autogrowth set higher than available disk
SQL server would handle this aborting your transaction and throwing the following error:



I got this message from a test where I designed a scenario close enough to what you described:



I placed the database MyDB in a small disk with 100MB in size. Inserts in the table dbo.TextTable worked fine until the file needed to grow (500MB) in order to acomodate more data, but failed due to the lack of space in the disk.

Microsoft says that


  The autogrow setting cannot grow the database size beyond the limits
  of the available disk space on the drives for which files are defined.
  Therefore, if you rely on the autogrow functionality to size your
  databases, you must still independently check your available hard disk
  space. The autogrow setting is also limited by the MAXSIZE parameter
  you select for each file. To reduce the possibility of running out of
  space, you can monitor the Performance Monitor counter SQL Server:
  Databases Object :Data File(s) Size (KB) and set up an alert for when
  the database reaches a certain size.