Is Mississippi a no-fault state for auto insurance? 

I recently moved to Mississippi and I'm shopping for Mississippi car insurance. What is the no-fault law, and how does it affect my insurance coverage if I’m in an accident?

When it comes to determining fault after a car accident, states follow either a no-fault or an at-fault system. In a no-fault system, car accident victims can file claims with their own insurance companies for medical bills, lost wages, and rehabilitation costs after an accident whether or not they caused the crash, rather than attempting to collect from the at-fault driver. 

What’s more, in a no-fault system, the victim in most cases is prohibited from suing the at-fault driver for non-economic damages like pain and suffering. There are some exceptions, but the general idea is that a no-fault system limits the number of lawsuits over car accidents and the exorbitant financial awards that often are the result. 

Mississippi is not a no-fault state. Under its fault-based system, a victim can expect to be reimbursed for medical expenses by the at-fault driver’s insurance, and is permitted to sue an at-fault driver for additional damages like lost wages and pain and suffering.

What is the no-fault law in Mississippi?

Mississippi does not have a “no-fault” law. It has a traditional fault-based system for determining the financial responsibility for losses resulting from a car accident. This means that the person who is determined to be at fault for the crash is responsible for any resulting financial harm, including physical damage and medical expenses.

In Mississippi, a person who suffers any kind of injury or damage due to an auto accident is permitted to:

• File a claim with his or her own insurance company, assuming that the loss is covered under the policy. The injured person's insurance company will likely then pursue reimbursement from the at-fault driver’s insurance carrier (a subrogation claim).
• File a third-party claim directly with the at-fault driver’s insurance carrier.
• File a personal injury lawsuit against the at-fault driver.

By comparison, no-fault car insurance states an injured driver has fewer options for recouping his or her losses. After a car accident in a no-fault state, the personal injury protection (PIP) coverage in your own car insurance policy pays for your own medical bills and other out-of-pocket losses, regardless of fault. If your injuries exceed a certain limit, you can make a claim against the at-fault driver. 

But in Mississippi, the fault-based system functions in a more traditional manner, where the at-fault driver is legally responsible for the victim’s losses right from the outset. 

How are accidents covered in an at-fault state like Mississippi?

In Mississippi, the driver who causes the accident is responsible for paying for the other driver’s accident-related expenses. Police and insurance companies evaluate the crash scene and witness statements to decide who is at fault for the accident. 

Keep in mind that the fault can be shared by all of the drivers involved in an accident. It could be determined that one driver is 20% responsible for an accident while a second driver is 80% responsible. Because Mississippi has pure comparative negligence laws, you can collect damages that are proportionate to your fault in causing the crash. For example, if you're 80% at fault, you can get collect 20% from the other driver.

While your car insurance will pay in accordance with the fault laws, it may take longer for the entire situation to be ironed out and fault to be determined. This may mean that it could take a little longer to get reimbursed. This also means that drivers can sue the at-fault party for almost any type of loss after their collision, beyond what is covered by the at-fault driver’s car insurance. Lawsuits for lost wages, emotional distress, and hospital bills that exceed the at-fault driver’s coverage are not uncommon after serious car accidents in at-fault states.