Auto Insurance has been made mandatory in forty eight of the United States of America. The only two exceptions to this rule are New Hampshire and Wisconsin. Auto Insurance has been made mandatory in states to ensure that every driver can take financial responsibility in case of an accident. Financial responsibility is when a driver, who has caused an accident, is able to pay for all the damages caused in the accident. The state of Mississippi has also made auto insurance mandatory.
The state of Mississippi also follows the Tort system of rules. According to the Tort system, a driver has to be found responsible in case of an accident. This driver or motorist and his insurance company are now responsible for paying for any and all the damages caused during the accident. A few other states follow the no fault system, where nobody is found to be at fault and each driver is paid by his insurance company.
The state of Mississippi has many different insurance policies that one can use. Every state fixes a minimum sum that every one has to be insured for. This is known as minimum liability. The minimum liability in the state of Mississippi is of the form 25/50/25. It stands for twenty five thousand dollars for bodily injury per person and fifty thousand dollars in total for bodily injury covering two persons.
Property damage policy for twenty five thousand dollars is also made mandatory in the state of Mississippi. Bodily injury will cover any medical costs incurred by the person in the accident. Property damage will pay for any repair work on his car and even fro replacement if needed. Sometimes, it also covers lost wages. Property damage will also cover any damages caused to the buildings, fences, lamp posts etc.
Uninsured motorist’s coverage is very popular. This is a kind of insurance coverage that will pay for your damages if you are involved in a car accident with a person who is not insured as per the state of law and also does not have any assets for you to sure to recover the damages. Underinsured motorist’s coverage is also widely used. Many motorists get only the minimum liability and do not have enough finances or insurance to cover all the costs of the accident. In such a scenario, underinsured motorist’s coverage will help you cover your costs. This insurance policy is not mandatory in the state of Mississippi. However, many states have made it mandatory.
Physical damage policy is something that everybody needs. Physical damage policy will help you pay for the damages caused to your car. Collision damage will help you pay for the damages caused to your car in case it is in an accident. Minimum liability will only pay for the victim’s car. This will cover all damages including repair and replacement. Some even cover lost wages. Comprehensive damage policy will take care of any other damage your car might incur. It will cover costs when your car has been damaged due to falling objects such as branches or poles, hail, rain or snow.