Auto Insurance In Mississippi: Minimum Coverage Requirements Explained

Mississippi requires a minimum of 25/50/25 of bodily injury and property damage coverage. This means that drivers need to carry $25,000 of bodily injury liability per person and a total of $50,000 of bodily injury liability coverage per accident. Additionally, in Mississippi, your liability insurance coverage for property damage must be at least $25,000 per accident. The average yearly rate of auto insurance is around $38.37/month, with the cheapest option being State Farm at $25 per month.

Minimum coverage requirements

Mississippi mandates that drivers carry minimum auto insurance requirements. The minimum coverage liability limits are 25/50/25. This means that drivers are required to carry $25,000 bodily injury liability per person, $50,000 bodily injury liability per accident, and $25,000 property damage liability per accident. Mississippi follows the fault-based system, which means that the driver deemed at fault in an accident bears the financial liability for damages.

Mississippi's auto insurance law allows a driver to place a bond with a state-licensed company for the full amount of required coverage instead of purchasing insurance. Drivers can also post cash or securities in the total amount required for liability insurance with the State Treasurer. However, due to the high requirements, these options are rarely used.

Mississippi does not require drivers to carry collision or comprehensive insurance as part of the state's minimum coverage. Nevertheless, if you lease or finance a vehicle, lenders often require both coverages to safeguard their investment in the event of damage or loss. In Mississippi, you should consider collision and comprehensive coverage if you lease or finance your car or if you simply want to protect your asset against potential risks.

Mississippi takes car insurance seriously, and there are penalties for driving without insurance in the state. If you are caught driving without insurance in Mississippi, you may face a fine of up to $1,000, suspension of driving privileges for up to a year, and a possible misdemeanor conviction.

Average cost of minimum coverage

The minimum auto insurance coverage in Mississippi includes:

• $25,000 for bodily injury liability per person
• $50,000 for bodily injury liability per accident
• $25,000 for property damage liability per accident

The average cost of minimum coverage auto insurance in Mississippi is $477 per year or $40 per month. This rate is lower than the national average for minimum coverage, which is approximately $573 per year or $48 per month. Mississippi's affordable rates can be attributed to various factors, such as lower population density, which often results in fewer accidents and claims. Additionally, the cost of repairs and healthcare is generally lower in Mississippi compared to other states, leading to reduced insurance payouts and more economical premiums for residents.

The cost of minimum coverage auto insurance in Mississippi varies depending on age, with drivers aged 22 to 29 typically facing the highest premiums. For instance, the average cost of minimum coverage for a 22-year-old in Mississippi is $600 per year or $50 per month. On the other hand, State Farm and Direct General Insurance offer the cheapest minimum coverage policies in the state, with annual rates of $299 and $306, respectively.

It's worth noting that Mississippi mandates that drivers carry minimum auto insurance requirements. The state follows a fault-based system, meaning that the driver deemed responsible for an accident bears the financial liability for any damages incurred. As such, maintaining at least the state-mandated minimum coverage is essential to comply with the law and avoid penalties for driving without insurance.

Cheapest companies for minimum coverage

Mississippi requires drivers to have a minimum amount of liability insurance to legally drive in the state. The minimum liability requirements for auto insurance in Mississippi are often written as 25/50/25. This means:

• $25,000 bodily injury liability per person
• $50,000 bodily injury liability per accident
• $25,000 property damage liability per accident

State Farm and USAA are among the cheapest car insurance providers in Mississippi, according to Bankrate's analysis. State Farm offers the cheapest minimum coverage car insurance in Mississippi at just $29 per month. Direct General Insurance is another low-cost option, with an average annual premium of $306, or $26 per month.

Add-on coverages

Mississippi mandates that drivers carry minimum auto insurance. However, there are several add-on coverages that drivers can opt for to enhance their policy and safeguard against various incidents. Here are some of the optional coverages available:

Comprehensive Coverage

This type of coverage is used to repair your vehicle when physical damage occurs from non-collision-related incidents, such as theft, fire, vandalism, glass breakage, or contact with animals. It is highly recommended, especially if you want to protect your vehicle from non-collision-related damages. Comprehensive insurance will cover the repairs or replacement of your car if it is damaged or destroyed by something other than a collision.

Collision Coverage

Collision coverage is used to repair your vehicle when physical damage occurs from a collision with another vehicle or object. It is subject to a deductible, and in the event of a total loss, most policies will pay the depreciated value of your vehicle. Collision coverage is often required if you are financing or leasing a vehicle.

Uninsured/Underinsured Motorist Coverage

This protects you in the event of an accident where the other party is at fault and does not have insurance or does not have sufficient insurance. It will cover your medical expenses, lost wages, and repair costs. It is a wise choice, especially in a state like Mississippi, which has a high rate of uninsured motorists.

Medical Payments Coverage

Medical payments coverage will pay the medical expenses of persons injured in an accident, regardless of who is at fault. It acts as a cheap form of health insurance and can be useful even if you have separate health insurance to cover your accident-related expenses.

Rental Car Reimbursement

If your vehicle is being repaired after a covered event, this coverage will pay for the cost of a rental car or other transportation expenses. It ensures that you can stay mobile while your car is being fixed.

Accident Forgiveness

With this coverage, your insurance rates will not increase following your first at-fault accident. This can provide peace of mind and help you avoid financial penalties for being involved in an accident.

Roadside Assistance

Roadside assistance coverage can be a valuable addition to your policy, providing services such as fuel delivery, lockout service, jump-starts, and more. It offers assistance when your car breaks down and can be a lifesaver in emergency situations.

These are some of the key add-on coverages available in Mississippi. By including these options in your policy, you can enhance your protection and have greater peace of mind while on the road.

Penalties for driving without insurance

In Mississippi, driving without insurance is considered a misdemeanor. The penalties for driving without insurance in Mississippi are as follows:

• First Offense: Driving without insurance in Mississippi can result in a fine of up to $1,000 and a suspension of your driver's license for one year or until you can show proof of insurance. The fine can be reduced to $100 if proof of insurance is provided before the hearing. If you can prove that you had insurance at the time, the fine, court costs, and suspension will be waived.
• Repeat Offenses: Penalties for subsequent offenses may be more severe, with the possibility of heftier fines and harsher consequences.
• Vehicle Impoundment: Your vehicle may be impounded, and you will have to pay fees to get it back.
• Suspension of Vehicle Registration: You may lose the right to drive your car until you obtain proper insurance.
• License Suspension: Your driver's license may be suspended, and you will need to pay a reinstatement fee to get it back.
• SR-22 Requirement: You may be required to file an SR-22 form, which is a certification of financial responsibility, and maintain it for three years.
• Jail Time: If you are involved in an accident while uninsured, you could face up to six months in jail.
• Increased Insurance Costs: Driving without insurance can also result in higher insurance premiums when you do obtain coverage.

It is important to note that Mississippi has a fault-based insurance system, which means that the at-fault driver in an accident is responsible for compensating others for injuries and property damage. Therefore, driving without insurance can lead to significant financial consequences if you are found at fault in an accident.

Frequently asked questions