What will the insured's policy pay if involved in an auto accident in another state with higher liability limits?

When an insured individual has an auto accident in another state that has higher liability limits than those specified in their policy, the insurance company typically pays the higher limits. This is because auto insurance policies often include a provision called "out-of-state coverage." This provision is designed to ensure that the coverage meets or exceeds the minimum liability requirements of the state where the accident occurs.

In this scenario, if the insured is involved in an accident in a state with higher liability limits, the insurer adjusts the policy limits to comply with that state's requirements, thus covering the insured effectively under those higher limits. This helps protect the insured from potential financial exposure created by differing laws and regulations regarding liability insurance across state lines.

The other options do not apply in this context because they either suggest no payment, the same limits regardless of state law, or merely the state minimum limits which do not account for the higher state requirements impacting the liability coverage.