Insurance Coverage in Motor Vehicle Accidents

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Mississippi drivers should be aware of the types of insurance coverage involved in a motor vehicle accident. There are three kinds of coverage offered on most insurance policies: liability coverage, uninsured/underinsured coverage, and medical payments coverage.

Liability coverage of a minimum of $25,000 is required by Mississippi law. Liability coverage protects Mississippi drivers when they are found to be at fault for a motor vehicle accident. They should be aware that while $25,000 is the minimum limits, it may not be sufficient to compensate an injured party for their damages. For example, if an injured party has $50,000 in medical bills, and a driver only has $25,000 in liability coverage, then the driver will be personally responsible for the $25,000 in damages which exceeds the policy limits.

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Uninsured/underinsured coverage — referred to as “UM” — protects Mississippi drivers when the party which causes an accident does not have liability coverage, or doesn’t have sufficient liability limits. While UM coverage is not required by law, Mississippi drivers must sign a statement saying that they don’t want it when they purchase a motor vehicle insurance policy. Typically, when you hear the phrase “full coverage,” it means that you have both liability coverage and UM coverage.

The last type of coverage is called Medical Payments coverage, or Med Pay for short. Med Pay provides for coverage for medical treatment necessitated by a motor vehicle accident, regardless of who is at fault for the accident. It’s extremely important for people who don’t have health insurance and is relatively inexpensive to add to any policy.