The amount of car insurance you need in Mississippi is a complicated question and personal decision. There are several Mississippi car insurance requirements determined by state laws and your lender which will help guide your decision, however, these limits will likely be too low for most drivers. We walk through the various Mississippi car insurance requirements and help you determine the appropriate coverage for your needs.
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State Minimum Mississippi Car Insurance Requirements
Mississippi state law requires that all drivers purchase a certain amount of liability insurance coverage. If you get into an accident, liability insurance helps cover the costs of the person you hit. There are two types of liability insurance, bodily injury and property damage, both of which are required in Mississippi. Below we define these two types of coverages and the minimum limits you will need for each:
| Description | Minimum Required Limit | |
| Bodily Injury Liability | Covers the medical bills and injuries of the person you hit | $25,000 per person / $50,000 per incident |
| Property Damage Liability | Covers the repair costs of the car or other property you hit | $25,000 per incident |
These state minimum Mississippi car insurance requirements are in place to protect all drivers. Without these minimum requirements, accident victims would have to pay out of pocket to fix their car or medical bills. These state minimums ensure that all accident victims have a way to reimburse their costs when they are hit!
How do Mississippi car insurance requirements compare to other states?
The state minimum Mississippi car insurance requirements are similar to those in other states. However, unlike some other states with broad coverage requirements, Mississippi requires no other car insurance beyond bodily injury and property damage liability. For example, some other states will require coverage like uninsured motorist or personal injury protection.
Can you purchase less than state minimum insurance in Mississippi?
No! Purchasing less than state minimum requirements (or deciding not to purchase car insurance at all) is illegal. Compared to other states, the consequences of driving without car insurance in Mississippi are relatively lax. However, driving without insurance is still considered a misdemeanor and can result in several consequences, including:
- Fines of up to $1,000
- License suspensions
If your license is suspended, Mississippi will also require that you maintain an “SR-22” form for 3 years. This form is filed by your car insurance company and confirms to the state that you’ve had no lapses in your car coverage.
By far, however, the biggest risk of not carrying car insurance in Mississippi is getting into an accident without insurance. If you cause an accident and don’t have insurance, you may be taken to civil court by the accident victim. In civil court, you may be required to pay a significant amount to the accident victim. Depending on how severe the accident is, this could cost you your savings and other assets (potentially even your house!).
Do I need to keep proof of insurance in Mississippi?
Yes, you are required to keep proof of insurance in your car in Mississippi. Since 2013, Mississippi has allowed drivers to present either a physical or electronic version of their insurance car upon request. While it is not legal for a law enforcement officer to pull you over solely to check if you have state minimum insurance, they can ask you to provide proof when stopped for another violation.
Is it enough to just purchase Mississippi state minimum insurance?
Although the average accident results in claims below state minimum limits, you will usually want to purchase more than minimum insurance. In 2019, the average car accident victim in Mississippi received injuries costing $16,381, which is below the national average of $22,352. An average accident also resulted in a $4,666 payment to replace or repair the victim’s car – which is in line with the national average of $4,659 (based on data from the NAIC).
Based on these averages, state minimum Mississippi car insurance requirements may be enough for most accidents… however, averages can be misleading! In more severe accidents, you may be required to reimburse victims for significantly more than these averages. For example, one law firm estimates spinal cord injuries settle for $350k-$400k on average! If you had state minimum coverage and caused a spinal cord injury your insurance wouldn’t be nearly enough.
Mississippi Lender Car Insurance Requirements
If your car is financed or leased, you will likely have additional insurance requirements stipulated by your lenders. The best source to find your lender’s requirements will be speaking directly with your bank. Typically, however, your lender will require you to purchase comprehensive and collision insurance. A description of these two insurance coverages is below:
| Description | Required Amount | |
| Collision Coverage | Replaces or repairs your car if you get into a crash | The cost of replacing your car |
| Comprehensive Coverage | Replaces or repairs your car if it is damaged by things outside your control (like hail) | The cost of replacing your car |
Unlike Mississippi state requirements – which protect people you might hit – lender requirements typically only concern your property.
What happens if you don’t insure a financed car in Mississippi?
If you don’t purchase collision or comprehensive insurance for a financed car, you will likely be in violation of your lender contract. When this happens the lender can legally cancel your loan and repossess your car.
In lieu of repossession, a lender can also put “force-placed” insurance on your account. What this means is that the lender will obtain insurance on your behalf. They will then include the monthly cost of this insurance in your car loan payment. Force-placed insurance is an issue for two reasons:
- Your insurance company has no incentive to price shop, so often force-placed insurance is more expensive than if you were to obtain insurance on your own.
- Force-placed insurance is designed to protect your insurance company, not you!
If you make the decision to purchase a financed car, it is essential to make sure you can also afford enough coverage to satisfy lender requirements. You do not want your car repossessed or to be forced into an insurance policy by your lender.
How much car insurance do I actually need in Mississippi?
There is no rule for how much car insurance you should purchase in Mississippi. Although most Mississippians could benefit from increased insurance coverage, realistically the cost of increasing your coverage is expensive. Bodily injury liability is typically the most expensive, but also the most critical type of insurance to purchase. This is because the cost of injuries is typically determined by lawsuits, and settlements can theoretically be limitless! It usually makes sense to prioritize increasing your bodily injury liability coverage over collision, comprehensive, or property damage liability insurance.
When deciding how much car insurance to purchase, you should balance what you can afford with your risk tolerance. For example, if you have children or other dependents you should consider purchasing more car insurance.
Can I have too much car insurance in Mississippi?
Yes! At a certain limit, it is typically more cost-effective to purchase an umbrella insurance policy instead of continuing to increase your auto coverage limits. Generally, if you need car insurance coverage at or above the limits in the below table, umbrella insurance may be a more cost-effective option:
| Bodily Injury Liability Limits | $100k per person / $300k per accident |
| Property Damage Liability Limits | $100k |