Mississippi residents are encouraged to carefully consider how much auto insurance they need and how much they can afford to pay, as an insurance policy is a legal contract. If you let the contract lapse, it could cause your future insurance rates to go up significantly. While Mississippi only requires drivers to purchase minimum liability coverage, and there is cheap liability car insurance in Mississippi, many drivers feel it is in their best interest to purchase additional coverage beyond the state requirements. Additional coverage in an auto policy could include: uninsured/underinsured motorist coverage, collision coverage, comprehensive coverage, and medical payments, according to the Mississippi Consumer’s Guide to Auto Insurance. It helps to familiarize oneself with insurance terminology as you examine your options. Here we’ll explore some things consumers should think about when it comes to auto insurance.

Know Your Rates

How much you pay for auto insurance is determined in part by how much coverage you want (the more coverage you purchase, the higher your premium) and the deductible you select (the higher your deductible, the lower your premium). Research the average cost of car insurance in Mississippi so you’ll know where to begin. Also, the insurance company must consider all of the risk factors associated with covering you and the other licensed drivers in your household. The base rate that is used to evaluate all drivers is then adjusted to take into account the following factors:

• Age. Statistics show that drivers under the age of 25 are involved in more accidents than those aged between 25 and 65. For this reason, drivers under 25 years old are considered a higher risk, so insurance companies will charge households with younger drivers more for insurance. In addition, those who are older than 65 years of age are considered greater risks because their reaction time and overall physical ability tends to slow down.
• Gender. Statistical evidence shows men have more accidents than women. Men under the age of 25 are particularly more prone to accidents than women in the same age group, so male drivers typically must pay higher insurance rates than female drivers.
• Driving record and claims history. If you have had multiple accidents, tickets, and insurance claims, you are automatically considered a riskier driver to insure. For that reason, those who don’t have clean driving records will see higher insurance rates. Accidents remain on your driving record for a period of years before your driving history is wiped clean again. Safer drivers, on the other hand, will enjoy the lowest auto insurance rates in Mississippi.
• Marital status. Statistics prove that married couples tend to have far fewer accidents than those who are unmarried, so married couples may be offered a lower insurance rate when shopping around.
• Location. As a general rule, urban drivers pay more for auto insurance than those in small towns or rural areas because the increased traffic and higher crime makes their vehicles more likely to get into an accident or be stolen or vandalized.
• Make, model, and year of the vehicle. The general rule of thumb is that the more expensive and high-performance the vehicle, the more drivers will have to pay to insure them, according to Mississippi’s auto insurance guide. This is because they are more expensive to repair after accidents, not to mention more likely to be stolen. Insurance companies also point out that red, flashy sports cars are more likely to be pulled over for speeding and other violations by police.
• Credit history. Your credit history may play a part in the rates you receive. Those with poor credit history may not qualify for affordable auto insurance in Mississippi.
• Annual miles driven/use of vehicle. If you don’t put many miles on your car each year, you pose less of a risk and therefore pay a lower premium. Also, people who use their car for leisure will generally pay a lower premium than those who use their car for business and long-distance commuting to work day in and day out.

Lower Your Rates

Mississippi’s insurance department recommends shopping around at a number of different insurance companies to compare auto insurance rates in Mississippi. When shopping around, speak with an insurance agent and find out exactly what your insurance plan will cover for the price you are paying so that you receive the best price for the best coverage, as opposed to simply settling for a plan that is cheap, but doesn’t offer much. Don’t let price be the only deciding factor, however. You also want to consider a company’s financial standing, the quality of its service, and available discounts, according to the Mississippi auto insurance guide. This way, you can receive the best auto insurance rates in Mississippi.

Inquire about discounts that a company may offer but not advertise, such as discounts for young drivers with good grades, drivers who have completed a driver’s education course, discounts for farmers, and good-driver discounts. Older drivers in Mississippi (55 and older) can save money on insurance right away by taking a DPS-approved collision prevention course, under the provisions of state code 63-15-46. Other ways to get a lower auto insurance rate include: bundling your auto and home insurance under one provider, insuring multiple vehicles under one policy, and installing safety and anti-theft devices, Mississippi’s auto insurance guide points out.

Longtime customers of an insurance company may be able to call in and request a lower rate after many years of faithfully paying their premiums on time. Also, insurance companies often give you the option to pay your entire premium all at once or pay it in installments; those who pay all at once may pay less overall.

In addition, pay close attention to your other insurance plans. Some plans, such as medical insurance, can overlap in coverage areas with your auto insurance plans, so you can opt out of paying for coverage in areas where you are already insured. By upping your deductible to the highest amount you can reasonably afford, you can receive a lower rate as well. Finally, if your vehicle is paid for or has a low market value, you may want to re-evaluate the cost-effectiveness of maintaining damage coverage on it, the Mississippi auto insurance guide notes.

