Does My Car Insurance Cover Me Out of State?

While most people understand the importance of car insurance when driving in their home state, many have never stopped to question what happens when driving across state lines. Are you covered in another state? What happens if you cause an accident? There are countless situations to look at when it comes to how car insurance works when driving across state lines, but if you know the basics, you’ll be better set up for success.

How does my car insurance protect me across state lines?

Car insurance follows the vehicles listed on the policy. If you have a California policy and get into an accident in Louisiana, your car insurance will cover you at the same limits it would in your home state.

Example: Tom is taking his family on a road trip to see the Grand Canyon. He currently has a car insurance policy in Virginia with liability limits of $250,000/$500,000/$100,000.^* While driving through New Mexico, he is involved in an accident that causes $65,000 worth of property damage. He currently has property damage coverage of $100,000 on his Virginia policy, so in this instance, his car insurance would fully cover the accident.

This is also a great example of how carrying quality liability limits will protect you and your family no matter where you may be traveling to.

What might be different about my car insurance policy when driving out of state?

The primary difference when traveling across state lines comes into play if you are currently carrying state minimum limits. Whenever you cross state lines, your car insurance will immediately reflect the state minimum liability limits of that state if they are higher. If they are lower, you will maintain your current liability limits that you carry on your policy.

Example: Susan is traveling across the country and is carrying the state minimum requirements in her home state of Ohio, so she has liability limits of $25,000/$50,000/$25,000. She’s traveling through Texas, so her car insurance limits will automatically increase to the Texas state minimums of $30,000/$60,000/$25,000. If Susan were to have an accident that caused $27,000 in bodily injury damage to one person, her car insurance would still cover the damage because her limits match the Texas state minimum of $30,000. However, if she’s in an accident that causes more than $30,000 in damage, she’ll be responsible for any costs above the minimum. It’s highly recommended to carry the highest liability limits that makes financial sense for your family, so you don’t have to stress about paying out of pocket when damages exceed your state’s minimum requirements.

How does my auto insurance protect me out of the country?

Typically, your U.S. policy will not cover you abroad. However, once you arrive at your destination, if you choose to rent a car, the rental car company should offer you car insurance in that country for the duration of the trip. That way you don’t have to risk potentially having an accident with no coverage.

One alternative option may be an endorsement on your policy for limited coverage in Mexico and Canada. This will vary by insurance company, so it’s always best to consult your agent to see what options are available.

When it comes down to it, if you are taking the appropriate precautions, your insurance will be there to cover you no matter where you are driving in the United States. So drive with the peace of mind that you are protected. And if you’re wondering what liability limits your policy offers, consult with your agent to better understand your coverage.

^*Car insurance policies have three liability limits, often displayed as three numbers like $250,000/$500,000/$100,000. The first number is the maximum insurance will pay for bodily injury to a single person after an accident. The second number is the maximum insurance will pay for bodily injuries for anyone involved in the accident not including you or the people in your household. The third number is the maximum amount insurance will pay for property damage you cause.