Post Date February 24, 2012 – Mississippi is seeking to improve the current car insurance system with a less complex low-cost auto insurance protection policy.  According to those opposed to the bill feel changes will definitely change the current auto insurance system.  Mississippi has a tort based auto insurance system with a liability policy for accidental damage to third-party vehicles or property.  The system stipulates that drivers responsible for at fault accidents can only compensate accidental damages up to the limit of their car insurance liability policies.  Such factors include the amount of liability insurance carried by the other driver,  and their financial resources and the car insurance carrier.  Two victims of similar car accidents can receive different compensation depending on the prevailing circumstances of the case. The states mandated liability car insurance does not cater for single vehicles car crashes.

The proposed legislation seeks to dispose of current system and replace it with PIP insurance coverage.  The PIP policy system will provide close to $15,000 that will cater for:

• Medical treatment compensation for hospital bills not exceeding the policyholders PIP limits.
• Compensation for loss of income during the period of incapacitation.
• Reimbursement for spare parts and similar parts replacement services.
• Benefits to the next of kin in case of death.

PIP coverage will also require drivers to fork out about $10,000 for property damage coverage. Motorists will have a chance to adjust their coverage limits depending on preference and type of vehicle owned.  In many states, PIP and liability insurance go hand in hand for all motorists.  Drivers in the Mississippi will have a joint system, whereby PIP and tort liability operate together. In a situation where car accidents where one driver may not have PIP, his/her liability insurance policy will settle for damages incurred. Failure to settle claims due to insufficient PIP limits makes at fault drivers culpable for law suits from the aggrieved driver.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
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