injury: pays for injuries to other people.

If you’re not sure how to read your numbers, this guide explains common policy limits and what they mean: what auto insurance limits should I have?

Why expensive cars create “limit problems” fast

With a typical vehicle, your property damage limit might be enough to handle repairs or even a total loss. But with luxury and high-end vehicles, even “small” collisions can turn into large bills due to sensors, specialty parts, paintwork, and repair labor. That’s why some drivers with luxury vehicles carry (or need) special coverage for a high-end or luxury vehicle on their own policies—and why your limits matter so much if you hit them.

Example: your property damage limit can disappear in one claim

Imagine you carry $50,000 in property damage liability. If you total a mid-range truck, you might be okay. But if you total a high-end vehicle, your insurer will pay up to $50,000 and then your policy is “tapped out.” If the other vehicle is declared a total loss and the value is far higher than your limit, you can be exposed for the difference.

Even repairs can surprise you. A pricey door, advanced lighting, and sensor recalibration can dwarf what most drivers expect for something that “looks minor.” (For context on how quickly one component can get expensive, see: car door replacement cost.)

The bigger risk is often injuries, not the car

Property damage gets all the attention because you can see the expensive car. But serious costs often come from medical care and lost income. Your policy’s injury payments come from bodily injury liability coverage, and those limits can be exceeded just as quickly as property damage limits.

Medical bills add up fast (ambulance, imaging, ER care, rehab). Even if someone has health insurance, they may still pursue you for out-of-pocket costs and other damages. For related coverages that can pay medical bills (depending on your state), see: medical payments coverage.

What your insurance company does after you hit an expensive car

If you caused the crash, your insurer will investigate and handle negotiations with the other party (or their insurer). If you’re sued, your insurer typically provides a legal defense up to the limits of your policy as part of your liability coverage.

What your insurer pays—and what you might still owe—depends on:

• Who was at fault (and whether you were at fault in an accident)
• Your policy’s property damage limit (related: property damage liability coverage)
• Your bodily injury limits
• Whether the claim is settled within your limits or becomes an “excess” claim

What if the damage is higher than your limits?

If the other party’s damages exceed your limits, there are a few common outcomes:

1. Settlement within limits: Your insurer negotiates a payout within your coverage limits, and the other party signs a release. This is the best-case scenario.
2. “Excess” demand: The other party (or their insurer) demands more than your policy can pay. Your insurer may still negotiate, but any amount above your limit is potentially on you.
3. Lawsuit: If negotiations fail, the other party may sue you personally. This is where having higher limits—and sometimes an umbrella policy—can matter most.

If you’re worried about what happens next, it’s worth understanding when legal help makes sense: when to hire an auto insurance lawyer.

What if you don’t have enough money to pay the difference?

If you’re personally responsible for an unpaid balance, the other party may try to collect through legal channels. Depending on your state and situation, that could include things like negotiating a payment plan, pursuing a judgment, or trying to collect against available assets or income. (This is one reason it’s risky to assume “my insurance will handle everything” when limits are low.)

FAQs on Hitting an Expensive Car

How to protect yourself before this ever happens

You don’t need to hit a Ferrari, Lamborghini, or Bugatti to exceed low limits. Plenty of everyday vehicles—especially newer trucks and SUVs—can create expensive claims.

To reduce your risk:

• Raise your liability limits to a level that matches your financial life (assets, income, savings).
• Consider an umbrella policy if you want additional liability protection beyond auto limits.
• Review your coverage annually—especially if you buy a home, your income rises, or you start driving more.

Bottom line: a cheap policy can save you money today, but one serious crash—especially involving a high-value vehicle or injuries—can create financial exposure that lasts a long time.