Mississippi Car Insurance Requirements

The Rundown:

• Mississippi car insurance laws require drives to have at least 25/50/25 in bodily injury and property damage liability coverage
• Drivers can show proof of financial responsibility in other ways if they don’t want car insurance
• Drivers face fines, a driver’s license suspension, and misdemeanor charges if they don’t have insurance or proof of financial responsibility

When it comes to car insurance, every state is different. Although a few states don’t require car insurance, most mandate at least a minimum amount of coverage.

Mississippi auto insurance laws allow drivers to carry a minimum amount of liability car insurance or show they’re financially capable of paying claims themselves.

Drivers who don’t have car insurance and can’t show proof of financial responsibility face fines, a suspended license, and a misdemeanor charge. 

Although auto insurance quotes in Mississippi are higher than the national average, higher rates are a better alternative than penalties for being uninsured.

Keep reading to learn more about Mississippi insurance law and determine what coverages fit your needs.

What car insurance coverages does Mississippi require?

Like most states, Mississippi requires drivers to have car insurance. However, Mississippi’s minimum requirements are low and may not adequately cover you.

Required auto insurance coverages in Mississippi include:

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

Liability coverage pays for damages to others and doesn’t include any protection for you and your vehicle. The bodily injury portion of your coverage pays for medical bills for others, and the property damage pays for other damages, such as car or fence repairs. 

Your insurance only pays to the policy limits, leaving you paying for the remaining damages out of pocket in a severe accident. 

For example, if you cause an accident and the other driver sustains serious injuries, costs quickly exhaust your $25,000 bodily injury limit. Or, if you hit an expensive vehicle, $25,000 in property damage may not be enough to cover repairs.

The injured party can also sue you for additional costs not covered by your insurance.

Consider increasing your limits to avoid significant out-of-pocket expenses. Though you’ll pay higher rates, you won’t have to pay substantial costs.

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Are there alternatives to car insurance in Mississippi?

Drivers who don’t want to carry Mississippi car insurance have another option: They have the option to forgo insurance after proving they can pay for damages up to the minimum policy limit.

For example, drivers must show $75,000 in assets that can pay for damages if needed. 

Proof of financial responsibility options include:

• Surety bond. A surety company issues bonds and covers costs up to the bond’s limit. Then, you’ll pay back the company the amount used to pay for damages.
• Real estate bond. Drivers show they have real estate holdings worth enough to cover the minimum requirements. In addition, drivers must show $150,000 in equity or stock.
• Certificate of cash. This document shows you have money equal to at least the minimum amount of required insurance deposited with the Mississippi state treasurer. This money is unavailable to you unless used to pay for damages.

Remember that you won’t have to pay for damages up to your policy limits with a car insurance policy. With a financial responsibility form, you’ll pay for all damages yourself.

While you won’t have car insurance costs, you’ll probably lose money in the long run by paying out of pocket for all damages.

What happens if you don’t have car insurance in Mississippi?

According to the Insurance Information Institute, about 30% of Mississippi drivers are uninsured, the highest rate in the nation. Mississippi drivers without insurance open themselves up to serious penalties.

Penalties for failing to have insurance in Mississippi include:

• Fines up to $1,000
• Driver’s license suspension for up to one year
• Misdemeanor charge

For the first offense, drivers can get a fine of up to $1,000 and a year-long license suspension. However, the court can lift your suspension and reduce your fine to $100 if you acquire insurance within a certain time frame.

The court can also require you to obtain SR-22 coverage, which is a form your insurance company gives the state showing you carry the minimum amount of car insurance. Though the form is relatively inexpensive, an SR-22 increases auto insurance rates, so Mississippi auto insurance quotes with SR-22 can be double standard rates.

Insurance rates are much higher because insurers view you as a risky driver since you drove without coverage. 

Is driving without insurance a felony? No, but it is a misdemeanor in Mississippi. Although most car insurance infractions don’t appear on your criminal record, breaking the Mississippi auto insurance law is a misdemeanor.

Carry at least the mandatory required Mississippi car insurance to avoid higher rates, fines, and a criminal record.

If you have car insurance or proof of financial responsibility but don’t have the forms with you, the court typically allows you to show evidence to avoid penalties.

What other car insurance coverages should you consider?

While Mississippi only requires liability insurance, there are other coverages you should consider adding to your policy to be fully protected.

Additional car insurance coverages include:

• Collision. Collision coverage pays for damages to your vehicle if you’re in an accident.
• Comprehensive. This coverage pays for damage to your vehicle unrelated to an accident, such as fire, theft, vandalism, and hail.
• GAP. GAP coverage pays for the difference between what you owe on your car and its worth.
• Uninsured motorist. If an uninsured driver hits you, your uninsured motorist coverage kicks in to pay for damages.
• Underinsured motorist. Like uninsured motorist coverage, underinsured motorist coverage pays for damages if a driver with inadequate coverage hits you.
• Medical payment and personal injury protection. These coverages are very similar, paying for medical and related costs, such as doctor bills, lost wages, and child care.
• Rental car. Rental car coverage pays for a vehicle for you to drive while your vehicle is in the shop for a covered claim.
• Roadside assistance. This coverage provides service if you have car trouble, including jump starts, tire changes, and fuel delivery.

How much insurance coverage do I need? The coverage you need depends on your vehicle and financial situation.

For example, if you have an older car and can afford to make repairs yourself, you could skip collision and comprehensive coverages.

However, experts recommend full coverage insurance, which combines your state’s mandatory coverages with collision and comprehensive insurance. Although full coverage is more expensive, it provides the most protection.

If you have a car loan or lease, you may not have an option in car insurance coverages. Typically, lenders require collision, comprehensive, and GAP coverages in addition to your state’s mandatory coverage.

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Mississippi Car Insurance: The Bottom Line

Mississippi requires drivers to carry at least 25/50/25 in liability coverage. If drivers don’t want car insurance, they can show financial responsibility through a surety bond, real estate bond, or certificate of cash.

While Mississippi’s required limits are low, it pays at least a portion of damages. However, drivers who choose to carry bonds or a certificate of cash must pay for all damages out of pocket.

Failing to meet Mississippi requirements leads to fines, a driver’s license suspension, and a misdemeanor on your criminal record.

Mississippi drivers should consider increasing limits and adding coverages to be better protected. Although rates are higher, so is coverage, leading to fewer out-of-pocket expenses.