What Happens to Coverage Limits in an Out-of-State Accident?
Traveling? Discover how your auto insurance policy adapts to protect you during an out-of-state car accident.
Car insurance policies are designed to provide protection even when traveling outside of your home state. Understanding how your existing policy functions across state lines can provide peace of mind, as your coverage typically extends its reach to cover incidents that may occur beyond your usual driving area.
Understanding Out-of-State Liability Coverage
Most standard auto insurance policies contain a “broadening coverage” or “out-of-state coverage” provision. This feature automatically adjusts your liability limits to comply with the minimum financial responsibility laws of the state where an accident occurs, provided those limits are higher than your home state’s requirements. For example, if your home state requires $25,000 in bodily injury liability per person, but the state you are visiting requires $30,000, your policy will automatically increase to meet the $30,000 minimum for that incident.
Financial responsibility laws are state-specific regulations that require drivers to demonstrate they can cover damages they might cause in an accident. These laws vary significantly from one state to another, dictating minimum amounts for bodily injury liability and property damage liability. Bodily injury liability covers medical expenses and lost wages for others if you are at fault in an accident, while property damage liability covers damage to another person’s vehicle or property.
It is important to understand that while your limits may increase to meet higher state minimums, they will not automatically exceed your purchased policy limits if the accident state’s minimums are lower. Your policy will always provide at least the coverage you bought.
How Other Coverages Apply Across State Lines
Beyond liability, other common types of auto insurance coverage also typically extend across state lines. Collision and comprehensive coverages, which protect against physical damage to your own vehicle, generally follow the vehicle regardless of the state it is in. Collision coverage helps pay for repairs if your car hits another vehicle or object, while comprehensive coverage addresses damage from events like theft, vandalism, or natural disasters.
Uninsured/Underinsured Motorist (UM/UIM) coverage usually extends to other states, protecting you if you are involved in an accident with a driver who has no insurance or insufficient coverage. This coverage can help with your medical bills and property damage when the at-fault driver cannot pay.
Medical Payments (MedPay) and Personal Injury Protection (PIP) are coverages designed to help with medical expenses resulting from an accident. MedPay often applies out-of-state and covers medical bills for you and your passengers, regardless of who was at fault. Personal Injury Protection (PIP) is primarily associated with “no-fault” states, where your own insurance covers your medical expenses and lost wages regardless of fault. In some instances, your home state’s policy may extend PIP coverage if you are in an accident in a no-fault state that requires it.
Actions Following an Out-of-State Accident
After an out-of-state accident, prioritizing safety is the immediate concern, which includes checking for injuries to yourself and any passengers. If anyone is injured or there is significant vehicle damage, contacting law enforcement is an important step. A police report can serve as valuable documentation for your insurance claim.
Exchanging information with all parties involved is also important, including names, contact details, insurance information, and vehicle details. Documenting the scene thoroughly by taking photos or videos of vehicle damage, road conditions, and any visible injuries can provide helpful evidence. Gathering contact information from any witnesses can also be beneficial.
Promptly notifying your insurance company about the accident is a necessary step, regardless of where it occurred. You should be prepared to provide them with the date, time, and location of the accident, along with details about the parties involved. Your insurer will guide you through the claims process, taking into account the specific laws of the state where the accident happened.
Seeking medical attention promptly for any injuries, even those that seem minor, is advisable, as some conditions may not show immediate symptoms. Retaining all accident-related documentation, such as medical records and repair estimates, is important for the claims process. Your insurance company can assist with finding approved repair shops and coordinating the necessary services, even when you are far from home.