If you are involved in an accident and

minimum requirements.
have a claim, there are certain things that you
Buying Auto Insurance

However, for the vast majority of peo-
should do:
ple, automobile liability insurance is the most
Call the police ­ even if it is an accident
where the police do not normally respond.

Get the name, address, registration number,
A
effective way to protect yourself financially in
lthough Mississippi's auto
insurance company name and operator's li-
cense number of all vehicles and operators
Automobile
case of an automobile accident. Maintaining it in
insurance rates compare fa-
your vehicle is now the law. State law says that
involved.
vorably to other parts of the
a law enforcement officer cannot stop you solely

Note the time, date, location, road conditions,
United States ­ where a
make and year of vehicles involved, apparent
damage and injuries, and your version of
Insurance
to check if you have an insurance card, but he
year's premium on a vehicle
or she can ask you for proof of insurance during
what happened. Make a diagram of the acci-
can cost thousands of dollars ­
a stop for any other statutory violation. The ini-
dent scene.

automobile insurance remains
Notify your insurance agent or company as
soon as possible.
Consumer's
tial penalty for failing to maintain an insurance
a very important purchase for
card is $1,000 and suspension of driving privi-
George Dale

most Mississippians. To get
leges for one year or until the motor vehicle
Obtain the names and addresses of all wit-
the best value for your money, you must take
nesses and individuals involved in the acci-
dent.
Guide
owner shows proof of insurance.
responsibility for your auto insurance purchase.

Liability: What you need to know
Take reasonable steps to protect your prop-
This guide shows you how to lower your cost and
erty from further damage.
get more for your money.

Liability coverage pays for damage you

If you have a loss, notify your company
cause to other people and their property. It pro-
· What the law requires
promptly. Make copies of the completed forms
tects your assets and wages from seizure and
to keep for yourself.

Mississippi law requires that all drivers
litigation. However, you should realize that in

After the company is informed of your
today's era of ever-rising medical costs and auto
RANCE
maintain liability insurance and carry a card in
claim, they should send you any needed forms
repair bills, the state-mandated minimum re-
U
their vehicles at all times showing that you have
to verify your claim. The claim should be paid
liability insurance. On January 1, 2006, the mini-
quirements of 25/50/25 may not be sufficient. It
promptly after the company has received ade-
mum liability requirements increased to the fol-
is a good idea to consider purchasing liability
quate proof of loss. If the company rejects your
lowing: $25,000 per person (limited to a single
coverage with higher limits. Remember, if you
claim or pays only part of it, you should be pro-
I INS
accident), $50,000 per accident for bodily injury,
are at fault in an accident, liability coverage will
only pay up to your limits of insurance. You will
M I S S I S S I P P I
and $25,000 per accident for property damage.
be responsible for any damages over that
I N S U R A N C E
Technically, you, as a Mississippi driver, can le-
D E P A R T M E N T
gally satisfy these requirements by:
amount. You will need to purchase other kinds
of coverage if you want the insurance company
DEPARTMENT

Internet: http://www.doi.state.ms.us
ISSIPP
Showing proof of liability insurance with bodily
to pay for your medical bills and vehicle repairs.
Mail: P.O. Box 79, Jackson, MS 39205-0079
George Dale
injury and property damage limits at least

equal to the minimum requirement.
· Know what your policy covers



Insurance Commissioner
Posting a bond for these same amounts.

Many states with compulsory liability
State Fire Marshal
Phone: 601.359.3579
MISS

laws still have substantial numbers of uninsured
Making a cash or security deposit equal to the
Intrastate Toll-Free: 800.562.2957
Fax: 601.359.2474
Revised January 2006

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motorists ­ those without any form of automo-
cision on how much auto insurance to pur-
driving course can reduce your liability and col-
you pay for. In addition to comparing prices, it
bile insurance. If an uninsured motorist hits
chase based on what you can afford. Insurance
lision premiums. Young drivers who take driver
is a good idea to compare the financial
your car, you may not be able to collect dam-
companies write policies in many different
education also can get a similar discount.
strength of a company, its reputation for ser-
ages. However, if you purchase Uninsured/
ways:

vice, and specific coverages, discounts and
Underinsured Motorists (UM/UIM) protection,
directly to consumers via telephone or the
· Keeping costs low...
Internet,
other benefits they offer.
you can make a claim for your injuries or dam-


