Auto Insurance Liability Laws Vary by State

Each state is responsible for passing its own auto insurance liability laws, which means that someone moving from one part of the country to another may need to put a higher level of protection in place to comply with local legislation. A driver who is visiting another state will be protected under his or her existing policy, but changing insurance is something that a new resident of a state will need to put on his or her “To Do” list. The existing policy may provide coverage for a limited time after a move, but a driver should contact his or her insurance provider to confirm that is the case and to find out how long this coverage will last.

A person who is relocating to a tort car insurance state may have to buy a policy with a higher level of liability coverage than someone who had been living in a no-fault one. In tort states, injured people have the right to sue to collect damages from the at-fault driver in an accident. The state sets a minimum level for bodily injury and property damage coverage for vehicles registered in the state.

Bodily injury liability insurance pays for medical bills and rehabilitation expenses for injuries sustained in the accident. Property damage coverage pays for repairs to the other driver’s vehicle, as well as any public property damaged in the accident, including fences, guard rails, sign posts and light stands.