Your car insurance will cover you in another state when traveling. In the event that you get into a car accident while driving out of state, most insurance companies will typically provide coverage to meet the minimum required by that state. Insurance companies refer to this as the broadening clause, which allows them to broaden your coverage if you get into an accident in a state that requires more coverage than your home state.
For example, if your insurance policy provides $10,000 in bodily injury liability coverage, and you get into an accident in a state where the minimum bodily injury requirement is $15,000, most insurance companies will cover the $5,000 difference. Similarly, if you get into an accident in a state that requires personal injury protection (PIP) when your home state does not, most insurance providers will broaden your coverage to provide PIP for that particular accident.
While your auto insurance policy will cover you when you travel between states, your coverage is unlikely to carry over once you move to another state. If you move to another state, you will be required to obtain that state’s minimum coverage requirements.
Even if your insurance company offers coverage in your new state, you will have to work out a new policy to ensure you are meeting minimum requirements. It’s a good idea to consult with several insurance companies to find the best quotes in your new state.
Many U.S. car insurance companies will automatically extend coverage to you if you travel to Canada, but not if you travel to Mexico. Mexican law requires drivers to be insured through a Mexican insurance company, so if you decide to travel there, you will likely need to purchase special coverage. Many larger U.S. insurance companies have partnerships in place, which allow them to provide coverage for drivers heading to Mexico, so you should check with your company for such an add-on before travelling.
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