How does the PAP handle coverage for a vehicle driven in another state with higher liability limits?

The correct answer reflects how the Personal Auto Policy (PAP) adapts to varying state laws regarding liability coverage. When a vehicle is driven in another state that requires higher liability limits than those established in the insured's home state, the PAP will automatically adjust the coverage to meet those higher requirements.

This provision is in place to ensure that the insured is compliant with the laws of the state in which they are driving. It protects the policyholder from potential legal issues and ensures that they have adequate coverage in situations where they may be held liable for damages or injuries.

This feature of the PAP provides peace of mind for drivers who travel, knowing that they will not unintentionally be driving without the necessary legal coverage simply due to state differences in insurance requirements. Thus, the PAP is designed to provide broader coverage as needed, effectively enhancing the insured’s protection while traveling.