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A New York insured drives her NY-policied vehicle to Pennsylvania, where state minimums are higher than NY's 25/50/10. She causes an accident in Pennsylvania. How does her NY personal auto policy respond with respect to liability limits?

ACoverage drops to zero outside New York — NY policies provide no out-of-state liability
The policy's out-of-state extension automatically increases liability limits to satisfy the host state's compulsory minimum if higher than NY's
CCoverage applies only at the NY 25/50/10 limits regardless of where the accident occurs; the insured is personally liable for any shortfall
DThe insured must purchase a separate non-resident policy before crossing state lines

Why this is the answer

NY auto policies approved by DFS include a standard out-of-state coverage extension (mirroring the ISO PAP 'Out-of-State Coverage' provision but conformed to NY mandatory coverages). If the insured drives into a state with higher compulsory liability minimums than NY's 25/50/10, the policy automatically provides at least those higher limits while the vehicle is operated there. The policy also conforms to any compulsory no-fault or UM requirement of the host state if NY's coverage is lower. This is what allows a NY insured to drive lawfully through neighboring states without buying a separate non-resident policy. Options A, C, and D misstate the standard NY form.

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