Under Out of State coverage, which extension provides higher limits to comply with the laws where the auto is used, excluding laws governing motor carriers of passengers or property?

Under Out of State coverage, which extension provides higher limits to comply with the laws where the auto is used, excluding laws governing motor carriers of passengers or property?

• A. Higher limits than policy limits to comply with the laws where the auto is used, excluding the laws governing motor carriers of passengers or property
• B. Additional benefits, such as no fault or mandatory personal injury protection, required of out-of-state vehicles by the jurisdiction where the covered auto is being used
• C. Coverage excludes theft
• D. It provides medical payments for out-of-state drivers

Answer: (A)

The key idea is that some auto policies include an Out-of-State Coverage extension that automatically raises liability limits to meet the minimum requirements of the state where the vehicle is being driven. This helps ensure you’re compliant with those laws without needing to adjust your policy manually. It focuses specifically on increasing the limits, not on adding no-fault or PIP, theft exclusions, or medical payments for out-of-state drivers. So, the extension that provides higher limits than your policy’s limits to comply with the laws where the auto is used (while excluding motor carrier laws) is the correct one. The other options describe different features—additional required coverages like no-fault/PIP, or coverage changes unrelated to raising liability limits, or unrelated coverages such as medical payments or theft—so they don’t address the stated need.

The key idea is that some auto policies include an Out-of-State Coverage extension that automatically raises liability limits to meet the minimum requirements of the state where the vehicle is being driven. This helps ensure you’re compliant with those laws without needing to adjust your policy manually. It focuses specifically on increasing the limits, not on adding no-fault or PIP, theft exclusions, or medical payments for out-of-state drivers.

So, the extension that provides higher limits than your policy’s limits to comply with the laws where the auto is used (while excluding motor carrier laws) is the correct one. The other options describe different features—additional required coverages like no-fault/PIP, or coverage changes unrelated to raising liability limits, or unrelated coverages such as medical payments or theft—so they don’t address the stated need.