Auto Insurance

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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.

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:

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. Many companies offer discounts for bundling auto and home policies.

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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Tips for Keeping Costs Low

There are many things you can do to keep the cost of automobile insurance as low as possible. Here are a few tips:

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.

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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:

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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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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