Understanding Your Car Insurance Policy

Choosing a car insurance policy is an easy task. You pick up the phone, call an insurance provider, and they’ll send you a few quotes. You just need to select the cheapest option to be covered, right? Not necessarily. There are a few things you may want to investigate and look into when choosing a car insurance policy. Here are our tips on the top things to look for in your policy:

Mississippi Car Insurance Liability Requirements

Most states have similar but slightly different requirements for auto insurance policies. Mississippi requires that all drivers maintain liability insurance and states that each driver should keep a record with them of said policy while in their vehicle. There is also a state-mandated liability coverage you must meet. The current requirements are 25/50/25, so ensure your current car insurance policy, at minimum, includes that coverage. 25/50/25 translates to this: Drivers must have a minimum of $25,000 liability insurance for each party, $50,000 of coverage per accident, and at least $25,000 in liability for any property damage.

Sometimes, insurance companies may offer you options that do not quite meet these state requirements. Be careful, and look out for any particular low-ball offers when shopping for insurance. This could be a sign that the insurance provider is not offering enough liability coverage to you. You’ll often hear the terms liability coverage and third-party coverage used interchangeably, but they are one and the same. Keep in mind that liability coverage typically covers other people for their injuries and property damage, but does not cover you and your property.

Auto Insurance Collision Policies

So what’s the difference between liability insurance and collision insurance? Liability covers the other driver, their injuries and their property. Collision insurance is about covering you, and your property after an accident. Not only will it cover your vehicle, but it can also cover any damage to a stationary object (not another vehicle.) So for instance, if you hit a mailbox, a fence, or run into your garage door. There are no minimum requirements in Mississippi for a collision policy, but it may be worthwhile to investigate and get price quotes so you and your property will be covered, too.

Comprehensive Car Insurance in Mississippi

Lastly, there is an option to sign up for comprehensive car insurance. If you add on a collision policy and/or a comprehensive policy to your car insurance, you’ll now be registered for what is often referred to as a full-coverage policy. A full-coverage policy is not required in the state of Mississippi, only a liability policy is required. But remember, the liability policy only covers others who are involved in an accident. A full-coverage policy helps cover you and your property damages as well. Comprehensive coverage covers your vehicle for anything else that could happen or damage your vehicle outside of an accident with another vehicle. This could be vandalism, weather-related damages, fire damage, and even theft. If you have questions or have been injured or hurt in a car accident, we’re here to help. We offer free consultations and you may be entitled to financial compensation. Call Chatham Gilder Howell Pittman today for a free consultation.