You must establish financial responsibility for each vehicle you register and operate in this state. Establishing financial responsibility protects both you and the other party should an accident occur.

Ways to Establish Financial Responsibility

In order to establish financial responsibility, you must purchase an insurance policy that meets the state’s minimum requirements. You can purchase a policy from any insurance carrier licensed to sell auto coverage in Mississippi and, if you have questions about a carrier’s license, the Licensing Division of the Mississippi Insurance Department can help you.

Mississippi Liability Insurance Requirements for Private Passenger Vehicles

Liability coverage is a requirement for all registered vehicles in the state. Your liability insurance policy must include the following amounts of coverage:

• $25,000 per person per single accident

• $50,000 per accident for bodily injury

• $25,000 per accident for property damage

Those numbers meet the state’s minimum financial responsibility requirements, but they might not meet the needs of your particular situation. For example, if you drive an expensive vehicle or are still indebted to a lienholder, you might need to browse the various types of auto coverage available.

Proof of Insurance and Financial Responsibility

You don’t have to show proof of insurance during vehicle registration or renewal; you do, however, have to show it to any law enforcement officer who might pull you over. Make sure you keep your valid insurance card in your vehicle at all times as proof of financial responsibility.

Penalties for Failure to Maintain Financial Responsibility

When they can present no proof of insurance, Mississippi residents face stiff penalties―to the tune of a $1,000 fine and a year-long registration suspension (or, until they obtain and show proof of insurance). Subsequent offenses bring even harsher consequences.

If you have questions about fines and registration suspensions, please contact the Mississippi State Tax Commission’s Motor Vehicle Licensing or your local tax assessor and someone will be able to help you with your particular situation.