Cheap Car Insurance, Mississippi 2025: A Comprehensive Guide

Discover the cheapest car insurance options in Mississippi for 2025. Learn about coverage requirements, average costs, and the best companies for different driver profiles, such as young drivers and those with poor credit. Get actionable tips to lower your rates.

Most drivers in Mississippi want auto insurance that's affordable but still keeps them covered. In this comprehensive guide, we’ll explore the cheapest car insurance options in Mississippi for 2025 and break down average costs while highlighting the top providers.

Additionally, we’ll cover the effect of specific factors on your insurance rates and the best insurance options for different driver profiles.

Why Affordable Car Insurance Matters in Mississippi

While car insurance is a legal requirement in Mississippi, it also serves as a financial safety net. Auto insurance protects you and other drivers on the road in the event of an accident or other incidents involving your vehicle.

In addition to protecting against liability, car insurance can cover repair costs and medical expenses. In Mississippi, auto insurance even covers legal fees.

However, a common problem with car insurance premiums is that they can add up, especially for teens and high-risk drivers.

The solution is comparing quotes from different providers to find the most affordable auto insurance tailored to your needs.

Average Car Insurance Costs in Mississippi

On average, annual full coverage in Mississippi costs around $2,371, which breaks down to approximately $198 per month. For minimum coverage, the average yearly cost is about $695, or around $58 per month.

These figures are close to the national average, but your individual rates will vary based on several factors.

Factors That Affect Car Insurance Rates in Mississippi

Several key factors influence how much you’ll pay for car insurance in Mississippi. Understanding these factors can help you make informed decisions when shopping for coverage. They include:

• Driving Record: Drivers with a clean record can expect lower premiums, while those with traffic violations or accidents will likely pay more.
• Credit Score: Insurers in Mississippi use credit scores to assess risk. Drivers with a good credit history pay less, while those with poor credit pay more.
• Location: Where you live in Mississippi matters. Drivers in urban areas such as Jackson or Gulfport may face higher rates due to increased traffic and a higher incidence of accidents or theft. On the other hand, Starkville and Tupelo have much cheaper rates.
• Vehicle Type: The type of car you drive plays a role in your insurance costs. For example, luxury vehicles and cars with high repair costs will have higher premiums.
• Age and Gender: Younger drivers, particularly males, are often seen as higher risk, leading to higher premiums.

The type of coverage you choose will also impact your premiums. While minimum coverage meets state requirements, full coverage provides more extensive protection in the event of accidents, theft, or other incidents.

Mississippi Auto Insurance Laws and Requirements\

Mississippi law requires all drivers to carry a minimum amount of car insurance for financial responsibility in the event of an accident. The state minimum coverage requirements are:

• Bodily Injury Liability: $40,000 per person and $80,000 per accident.
• Property Damage Liability: $40,000 per accident.

These minimums cover expenses in the event that you cause an accident. However, there are risks associated with buying only the minimum coverage required in Mississippi.

For example, in a scenario where you cause a serious accident with multiple vehicles, the damage can surpass the minimum $40,000 for property damage. Therefore, you would have to pay for the rest out of pocket.

For this reason, many drivers choose additional coverage to provide more extensive financial protection in case of damage to their vehicle, theft, or other incidents. Similarly, some drivers get higher limits for more coverage.

Optional Car Insurance Coverage in Mississippi

Some of the additional car insurance available to Mississippi drivers include:

Roadside Assistance

This covers services such as towing, flat tire changes, fuel delivery, and assistance getting into your car if you’re locked out. The exact services will vary depending on the insurer.

Collision Coverage

This coverage helps with repairs for damage to your vehicle from a collision with another vehicle or an object, such as a tree or fence. If your car is financed or leased, this may be required by the lender.

Comprehensive Coverage

A lender or lessor may require this type of coverage. Comprehensive pays for damage to your car from something other than a collision. This coverage can therefore pay for other factors such as extreme weather and vandalism. It also covers theft.

Uninsured/Underinsured Motorist Coverage

Uninsured/Underinsured covers your expenses when you’re in an accident with an at-fault driver who doesn’t have insurance, or who doesn’t have enough insurance to cover the damages.

Top Cheapest Car Insurance Providers in Mississippi

Based on data from multiple sources, here are the top insurance providers offering some of the cheapest average rates in Mississippi for 2025:

Source: Cheapest Car Insurance in Mississippi for 2025 (US News)

Compared to the state averages of $695 for annual minimum coverage and $2,371 for annual full coverage, these insurance providers offer more affordable options.

USAA consistently provides the cheapest rates for eligible drivers, such as military personnel and their family members. For the non-military community, Progressive and State Farm offer the next best rates for minimum and full coverage.

Cheapest Mississippi Car Insurance Based on Driver Profiles

Insurers consider different aspects of your driver profile to determine your car insurance premiums. The most common factors they examine are age, driving history, credit score, and sometimes, annual mileage.

