Car insurance costs are rising precipitously in Mississippi, insurance industry officials say.
The state insurance department expects a more than 20% hike in insurance coverage thanks to an increase in claims filed by Mississippians. The increase is so large, and across so many categories, that Mississippi actually leads the nation in auto insurance claims.
“On the lost cost side we outpace the rest of the country in what it’s actually costing,” Mississippi Insurance Department Consumer Services Director Andy Case told
Mississippi News Now. “There are three buckets of expenses that the insurance company will see. One is the medical side. Another is the pain and suffering, third party claims and lawsuits and the auto body repair.”
Mississippi also has a saturated risk pool, which is driving up costs for everyone.
On a nationwide level, traffic congestion, roadway conditions, distracted driving and the low price of gas are contributing to the increase in auto accidents.
Case urged consumers to reach out to their insurance agents to subvert as much of the increase as possible.
“Be wise in your insurance choices,” he said. “Go sit down and talk to a qualified agent and find out what options are available for you, what coverage is necessary, which ones you do not need.
“Revisit your deductible. Deductibles are a great way to control your rate.”
Officials expect the full impact of the rate hikes to impact the state in coming months.
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