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Automobile Insurance And You
Auto insurance protects you from financial losses such as vehicle repairs, medical bills, and legal services that could result from an auto accident. Although Mississippiʼs auto insurance rates compare favorably to other parts of the United States – where a yearʼs premium on a vehicle can
cost thousands of dollars – automobile insurance remains a very important purchase for most Mississippians. To get the best value for your money, you
must take responsibility for your auto insurance purchase.
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What The Law Requires
On February 23, 2000, Mississippi Gov. Ronnie Musgrove signed House Bill 621, establishing a compulsory automobile liability insurance system
for Mississippi. Beginning January 1, 2001, Mississippi law requires that all drivers maintain liability insurance and carry a card in their vehicles
at all times showing that you have liability insurance. As of July 1, 2013, pursuant to Senate Bill 2593 (2013 Regular Session) these insurance cards
may be produced either in paper or electronic formats, including cell phone images or other electronic devices.
- House Bill 621 Compulsory Automobile Liability Insurance (Mississippi Legislature Website)
- Bulletin 2000-3 Insurance Card Information (Issued by the Mississippi Insurance Department on April 10, 2000)
The Compulsory Liability Law is enforced by the Department of Public Safety – Safety Responsibility Division. The contact number for the Safety Responsibility Division is 601-987-1255.
On January 1, 2006, the minimum liability requirements increased to the following: $25,000 per person (limited to a single accident), $50,000 per
accident for bodily injury, and $25,000 per accident for property damage. You can legally satisfy these requirements by showing proof of liability insurance with bodily injury and property damage limits at least equal to the minimum requirement.
However, for the vast majority of people, automobile liability insurance is the most effective way to protect yourself financially in case of
an automobile accident. Maintaining it in your vehicle is now the law. State law says that a law enforcement officer cannot stop you solely to
check if you have an insurance card, but he or she can ask you for proof of insurance during a stop for any other statutory violation. The initial
penalty for failing to maintain an insurance card is $1,000 and suspension of driving privileges for one year or until the motor vehicle owner shows
proof of insurance.
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Liability: What You Need To Know
Liability coverage pays for damage you cause to other people and their property. It protects your assets and wages from seizure and litigation.
However, you should realize that in todayʼs era of ever-rising medical costs and auto repair bills, the state-mandated minimum requirements of
25/50/25 may not be sufficient. It is a good idea to consider purchasing liability coverage with higher limits. Remember, if you are at fault in
an accident, liability coverage will only pay up to your limits of insurance. You will be responsible for any damages over that amount. You will need
to purchase other kinds of coverage if you want the insurance company to pay for your medical bills and vehicle repairs.
For more information regarding automobile liability insurance, please see our Automobile Liability Insurance Page
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Know What Your Policy Covers
Many states with compulsory liability laws still have substantial numbers of uninsured motorists – those without any form of automobile insurance.
If an uninsured motorist hits your car, you may not be able to collect damages. However, if you purchase Uninsured/Underinsured Motorists (UM/UIM)
protection, you can make a claim for your injuries or damages through your own insurance company.
Other optional coverages that can be added to your auto insurance policy include collision, comprehensive, and medical payments components.
Collision coverage will pay for the cost of repairing damage to your car caused by an impact with a vehicle or object. Comprehensive coverage will
reimburse you if your car is stolen. Medical payments coverage will pay the expenses of persons injured in an accident regardless of fault. If your
car was financed, most often your lender will require you to carry collision and comprehensive coverage.
It is possible to cut your collision and comprehensive premiums by raising your deductibles. If you have an older car, you could opt to forego the
collision and comprehensive coverages altogether. Because the value of a car is based on its age and condition, these factors will be considered in the
amount you can recover in the event of a loss. If you have health insurance, medical payments coverage may not be necessary.
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Shopping For Auto Insurance
Ultimately, you will be making your decision on how much auto insurance to purchase based on what you can afford. Insurance companies write policies
in many different ways:
- directly to consumers via telephone or the Internet,
- through independent agents who represent more than one company,
- through captive agents who represent one company.
In order to find the best possible rate, we suggest you contact many different agents and companies. You may want to make a worksheet to help you
keep track of the auto insurance quotes you get from different companies. A good place to start is the Personal Auto Rate Comparison found on this page.
There you can find price comparisons of the largest auto insurers in Mississippi.
Also, it is a good idea to keep track of the discounts offered by each company. If you own two or more cars and have all your auto insurance with
one company, you are often eligible for a discount under a “multi-car” plan. Some companies offer discounts to farmers, good students, and others.
