What protection does Lillian's personal auto policy provide since she only meets her state's minimum insurance requirements?

In the context of Lillian's personal auto policy and her compliance with her state's minimum insurance requirements, it is important to understand how auto insurance operates when crossing state lines or when dealing with different coverage requirements. When she is driving in a state with higher insurance requirements, her existing coverage will typically adjust to meet the minimum limits of the other state. This is known as the "out-of-state coverage" provision.

This means that if Lillian is involved in an accident in a state that requires higher liability limits than her home state, her policy would provide coverage that meets the other state's minimum requirements, without requiring any adjustments on her part. The insurance company will cover the necessary amounts according to the higher limits mandated by the other state.

This mechanism is designed to ensure that drivers are adequately protected while they are traveling outside their home state, encouraging safe driving practices. Thus, even though she may only have the minimum coverage in her own state, her policy is flexible enough to adapt to the requirements of other states where she might drive, ensuring she remains compliant with local laws.