Insurers can offer more competitive rates for specific driver demographics. Here’s a look at the best options based on several common driver profiles:

1. Teen Drivers (17-Year-Olds)

Teen drivers tend to face higher premiums due to their limited driving experience. However, multiple insurers offer more affordable rates for this age group. These are among the cheapest options for teenagers:

• USAA: They have the lowest average annual rate for female teens at $3,543 annually.
• Southern Farm Bureau: They have the next cheapest options for teens who do not qualify for USAA, with an average rate of $3,723. Southern Farm Bureau is also the cheapest for male teens at $3,758

Both of these options are thousands of dollars below the statewide average of $7,717 for teenagers. Young drivers can further reduce their premiums by taking advantage of discounts such as good student discounts, since many insurers offer reduced rates for students who maintain a high GPA. Teens can also get discounts by completing a driver’s education course.

2. Young Adults (25-Year-Olds)

Young adults receive better premiums than teens because they have more experience on the road. Therefore, many insurers offer good rates to compete in the voluntary market.

However, the cheapest are the following companies:

• National General: At $1,377 for females and $1,512 for males, National General is the cheapest option for drivers in this age group.
• USAA: They come in second cheapest for this age group, with average rates of $1,461 and $1,602 for females and males, respectively.

3. Senior Drivers (60-Year-Olds)

Senior drivers often receive the lowest average rates among other age groups. Therefore, drivers who are above 60 can find competitive insurance rates with the best coming from:

• National General: $865 per year for females and $989 per year for males.
• USAA: $1,045 per year for females and $1,057 for males.

4. Drivers With a Clean Record

Insurers often offer lower premiums to drivers with no traffic violations or accidents on their record. These drivers are considered lower risk and, as a result, qualify for cheaper car insurance rates.

Some of the best insurance companies for drivers with a clean record are:

• National General: $1,123 annually.
• USAA: $1,231 annually.

Maintaining a clean driving record is one of the best ways to keep your car insurance premiums low over the long term. Many providers also offer safe driver discounts to drivers with a record of accident-free driving.

5. Drivers With Poor Credit

In Mississippi, your credit score can have an impact on your car insurance premiums. Drivers with lower credit scores typically pay more for car insurance, as providers view them as higher risk.

The statewide average for drivers with poor credit is $3,775 per year. But there are more affordable options for this group, including:

• National General: $1,634 annually.
• USAA: $2,4530 annually.

Improving your credit score over time can lead to substantial savings on car insurance. Therefore, consider taking steps to reduce your outstanding debts and pay bills on time to improve your score gradually.

6. High-Risk Drivers (DUI, At-Fault Accidents, Speeding)

High-risk drivers, such as those with at-fault accidents or DUIs, will typically face higher insurance premiums. However, there are still some companies that offer competitive rates for high-risk drivers:

• USAA: $1,597 annually with one speeding ticket.
• USAA: $1,853 annually with one accident.
• State Farm: $1,770 annually with one DUI.

For high-risk drivers, completing a defensive driving course or participating in other rehabilitative driving programs may help lower premiums over time.

Tips for Lowering Your Car Insurance Costs in Mississippi

If you’re looking to reduce your car insurance premiums, here are some proven strategies to help you save money:

1. Shop Around for Quotes: Never settle for the first option. Instead, compare quotes from multiple insurance providers to find the best rates. Each insurer calculates risk differently, so rates can vary widely from company to company.
2. Bundle Your Insurance Policies: Many insurance companies offer discounts if you bundle car insurance with other types of insurance, such as homeowners' or renters'.
3. Raise Your Deductible: Choosing a higher deductible can lower your monthly premium. Just be sure you can afford the out-of-pocket cost if you need to file a claim.
4. Look for Discounts: Insurance companies offer various discounts, such as safe driver and good student discounts. You can also receive money-saving discounts for installing safety features, such as anti-collision systems, in your vehicle.
5. Maintain a Good Credit Score: Improving your credit score over time may lead to lower insurance premiums. Consider strategies such as credit counseling and debt management plans to improve your credit score.
6. Enroll in Usage-Based Insurance: Some companies offer usage-based insurance programs that track your driving habits. If you drive safely and don’t log a lot of miles, you could qualify for lower rates.

Frequently Asked Questions

What Is the Average Cost of Car Insurance in Mississippi?

The average cost of car insurance in Mississippi is around $2,371 per year for full coverage and $695 per year for minimum coverage.

Which Car Insurance Company Offers the Cheapest Rates in Mississippi?

USAA, National General, and Progressive offer some of the lowest rates in Mississippi, with USAA providing an average of $418 annually for minimum coverage.

How Can I Lower My Car Insurance Rates in Mississippi?

You can lower your rates by comparing quotes, bundling policies, increasing your deductible, and taking advantage of discounts such as good driver or good student discounts.

How Do Car Insurance Rates In Mississippi Differ for High-Risk Drivers?

High-risk drivers, such as those with DUIs or at-fault accidents, will face higher premiums. The statewide average for drivers with one speeding violation is $2,471. That for drivers with one accident is $3,047, and for those with one DUI is $3,412. However, companies like USAA and State Farm offer competitive rates for high-risk drivers.

What Are the Minimum Car Insurance Requirements in Mississippi?

Mississippi law requires drivers to carry at least $40,000 in bodily injury liability per person, $80,000 per accident, and $40,000 in property damage liability per accident.

Is Mississippi a No-Fault State?

Mississippi is not a no-fault state. Therefore, drivers do not need PIP insurance. Instead, if you cause an accident, your bodily injury liability insurance pays for the injuries you cause to the other driver.