Does MS allow alternative proof of financial responsibility?

On Behalf of | Jan 4, 2021 | Personal Injury |

As a fault-state, Mississippi requires drivers to carry liability insurance of at least 25/50/25. What this means is that if you get behind the wheel of a vehicle, you must have enough bodily injury insurance to cover at least $25,000 per person and $50,000 per accident, and sufficient property damage coverage to pay for at least $25,000 in damages per accident.

The easiest way to satisfy the state’s insurance requirements is with an auto insurance policy. However, according to Value Penguin, Mississippi does allow drivers to show alternative proof of financial responsibility.

Certificate of cash

A certificate of cash is one of the most common alternative means of proof of financial liability that Mississippi drivers use. Fairly easy to obtain, all you need to do is deposit $15,000 in cash with the State Treasurer. The treasurer will also accept deposits made in some other kind of securities with equal or greater value, such as a government note. If the treasurer confirms that you do not have any open judgments against you from previous accidents, he or she will issue the certificate.

Surety bond

For a surety bond to suffice as an alternate form of proof of financial liability, you must have a surety company issue you a bond for $75,000 that you can use only for at-fault accidents that result in property damage or bodily injury. While you do not have to pay premiums on the bond, if you end up needing to use it, the surety company can — and likely will — ask you to repay whatever payments it issued on your behalf.

Real estate bond

Obtaining a real estate bond is difficult for most people, making this alternative proof of insurance an unpopular choice. This method involves finding two real estate owners within the state who agree to serve as your sureties. Both individuals must file a real estate bond with the Department of Revenue, list their property on the bond as collateral and sign it. Together, both individuals must have at least $150,000 in stock or equity. If you use the bond and fail to make payments within 60 days, the surety company can seize the collateral property.

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