Mississippi Insurance Questions Answered

Popular Questions about Mississippi Car Insurance

Mississippi residents pay higher-than-average rates for car insurance. That makes it especially important that you seek out the best possible price. Independent insurance agents can help you find the lowest costs on the coverage you need. 

The average cost for car insurance nationwide is $1,311. In Mississippi, residents pay an average of $1,584 per year. You'll get the best rates if you compare quotes from multiple companies before you choose a policy. 

Driving on Mississippi roads can be dangerous. Accidents happen, and there are a number of risks you may not even know about. Here's what car insurance will do for you:

  • Fix your car: (Not required) We call this "comprehensive & collision coverage." Though it is not required by the state, it may be required by your lender. 
  • Fix someone else's car:  (Required/Min. $25,000) We  call this "property damage liability."
  • Pay your medical bills: (Not required) We call this "personal injury protection" or "PIP."
  • Pay someone else's medical bills: (Required/Min. $25,000 per person / $50,000 per accident) We call this "bodily injury liability."

Mississippi drivers are required to have insurance that meets or exceeds the minimum requirements. It is designed to cover someone else's vehicle damage and medical bills if you cause an accident. Make sure your insurance is up-to-date by double-checking necessary coverages with a Trusted Choice agent.

The driver who caused the accident is responsible for covering the cost of damage.

Unfortunately, some people drive without any insurance. These careless drivers are on the road without a financial backup plan for accidents, putting both themselves and you at risk. 

That's where "uninsured motorist coverage" comes in. If you are hit by an uninsured driver, getting compensation can be extremely difficult. With this additional insurance coverage, you'll be compensated for medical bills and car damage. Mississippi does not require you to have uninsured motorist coverage, but it's an extra layer of protection that can give you peace of mind when you're behind the wheel.



Popular Questions about Mississippi Home Insurance

The average American homeowner pays $1,173 per year for home insurance, but in Mississippi, the average annual premium is $1,508, making it among the most expensive states in which to buy home insurance. Even though insurance is more expensive for homes in Mississippi, having insurance is vitally important because the severe weather and other hazards in this state can cause serious damage to area homes each year.

Your home insurance gives you a backup plan in case a catastrophe strikes in your neighborhood. Whether it's a fire, high winds or a burglary, you're covered if you have a suitable Mississippi homeowners insurance policy.

Pays for repairs to your home and your belongings

  • Example: A tree falls on your house and rain ruins your 60" Samsung TV.

Pays for someone else's injuries or property damage when it's your fault

  • Example: Your kid is playing baseball and accidentally smacks the ball through your neighbor's window.

Pays for temporary living expenses when your home is damaged

  • Example: You need a hotel while your house's roof is being repaired due to a fallen tree.

We can’t be 100% certain, but in 2016, insurance companies spent more than $414 million on home insurance claims in Mississippi. That's a lot of unfortunate events happening to Mississippi homeowners.

Insurance carriers calculate the cost of a home insurance policy by asking "How likely is it that something bad will happen?" The more likely it is that something bad will happen, the more expensive the home insurance policy will be, and vice versa. We call these potential disasters "risk." Let’s take a look at how risky Mississippi is compared to the rest of the US.

Crime

The burglary rate in Mississippi is much higher than the national average. Be sure to protect your property by securely locking doors and windows, keeping entryways unobstructed from view and well-lit, and leaving a few lights on or putting lights on timers when you are out of town.

  • Average number of burglaries per 1,000 homes in MS: 7.81
  • Average number of burglaries per 1,000 homes in the US: 4.69

Weather

Severe storms, hurricane-force winds, and tornados can all wreak havoc on property in this state. Be sure that your home insurance provides the coverage you need before disaster strikes.

  • Number of federally declared disasters in MS since 1953: 68
  • Most common cause of disasters in the state: Severe Storms
  • Average number of tornados per year in the state: 45.1
  • Amount paid in home insurance claims in 2016: $414,262,000

Home Values

The estimated cost to rebuild your home will play a large role in how much your home insurance costs. In Mississippi, the average home value is much lower than the national average. This helps to keep insurance rates from skyrocketing, despite the many weather-related risks.

  • Average home value in MS: $113,900
  • Average home value in the US: $188,900

Yes! There are currently 208 Trusted Choice agents in Mississippi who are ready to help. Did you know that independent insurance agents can give you multiple policy options to choose from? That way, you'll receive completely customized coverage that addresses all of your unique insurance needs.


Popular Questions about Mississippi Business Insurance

In 2017, small businesses in Mississippi made $72.3 billion. Mississippi small businesses are extremely successful. But accidents happen, and without insurance, business claims and legal fees will have to be paid out of your pocket. 

You can protect your business’s revenue by having proper, comprehensive and customized commercial insurance.

40% of small businesses are likely to experience a property or general liability claim in the next 10 years. Here are some things these companies have been using their insurance on:

  • Theft or burglary: Average cost per claim - $8,000
  • Water damage & freezing pipes: Average cost per claim - $17,000
  • Wind & hail damage: Average cost per claim - $26,000
  • Fire damage: Average cost per claim - $35,000
  • Customer slip & fall: Average cost per claim - $20,000

Mississippi business insurance will pay for covered claims so your business doesn’t have to. If your physical office space is damaged, a client files a liability claim, or your employee is injured, you won't have to worry about your financial security.

