Learn How Auto Insurance Works, What Coverage You Need, and How to Buy an Affordable Policy
Welcome to our guide on the basics of car insurance. This guide contains answers to questions that are frequently asked by Mississippians.
How Car Insurance Works
When you drive a personal or commercial vehicle, you have multiple options for car insurance coverage:
1. Auto Liability Coverage
You are required to purchase a liability insurance policy in order to operate a motor vehicle in Mississippi. Liability Insurance only pays for damage or injury that you cause other people. However, if you cause an accident, liability insurance does not cover your own car or medical expenses.
2. “Full Coverage” Insurance
In addition to state-required liability insurance, you may also purchase insurance that protects you against physical damage to you or your vehicle. If you finance your car, your lender will likely require that you purchase “full coverage” insurance, meaning adding Physical Damage, Collision and Other than Collision, to pay for damages to your vehicle.
With Mississippi Farm Bureau Casualty Insurance Company, a “full coverage” policy also includes rental vehicle and roadside assistance at no extra charge. Optional coverages, including Uninsured Motorist and Medical Payments coverage to help with injuries to people in your vehicle, may also be included.
About Liability Insurance Requirements
Many people do not realize that liability car insurance is required in Mississippi. The minimum liability requirements are quite low:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $25,000 per accident for property damage
It is estimated that nearly 24% of all drivers in Mississippi are uninsured, making our state the second highest in the nation for uninsured motorists. Therefore, it is quite common for people to have car accidents where one of the parties involved does not even have this very small amount of insurance.
To offer some extra protection against this, Mississippi Farm Bureau Casualty Insurance Company offers Uninsured/Underinsured Motorist Coverage. This insurance pays for damages sustained by you but that are caused by an at-fault driver with insufficient liability limits or no insurance at all.
What Car Insurance We Recommend
Insurance is about protecting your assets. Your assets include the people in your family, cars you drive, home you live in, and the money you have in the bank. In some cases, it can also include future income, so not having enough car insurance can have detrimental effects on your assets and your future. If you cause an accident and cannot pay the damages, your property, assets and future income are at risk in a judgement against you.
It is possible to reach the state liability minimum ($25,000) very easily. For example, an accident in which you hit a car that hits another car will likely cause far more than $25,000 in damage. Most new and late model vehicles are worth more than $25,000 leaving you to pay the balance. Or, say you hit a semi-trailer that is carrying a piece of expensive equipment. Damages can add up quickly, and you’ll be responsible for paying them unless you have enough insurance. It is also very easy to exceed the injury amounts of the required minimum limits.
Because every individual’s assets and income are different, our recommendation for the best auto insurance policy is to have a thorough discussion with your agent. In a meeting with your agent, you’ll go over what assets you need to protect vs. the liability limits you carry. You’ll be able to choose a limit that protects you in case you’re in an accident. This way, your assets are protected, and you will avoid this type of financial trouble.
In other words, you need a plan to deal with a car accident and not just a policy.
Auto Insurance for Teen Drivers
If you are raising a teenager, and it’s time for them to get behind the wheel, you may not know what to do in terms of car insurance coverage. The amount of insurance you need will depend on the assets you need to protect.
Statistically, a teenage driver will be in a car accident. Even if the accident is not large or serious in nature, the cost could be detrimental if you do not have enough liability insurance. Review your liability limits with your local Farm Bureau Insurance agent to make sure that your teenager is properly covered. Your agent has a lot of experience in seeing these types of accidents and how much they can cost their policyholders. They can help you make an informed decision about the liability limits on your teen’s policy.
Nearly 24% of all drivers in Mississippi are uninsured, making our state the second highest in the nation for uninsured motorists. We offer protection against this with Uninsured/Underinsured Motorist Coverage.
How to Save on Car Insurance
There are several ways to save money on your car insurance premium when you use Farm Bureau Insurance.
Bundle Your Insurance Policies
For an immediate savings on your premium, consider bundling multiple Mississippi Farm Bureau Insurance policies. For example, if you have car insurance as well as renter’s or homeowner’s insurance, you may combine them to make the overall premium cheaper than they were separately. Bundling can be done with almost all of our auto and property policies, and the more you bundle, the more you save on what would be an individual policy’s premium.
Keep Up Your Credit Score
Insurance rates have some credit base, so your credit score may affect your premium. Therefore, as a long-term savings strategy, stay on top of your credit score to maintain lower premiums.
Stay With Us
At Mississippi Farm Bureau Casualty Insurance Company, we reward you for the longevity of your business. When you continue to renew your policies with us, you receive loyalty credits.
Federation Savings
Our policyholders are also members of the Mississippi Farm Bureau Federation. Being a member of the Mississippi Farm Bureau Federation comes with many useful discounts for products and services members regularly need. A popular discount is the car seat program, which offers $25 car seats and $15 booster seats.
The Benefits of Insuring With Mississippi Farm Bureau Insurance
Farm Bureau Insurance is able to cover you with insurance that fits your budget and provide great claims service at the same time. We offer the benefits of a big company while operating locally.
We’re Large
Our large size allows us to:
- offer high quality, affordable insurance policies
- provide the latest technology for managing your account, like the MOBILE agent app and online account access
- launch state-wide responses like The Farm Bureau Promise
- support Mississippi athletes as well as many other local causes
We’re Local
Each of our local offices provide our policyholders with a mom and pop feel. When you walk in the door, you’ll be able to sit down with an agent who lives and works in your community. Our local adjusters handle our claims quickly and efficiently too.
How to Get a Car Insurance Quote
The first step to getting a car insurance quote is to find your local agent. Contact an agent in the way that makes you feel most comfortable. Our Agent Finder includes ways to contact a local agent by phone, email, in person, and in some cases, text message or social media. Once you’ve made contact, they’ll request some basic information in order to put together a personal quote for you in a matter of minutes.
To start, use our Agent Finder below.
Master Agent Jeffrey Williams of Corinth helped provide additional insight about car insurance from Mississippi Farm Bureau Insurance for this article. He and the rest of the Alcorn County Team give our policyholders expert advice on purchasing all types of insurance.