What Happens when You Have a Car Accident Out of Your Home State?

Traveling across the country is a task that is as American as any other you could possibly do and even more so when you have to consider the car insurance implications associated with your drive. As Americans, we love laws and regulations which is exactly what takes over your life every time you sit behind the wheel of a car. Do you know what happens when you drive in another state in relation to your car insurance? Do you know if you are within the legal requirements? Read on and you will find out, it is easier than you think.

When it comes to car insurance you know that it is generally regulated on the state level instead of the federal level so state laws matter and do vary. When you drive across state lines from one state to another the state requirements may go up or down depending on what state you are going to and coming from. You will be required by the state in which you are driving to comply with all insurance requirements for that state, not the state in which you live. Rest assured, insurance companies have worked this out and you will be ok.

Even though each state has a different requirement for liability insurance coverage, all state insurance departments have agreed on policy language that remedies this. Based on the language that is in your insurance policy, which is basically the same in every state, your insurance limits will automatically match whatever the minimum requirements are for the state you are traveling in. This works for almost every coverage on your policy, meaning as you travel you gain peace of mind.

The most important coverage that this applies to is your liability minimums that are different in almost every state. Say you are traveling from your home where the minimum requirements are 10/20/10 for BIPD (Bodily Injury Property Damage) coverage. You arrive to vacation in a state that requires 25/50/25 coverage and you have an accident with another vehicle. For this accident your liability limits will match the state requirement of 25/50/25. This is not a permanent change, just for the time you are in the state.

These changes are also applicable to other state required coverage options like a state requirement that everyone carries Personal Injury Protection (PIP) coverage. If you do not have this medical coverage on your policy but you have an accident in a state that does, you will automatically get the coverage. This is one way that state insurance departments try to protect the insured drivers in every type of accident situation.