Remember to make sure that the company is permitted to do business in Mississippi. If you are suspicious about any insurance company, call the Mississippi Insurance Department’s toll-free consumer line at 800-562-2957 to verify if any actions have been taken against that company.

Picking an Insurance Agent/Broker

Insurance agents with insurance companies aim to sell policies for commission. Insurance brokers, on the other hand, do not represent a company. Instead, they work with individual clients, assessing their clients’ needs and finding different insurance options to fit those needs. Like agents, however, they also receive a commission for the sales they make from different insurance companies. In Mississippi, you can buy insurance through captive agents, who work exclusively for one insurance company; independent agents, who represent multiple companies; and direct writers, who reach out to you directly by phone or over the Internet, according to the Mississippi auto insurance guide.

Whether you use an agent, broker, or direct writer, make sure that they are licensed with the Mississippi Insurance Department. The Department’s website allows consumers to search for companies and individuals to see if they are licensed. In addition, you can request information from the Mississippi Insurance Department about how many complaints have been filed against a particular agent or broker. The Department can also tell you how many times they have faced disciplinary actions.

If you have had issues with an insurance agent or company that you haven’t been able to resolve with the company itself, you can request assistance by calling the consumer help line at 800-562-2957, or 601-359-2453 in the Jackson area. You can also file a complaint online or by mail using the agent complaint form or company complaints form. Mail complaints to:

Mississippi Insurance Department
P.O. Box 79
Jackson, MS 39205

You can request information on why your claim has been denied, why your insurer cancelled your policy, or other complaints. The Department will assign your case to an investigator, who will review the matter and take steps to resolve it. Allow 20 working days for the investigator to contact the company that is the source of the complaint. The Department will notify the complainant of their findings in writing.

After an Accident

Accidents happen, even to the most responsible drivers. If you have been involved in a wreck, immediately notify local law enforcement. If you or someone else is seriously injured, you must request emergency medical services at that time. Drivers should stay at the scene of the accident until released by a police officer. To expedite procedures, be prepared to give a thorough account of the events leading up to the collision to responding law enforcement members, and also take down information such as the names of the police officers and witnesses you spoke with for your own accident report.

Mississippi law requires you to provide information, including your name, address, and registration number, to the other driver involved in the wreck, and to show them your driver’s license, if requested. However, you should never admit fault in any accident, according to the Mississippi Insurance Department.

In addition, you must also report the incident to your insurance company as soon as possible, closely following your particular company’s procedures for filing a claim. If your collision involved another driver, obtain their name, address, phone number, insurance information, driver’s license number, and the make and model of the car they were driving during the collision, even if the driver has no car insurance in Mississippi. Taking photos or video of the damage to your vehicle, even with your cell phone, could be useful, according to the Mississippi Insurance Department. You should also be prepared to report the extent of the damage to both cars, how the accident happened, what occurred during the accident, and the names and contact information of any witnesses at the scene. Any police report filed must also be copied and sent to your insurance company.

When all of your information has been received, your insurance company will investigate and pay your claim according to the terms of your insurance policy. If your claim is delayed, the insurance company must notify you every 30 days until it is processed. In the event that your claim is denied, your insurance company will notify you in writing.

Your insurance company may also seek subrogation, which typically happens when someone else was at fault for an accident you were in. Your insurance will cover the costs of any medical or repair bills you had, but your insurance will then reach out to the at-fault driver’s insurance company for compensation. During this process, you should provide your insurance company with full cooperation to ensure that this process goes smoothly. If you intend to settle with the at-fault driver or their insurance company, be sure to notify your insurance company.

Insurance for High-Risk Drivers

Your driving record may prevent you from receiving the insurance coverage, especially if you have a lengthy history of accidents, tickets, or drunk driving. However, the state of Mississippi makes it possible for every driver to find insurance opportunities by offering the Mississippi Automobile Insurance Plan. This plan specifically covers drivers in Mississippi who cannot find coverage in the voluntary market due to their driving records. In order to qualify, be sure that you meet the following criteria:

• Possess a valid Mississippi driver’s license.
• Possess a vehicle registered in Mississippi
• Show that you have not been able to find coverage in the voluntary market

You may also be required by the state to have your insurance company file an SR-22 form to prove that you have maintained minimum liability coverage. The SR-22 form is required in Mississippi to reinstate a license that has been suspended or revoked for failing to pay an accident judgment, getting caught driving without insurance, or after driving under the influence, according to Safe Auto.

Additional Help

The Mississippi Insurance Department offers assistance to anyone shopping for insurance. They will answer inquiries related to insurance, look into complaints with specific agencies, agents, or brokers, educate consumers on insurance law and procedures, and enforce insurance law on the consumer’s behalf if needed. You can contact them at 800-562-2957 or 601-359-3569.

Online resources include:

• Mississippi Automobile Insurance Consumer’s Guide
• Auto Rate Comparison
• After an Accident Checklist