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Kansas City Chiefs receiver Rashee Rice has a Super Bowl ring. Now that ring is listed in his bankruptcy case.
Rice filed for Chapter 7 bankruptcy on Nov. 4 in federal bankruptcy court in the Northern District of Texas, according to KCTV5. Court documents show just over $675,000 in assets and more than $3.2 million owed to 20 creditors. (1)
Much of that debt traces to one morning. KCTV5 reports Rice owes millions in settlements and legal fees tied to a six-car crash he caused on Easter morning in 2024. (1)
NBC 5 Dallas-Fort Worth reports that Kathryn Kuykendall, a woman who says she was injured in the crash, reached a $1 million civil settlement with Rice in April 2025. A judge signed a judgment for $1 million plus interest and attorney fees. Her attorney says she “hasn’t been paid a dime.” (2)
I served on the advisory board of a local Consumer Credit Counseling Service, and I’ve been a CPA since 1981.
Here’s what bothers me about this story: You don’t need to drive a rented Lamborghini at 119 mph, as prosecutors say Rice’s car was going, to face a judgment bigger than your insurance. (2)
In Texas, where the crash happened, the minimum liability coverage is just $30,000 for one person’s injuries. (3)
Here are five ways to keep one bad moment behind the wheel from taking your retirement savings with it.
1. Your state’s minimum is probably too low
Texas requires $30,000 for bodily injury to one person, $60,000 for two or more people, and $25,000 for property damage in one collision. (3) If that’s all you carry, you’re thinly protected.
Now picture a serious injury with surgery and months of lost wages. Your insurer pays up to your limit. The rest is between you and the other driver’s lawyer.
Next time your policy renews, look at your liability limits, not just your premium. Then compare. Insurify lets you see side-by-side quotes from multiple insurers in one place, so you can price higher limits before you decide.
2. Above your limits, it’s your money
Maryland’s insurance regulator gives a simple example: $250,000 in injuries and lost wages caused by a driver with $100,000 in auto bodily injury coverage leaves a $150,000 gap. (4)
Without more coverage, you could be on the hook for that gap yourself. (4)
For a retiree, the target isn’t a paycheck. It’s whatever you’ve saved.
Quick gut-check — if your money advice is coming from random online influencers, you’re playing a dangerous game. I’ve been a CPA since 1981 and writing about money since before the internet existed. Sign up for the free Money Talks Newsletter and get expert advice that’s been tested by time.
3. An umbrella policy fills the gap
In that same Maryland example, a $1,000,000 umbrella policy covers the $150,000 the auto policy didn’t. (4)
The National Association of Insurance Commissioners explains that a personal umbrella policy can pay liability and legal defense costs that exceed what your primary insurance policy will pay. (5)
Maryland’s regulator suggests asking your insurance company or agent what an umbrella would cost. (4) While you’re at it, ask what auto and home limits you’d need to carry underneath it.
4. Know what bankruptcy can’t touch
Here’s some good news. Federal bankruptcy law protects retirement funds held in tax-exempt accounts, including 401(k)-type plans and IRAs. (6)
For traditional and Roth IRAs, there’s a cap, adjusted to $1,711,975 as of April 1, 2025. Money rolled over from a 401(k) or similar workplace plan doesn’t count toward that cap. (6)
Your home, car, bank accounts and valuables are a different story; what you keep depends on the exemptions available to you.
Rice’s filing lists a Mercedes-Benz worth $53,800 and the Super Bowl ring, which court documents value at $160,000. (1)
If you’ve built up real savings and aren’t sure how exposed you are, a second set of eyes helps.
SmartAsset offers a free service that pairs you with up to three fiduciary financial advisors. They can help with tax savings, investment advice, Social Security strategies, and planning gaps you’d never see alone. And first appointments are typically free.
The questionnaire takes about 10 minutes and asks for a phone number near the end; you control whether and when you respond to anyone.
SmartAsset provides the match, not the advice, and it’s built for people with $100,000 or more in investments.
5. Don’t forget the house
Your homeowners policy carries liability coverage, too, for injuries or damage you cause to someone else. An umbrella sits on top of both your auto and homeowners policies. (4)
When you check one, check the other. The more you’ve saved, the more you have to protect.
Bottom line
Rice’s case is extreme: guilty pleas to two felony charges, a speeding Lamborghini and a pile of legal bills. (1) (2) Most of us will never be in that spot.
But the math underneath it applies to everyone. If a judgment is bigger than your coverage, the difference comes out of what you own.
Pulling out your policy and looking at three numbers only takes a few minutes. Raising them is likely to cost far less than paying a judgment yourself.
Sources: 1. KCTV5; 2. NBC 5 Dallas-Fort Worth; 3. Texas Transportation Code § 601.072; 4. Maryland Insurance Administration; 5. National Association of Insurance Commissioners; 6. Cornell Law School Legal Information Institute (11 U.S.C. § 522)
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