If you hit and damage more than one car in an accident you still only have $25,000 worth of property damage (PD) liability. The amount of $25,000 is your PD liability limit for any property damage you cause to others in one incident.

So if you hit more than one car than all of owners of the vehicles you hit would place claims against your property damage liability coverage. If your limit is exceeded then it will depend upon state laws but normally the people that you damaged can then come after you personally for the amounts that their damages exceed your limits.

If you have bodily injury liability limits of $25,000/$50,000 then it would mean in an accident that for one person injured the most that person could receive from your policy is $25,000 while the $50,000 is the most that would be paid out to all parties injured, no matter the number. So if you injured 4 people they could not get $25,000 each but in total the amount your insurer would pay for all injuries sustained in one accident would be $50,000.

The way that it is determined how people get paid if you have harmed more than one driver or vehicle in an accident differs according to state laws and insurance guidelines. It may be that if a person waits to make a claim against your policy and 2 others that you damaged already made claims and collected the limits of your $25,000 that this person would then be denied since your limits would be exceeded and thus come after you personally for the expense of their damages.

That is why it is important to buy higher limits if possible for your liability coverages. Without having a high enough limit for an accident your personal assets can be at risk in a lawsuit.

If you select limits that are too low, you could be putting yourself at risk financially.
As we have shown in examples above, if either you or a driver covered by your policy cause a serious injury where damages exceed your limits, you will be held responsible for the amount above your limits. To make that payment, you could be forced to liquidate property, savings, and other assets, or your future earnings could be attached. By purchasing liability limits to account for both your current assets and future net worth, you can help protect yourself against this risk.