When purchasing automobile insurance in Mississippi you have, basically, two choices. You can choose to purchase just the minimum liability insurance that the state of Mississippi requires, or you can choose to purchase a full coverage insurance policy.

What's the difference?

The minimum auto insurance that the state of Mississippi requires is a 25/50/25 liability-only policy. What this means is that your policy will pay a maximum of $25,000 in medical bills for any one individual who is injured as a result of an accident with your vehicle, with a maximum of $50,000 in medical payments for all people involved in the accident, regardless of how many people are involved and regardless of the extent of their injuries. Additionally, your minimum liability policy will pay a maximum of $25,000 for the repair or replacement of the other party's property (typically their vehicle).

In a serious accident a minimum liability policy may not cover all medical costs or all property damage related to an accident. In that case you may be held personally responsible for any unpaid amounts, which could, potentially, put your home or your savings account or any other assets you have at risk.

For this reason many people who purchase just liability insurance will purchase a policy with higher limits - at a higher monthly premium cost, naturally.

Liability insurance alone pays nothing, however, toward the repair or replacement of your vehicle and may not pay medical bills for you or anyone in your vehicle, particularly if you are deemed to be at fault in the accident.

If you want to be fully protected then you will need to purchase a full coverage automobile insurance policy. To get full coverage you will need to purchase a liability policy plus a collision policy plus a comprehensive policy plus a personal injury protection policy plus uninsured motorist coverage. Each type of policy protects you from something different.

Your collision policy protects your vehicle if you strike another vehicle or if you run into a tree or a lamppost or some other stationary object.

Your comprehensive policy pays for the repair or in some cases the replacement of your vehicle if it is stolen or if it is vandalized or if it is damaged by natural causes such as wind or flooding or fire. Your comprehensive insurance is the one that pays for the repair of your vehicle if you run into a deer or other large animal.

Keep in mind that in most cases your collision or comprehensive insurance will not pay any more than the current Kelly Blue Book value of your vehicle - not the replacement cost.

Your personal injury protection insurance pays your medical bills and the medical bills of anyone in your vehicle at the time of an accident, regardless of who is at fault in the accident.

Uninsured motorist protection pays for the repair of your vehicle and for medical costs for you or anyone in your vehicle if you have an accident with a motorist who does not have insurance.

If your vehicle is being financed your lender will require that you purchase full coverage auto insurance, but even if you aren't dealing with a lender you still may choose full coverage automobile insurance simply for the peace of mind it provides - not to mention the asset protection.

Whether you are buying basic liability insurance or a full coverage policy, you are likely to find the best deal through one or more of the online auto insurance price comparison websites.