Here’s what a standard business insurance policy should do:

Pay for damage to your building

  • We call this “commercial property insurance.”
  • Example: A tree falls on your office building.

Pay for damage to your business property

  • We call this “business personal property insurance.”
  • Example: A fire destroys all your computers.

Pay for damage to someone else’s property

  • We call this “general liability insurance.”
  • Example: A contractor does a poor job of installing a cabinet, and it falls and breaks the homeowner's kitchenware.

Pay for someone else’s medical bills

  • We also call this “general liability insurance.” 
  • Example: A customer slips and falls on your recently mopped floor and breaks an arm.

Pay for accidents in company vehicles

  • We call this “commercial auto insurance.”
  • Example: Your salesperson rear-ends someone while driving to an appointment.

Pay for employee injuries & compensation

  • We call this “workers' compensation.”
  • Example: An employee falls off a ladder at work and can’t work for two weeks.

Sometimes, these coverages are not enough to properly protect a business against risk. Your business most likely faces unique risks and may need additional coverages.

To make sure you're properly insured, we can match you with the right independent insurance agent who specializes in your field.

A commercial insurance policy is not required of most Mississippi businesses, but keep in mind that certain coverages may be necessary. 

Businesses that have company-owned vehicles must carry commercial auto insurance. And being in a coastal state means you're prone to experience physical damage from bad weather. 

To learn more about coverages that you may need to carry, you can talk with a local independent insurance agent.

It primarily depends on how risky your business is. The riskier your business, the higher your insurance will be. Here are two examples.

  • A sole proprietor who owns a garment hemming business: $260 per year
  • A commercial landscaper with five employees who operate heavy machinery: $22,700 per year

Business insurance rates are calculated using a number of factors such as the risks to your business property, your liability coverage needs, and the amount and types of coverage you want. 

Policies can vary significantly by business industry, so it is best to talk with an experienced insurance agent when building a suitable and comprehensive policy for your business.

It’s usually wise to work with an independent agent in Mississippi, since they have access to multiple insurance companies. Sometimes it's difficult to find an insurance company that will cover your business.

  • There are 257 independent agents in Mississippi who are ready to help.
  • In 2017 our agents helped 1,427 people.

Popular Questions about Workers' Compensation in Mississippi

In Mississippi, all employers with five or more regular employees are required to have workman’s compensation coverage. If an employer has fewer than five employees, workers’ comp coverage is not mandatory, but the employer can choose to provide it. 

Domestic laborers, farm laborers and employees of nonprofit, fraternal, charitable and cultural organizations are exempt from the Mississippi workers’ compensation laws. Volunteers and independent contractors are also exempt. 

Construction employers:  Five or more employees

All employers: Five or more employees

Agricutural employers: Exempt

Mississippi has a private workers’ compensation market. This means that employers can purchase workers’ compensation insurance from any private insurance carrier or insurance agency that is licensed to sell or write it. 

Medical bills
Example: A waiter suffers severe burns and needs to be taken to the hospital.

Wage replacement
Example: An employee needs to miss three days of work to recover from a back injury that happened on the factory floor.

Death benefit 
Example: A coal miner's family receives benefits after a work-related fatality.

Mississippi workers’ compensation pays for medical bills for injured or disabled workers. It also pays for lost wages if an employee cannot work while they recover from the injury. In addition, Mississippi workers’ compensation insurance provides death benefits to a surviving spouse or dependents if an occupational injury leads to a worker's death. 

Classification code: The National Council on Compensation Insurance (NCCI) assigns a risk classification code to every occupation in the state. Each classification code represents employers with similar exposures.

In the example below, you can see that masons in Mississippi use the classification code 5022.

Example : Mason = 5022

Base rate: Each classification code is assigned a specific dollar amount — or base rate — that is determined by how hazardous the occupation is for workers. The base rate is used to determine an individual employer’s full workers’ compensation premium. Base rates are revised each year. 

In the example below, we use the base rate of $6.62 for a mason in Mississippi. 

Example : Mason = $6.62

Calculation example:

Base rate x (Payroll/100)

Step 1: $100,000 Payroll / $100 = $1,000

Step 2: $1,000 X $6.62 (base rate) = $6,620 

Estimated workers' comp premium: $6,620

In many cases, an additional factor is added to the formula for worker's comp premiums. Many employers are assigned an experience modification factor, or experience mod, which increases or decreases their premiums. 

The experience modifier is critical and will make a huge difference in what you pay over time as you establish a claims history. It is a comparison of your workman’s compensation claims experience with that of other employers of similar size and industry. Your mod is determined by your actual losses compared with expected losses for your industry (plumbers are compared to plumbers, restaurant workers to restaurant workers, etc.). Depending on your mod, your premium increase or decreases. 

Average mod: 1.0 = Does not impact premium

Debit mod: Greater than 1.0 = Premiums go up

Credit mod: Less than 1.0 = Premiums go down

Employers will receive an experience modification factor when they have:

  • $9,000 in policy premium generated during the last year or last two years; or
  • $4,500 average policy premium generated for more than two years

If your workers’ compensation policy is experience-rated, your premiums are determined by:

  • Base rate x Payroll x Mod