Information on Mississippi auto insurance law...
Beginning January 1, 2001, Mississippi auto insurance law requires that all drivers maintain liability insurance and carry a card in their vehicles at all times showing that you have liability insurance.
In Mississippi, the minimum liability requirements are $10,000 per person (limited to a single accident), $20,000 per accident for bodily injury, and $5,000 per accident for property damage (10/20/5).
Technically, you, as a Mississippi driver, can legally satisfy the requirements of Mississippi auto insurance law by:
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 part of Mississippi auto insurance 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.
In accordance with Mississippi auto insurance law, 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.
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 today's era of ever-rising medical costs and auto repair bills, the minimum requirements of 10/20/5 mandated by Mississippi auto insurance law 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.
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. This coverage, however, is not mandatory under Mississippi auto insurance law.
Collision coverage will pay for the cost of repairing damage to your car caused by an impact with a vehicle or object. This coverage is not mandatory under Mississippi auto insurance law.
Comprehensive coverage will reimburse you if your car is stolen. This coverage also is not mandatory under Mississippi auto insurance law.
Medical Payments coverage will pay the expenses of persons injured in an accident regardless of fault. If you have health insurance, medical payments coverage may not be necessary.
Although they are not required under Mississippi auto insurance law, 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.