There are many things you can do to

A claims-paying ability rating ­ indi-
ages through your own insurance company.
through independent agents who represent
keep the cost of automobile insurance as low
more than one company,
cating how well prepared an insurance com-

Other optional coverages that can be

as possible. Here are a few tips:
pany is to pay out claims - is a good indicator
added to your auto insurance policy include
through captive agents who represent one
Maintain a good driving record.
company.
of a company's financial strength. Some of the
collision, comprehensive, and medical pay-


In order to find the best possible rate,
Ask about discounts.
most well known rating companies are A.M.
ments components. Collision coverage will pay
we suggest you contact many different agents

Take the highest deductible you can afford if
Best, Standard & Poor's, Duff & Phelps Credit
for the cost of repairing dam-
and companies. You may want to make a
you opt to carry collision and comprehensive
Rating Co., Moody's Investors Service, and
age to your car caused by an
coverage.
worksheet to help you keep track of the auto

Weiss Ratings. Ratings from many of these
impact with a vehicle or object.
insurance quotes you get from different compa-
Before buying a vehicle, determine the cost
of insuring it. High-performance vehicles
services can be found at the public library or
Comprehensive coverage will
nies. A good place to start is the MID Auto/
mean higher insurance rates. If you are fi-
on the Internet. A list of major rating compa-
Need help?
reimburse you if your car is
nancing a vehicle, chances are the lender
Home Rate Comparison Guide located at the
Contact MID at
will require you to take out comprehensive
nies, their phone numbers, and their Internet
800.562.2957
stolen. Medical payments cov-
MID web site at http://www.doi.state.ms.us/
and collision insurance, which will drive your
insurance costs up.
addresses are located at http://
erage will pay the expenses of
publist.html. Here you can find price compari-

www.doi.state.ms.us/consumer/
persons injured in an accident regardless of
If your car is paid-for and has a low market
sons of the largest auto and homeowners in-
value, consider forgoing comprehensive and
ratingservices.html. (MID is unable to recom-
fault. If your car was financed, most often your
surers in Mississippi.
collision insurance. You may be paying more
in premiums than you would receive if your
mend or provide ratings of individual compa-
lender will require you to carry collision and

Also, it is a good idea to keep track of
car was damaged or stolen.
nies.)
comprehensive coverage.

the discounts offered by each company. If you
Generally, it is cheaper for young drivers to

It is possible to cut your collision and
own two or more cars and have all your auto
be included on their parents' policy than to

comprehensive premiums by raising your de-
have one on their own. Young drivers also
insurance with one company, you are often
can get good-student discounts with some
If you have a claim ...
ductibles. If you have an older car, you could
eligible for a discount under a "multi-car" plan.
companies.

opt to forego the collision and comprehensive
Some companies offer discounts to farmers,
Pay your insurance in a timely manner. If
coverages altogether. Because the value of a
you are cancelled for non-payment of pre-
good students, and others. Often, a discount is
mium, it will be harder to find a company

If you want to know the claims-paying
car is based on its age and condition, these
offered for drivers over 55 who pass a special
willing to cover you.

ability rating of a particular insurance com-
factors will be considered in the amount you
driving course.
Review your policy periodically and update
pany, ask an agent or company representa-
can recover in the event of a loss. If you have
coverage accordingly.

Additional discounts are given on

tive. Compare how the company stacks up to
health insurance, medical payments coverage
equipment in your car such as anti-lock brakes,
· Without sacrificing quality...
the other rated companies. If you have trouble
may not be necessary.

anti-theft devices, air bags, and automatic seat-

While it is important to keep the cost of
getting the information from the company it-

· Shopping for auto insurance
belts. On average, a five percent discount is
automobile insurance low, price should not be
self, you may want to think twice about buying

given on such equipment. Taking a defensive
the only consideration when you are shopping
from them.

Ultimately, you will be making your de-
for insurance. As the saying goes, you get what
(Continued on page 1)

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vided an explanation in writing.

If you believe your insurer has refused to pay all or part of a valid claim, you should first contact them. If you don't get a prompt, satisfactory response, contact MID.

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