Often, a discount is offered for drivers over 55 who pass a special driving course.
Additional discounts are given on equipment in your car such as anti-lock brakes, anti-theft devices, air bags, and automatic seat belts. On average,
a five percent discount is given on such equipment. Taking a defensive driving course can reduce your liability and collision premiums. Young drivers who
take driver education also can get a similar discount.
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Keeping Costs Low Without Sacrificing Quality
There are many things you can do to keep the cost of automobile insurance as low as possible. Here are a few tips:
- Maintain a good driving record.
- Ask about discounts.
- Take the highest deductible you can afford if you opt to carry collision and comprehensive coverage.
- Before buying a vehicle, determine the cost of insuring it. High-performance vehicles mean higher insurance rates. If you are financing a vehicle,
chances are the lender will require you to take out comprehensive and collision insurance, which will drive your insurance costs up.
- If your car is paid-for and has a low market value, consider forgoing comprehensive and collision insurance. You may be paying more in premiums that
you would receive if your car was damaged or stolen.
- Generally, it is cheaper for young drivers to be included on their parentsʼ policy than to have one on their own. Young drivers also can get
good-student discounts with some companies.
- Pay your insurance in a timely manner. If you are cancelled for non-payment of premium, it will be harder to find a company willing to cover you.
- Review your policy periodically and update coverage accordingly.
While it is important to keep the cost of automobile insurance low, price should not be the only consideration when you are shopping for insurance.
As the saying goes, you get what you pay for. In addition to comparing prices, it is a good idea to compare the financial strength of a company,
its reputation for service, specific coverages, discounts and other benefits they offer.
A claims-paying ability rating – indicating how well prepared an insurance company is to pay out claims – is a good indicator of a companyʼs
financial strength. Some of the most well known rating companies are A.M. Best, Standard & Poorʼs, Duff & Phelps Credit Rating Co., Moodyʼs Investors
Service, and Weiss Ratings. Ratings from many of these services can be found at the public library or on the Internet. A list of major rating companies,
their phone numbers, and their Internet addresses are located on our Insurance Company Rating Services Page.
(MID is unable to recommend or provide ratings of individual companies.)
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If You Have A Claim
If you want to know the claims-paying ability rating of a particular insurance company, ask an agent or company representative. Compare how the company
stacks up to the other rated companies. If you have trouble getting the information from the company itself, you may want to think twice about buying
from them.
If you are involved in an accident and have a claim, there are certain things that you should do:
- Call the police – even if it is an accident where the police do not normally respond.
- Get the name, address, registration number, insurance company name and operatorʼs license number of all vehicles and operators involved.
- Note the time, date, location, road conditions, make and year of vehicles involved, apparent damage and injuries, and your version of what happened.
Make a diagram of the accident scene.
- Notify your insurance agent or company as soon as possible.
- Obtain the names and addresses of all witnesses and individuals involved in the accident.
- Take reasonable steps to protect your property from further damage.
If you have a loss, notify your company promptly. Make copies of the completed forms to keep for yourself. After the company is informed of your claim,
they should send you any needed forms to verify your claim. The claim should be paid promptly after the company has received adequate proof of loss.
If the company rejects your claim or pays only part of it, you should be provided an explanation in writing. If you believe your insurer has refused
to pay all of part of a valid claim, you should first contact them. If you donʼt get a prompt, satisfactory response, contact MID.
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Personal Auto Rate Comparison
Demographics used for this comparison:
| Risk 1: |
25 year old, Single Male, clean record, driving a 2 year old, Symbol 13 pick-up truck.
|
| Risk 2: |
30 year old Married couple, clean records, Husband drives a 2 year old Symbol 14 pick-up truck and Wife drives a 2 year old Symbol 12 sedan. |
| Limits: |
25/50/25 Liability Limit, $500 deductible for Collision, $250 for Comprehensive, $1,000 for Medical Payments,
25/50/25 Limit for Uninsured Motorists, $1,000 for Medical Payments, 25/50/25 Limit for Uninsured Motorists. |
| Company |
Risk 1: |
Risk 2: |
| Allstate |
$696.40 |
$998.64 |
| GEICO |
$697.50 |
$800.70 |
| Mountain Laurel* |
$610.00 |
$821.00 |
| Nationwide |
$513.70 |
$738.35 |
| Progressive Gulf* |
$536.00 |
$760.00 |
| State Farm |
$501.86 |
$829.27 |
These limits are for a 6 month period. * denotes Progressive companies.
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Getting Assistance From The Mississippi Insurance Department (MID)
If we can be of assistance, please see the Request Assistance Page for information on how to contact us.
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