Holcomb Dunbar - North Mississippi Attorneys

Insurance Law From A to Z Series – Minimum Coverage

Summary Mississippi Insurance Law CoverIt’s time for the next installment of Holcomb Dunbar law series “Insurance Law from A to Z.”  This was put together by our litigation group who practice in the insurance law arena.  Of course, if you have questions about these or any other topics please do not hesitate to contact us.

This week’s installment – Financial Responsibility Law

The minimum liability coverages required by Mississippi law are 25,000/50,000/25,000.

Mississippi’s financial responsibility statute, Miss. Code Ann. §63-15-43, provides, in part, that insurers “[s]hall pay on behalf of the insured named therein . . . all sums which the insured becomes legally obligated to pay as damages arising out of the ownership, maintenance or use of such motor vehicle … .”   This statute, however, does not set the minimum coverage requirements for standard automobile policies.  Instead, the requirement of minimum limits is found by turning to Miss. Code Ann. § 63-15-4 and §63-15-3(j).

Since 2001, Mississippi has required motorists to carry minimum limits of liability insurance. Miss. Code Ann. §63-15-4 provides that every motor vehicle operated in this state shall have an insurance card maintained in the vehicle as proof of liability insurance that is in compliance with the liability limits required by §63-15-3(j).  Miss. Code Ann. §63-15-3(j) defines “Proof of financial responsibility” as “proof of ability to respond to damages for liability, on account of accidents occurring subsequent to the effective date of said proof, arising out of the ownership, maintenance or use of a motor vehicle, in the amount of” $25,000 per person/$50,000 per accident because of bodily injury or death and $25,000 because of property damage in any one accident.”

The insured may elect to obtain UM/UIM limits in at least the minimum provided for by the above statute and up to the limits of liability purchased.  All policies are required to contain minimum UM coverage, unless rejected in writing by any named insured.  Miss. Code Ann. § 83-11-101, et seq.



The information contained in this post is for general guidance on matters of interest only.  The application and impact of laws can vary widely based on the specific facts involved. Given the changing nature of laws, rules and regulations, there may be omissions or inaccuracies in information contained in this report.  Accordingly, the information in this report is provided with the understanding that the authors are not herein engaged in rendering legal, tax, or other professional advice and services.  As such, it should not be used as a substitute for consultation with legal or other competent advisers.  Before making any decision or taking any action, you should consult with your counsel or the attorneys at Holcomb Dunbar.