Commercial Auto Insurance Minimum Requirements in Mississippi

Determine Whether You Need Commercial Insurance

The following factors might help you determine whether you need commercial coverage:

• How many and what kind of vehicle(s) you need to insure

• How the vehicle(s) is being used

• Who drives the vehicle(s)

• Who owns the vehicle(s)

Sometimes it’s difficult to determine whether you need a private auto insurance policy or a commercial one. Businesses generally need commercial policies for the vehicles they use for matters related to their businesses, but if you’re a sole proprietor who has one vehicle set aside for, say, business-related traveling, you might be able to get by with a private policy.

In the following scenarios, the vehicle owners usually need commercial insurance:

• Your business equipment cannot be removed from the vehicle(s).

• You or your business picks up and delivers goods and/or people.

• You have multiple vehicles used by craftsmen or skilled workers (aka artisan use).

• The coverage limits on a personal auto policy are not high enough.

• You need to protect your employees when they use your company vehicle(s) or their own vehicles on company time.

Contact the Department of Public Safety (DPS) or give the State Tax Commissioner a call at (601) 923-7000 if you still need help determining whether your vehicle requires commercial coverage.

Determine the Required Amount of Coverage

When you start shopping for commercial coverage, insurance providers will want to discuss with you the following:

• Who owns the vehicle(s)

• Weight of the vehicle(s)

• Usage of the vehicle(s)

• Liability limits requirements

Depending on your situation, you might be able to purchase the same minimum liability coverage amounts the state requires for private passenger vehicles. Those amounts are:

• $25,000 per person per single accident

• $50,000 per accident for bodily injury

• $25,000 per accident for property damage

The required amounts of commercial coverage might vary by case, so your insurance carrier will help you if you need to purchase more that the minimum liability amounts. You can also contact the DPS or call the State Tax Commissioner a call at (601) 923-7000 for assistance.

Purchase a Commercial Policy

Many insurance carriers offer commercial coverage in addition to the kind of traditional liability coverage you’d purchase for a private passenger vehicle. Be sure to shop around for the company that can provide exactly the coverage you need for your vehicle.

Proof of Insurance and Financial Responsibility

Generally, an insurance card from your carrier will suffice as proof of insurance for your commercial vehicle; however, you should talk about other options or requirements with your carrier or the DPS.

Penalties for Failure to Maintain Financial Responsibility

If a law enforcement officer asks and you can provide no proof of insurance, you could have to pay a fine of $1,000 and sit through a year-long registration suspension―if it’s your first offense. Subsequent offenses mean harsher penalties.

Contact the DPS or call the State Tax Commissioner a call at (601) 923-7000 for information about fines, suspensions, and other penalties related to failure to maintain financial responsibility.