Under Out of State coverage, which extension covers additional benefits required by the jurisdiction such as no fault or PIP?

• 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 for no-fault benefits only
• D. It excludes payments for bodily injury in out-of-state use

Answer: (B)

Out-of-State coverage is meant to meet the requirements of the state where the vehicle is being used, ensuring that any mandated benefits—like no-fault coverage or personal injury protection (PIP)—are provided for out-of-state use. The best option states that this extension adds benefits required by the jurisdiction for out-of-state vehicles, including no-fault or mandatory PIP. That directly reflects the purpose of the extension: to satisfy varying state mandates when you drive outside your home state.

Raising limits to comply with laws is about affordability or enforceability of limits, not about providing the mandated no-fault or PIP benefits. Having no-fault benefits only is too narrow because the extension can cover other mandated protections beyond just no-fault. Excluding payments for bodily injury would contradict the purpose of ensuring required benefits are available when the vehicle is used out of state.