In the world of auto insurance, the news of a rate decrease is a reason to celebrate. For drivers across the state of Mississippi, the search for affordable and reliable coverage is a top priority. Auto Quote Tracker uncovered a finding from a major provider that could help many with their search for a better deal.
Direct Insurance was recently approved to lower its auto insurance premiums by 10.6%. This change will go into effect for renewal business starting on October 3, 2025, impacting an estimated 40,402 policyholders. That’s a total savings of over $8.7 million across the state, or $241 per policyholder.
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Understanding the Factors Behind Premium Changes
Getting news of an insurance decrease is a great time to understand why rates fluctuate in the first place. Insurance premiums are dynamic figures that constantly adjust based on a multitude of factors, reflecting the insurer’s cost of doing business. While we’re talking about a decrease here, the same underlying principles explain why rates might go up at other times.
- Claims Experience: The overall number and cost of claims filed in a particular area is a primary factor. A decrease in accidents, thefts, or other claims in Mississippi can lead to a positive adjustment like the one from Direct General. Conversely, a spike in claims can cause rates to increase.
- Economic Trends: Inflation has a direct impact on insurance costs. When the price of vehicle parts, labor for repairs, and medical care for injuries rises, insurers must pay more to cover a claim. Changes in these costs are reflected in premium adjustments.
- Competition in the Market: The competitive landscape of the insurance industry also plays a role. In a market where insurers are vying for customers, a company might lower its rates to attract new policyholders or reward existing ones for their loyalty.
- Regulatory Changes: State-specific laws and regulations can influence how insurers calculate their rates. Any changes to minimum coverage requirements or other industry rules in Mississippi can lead to a necessary adjustment in premiums.
These adjustments are a normal and necessary part of the insurance business, allowing companies to accurately manage risk and maintain their financial stability to pay out claims when their customers need them most.
Your Guide to Finding Affordable Car Insurance
Even with this good news, it’s a great time for all drivers in Mississippi to review their policies. A rate change is a perfect trigger to be proactive and ensure you’re getting the best possible deal. Here are some actionable tips to help you save money on your policy.
1. Shop Around for Quotes
Don’t assume that because one company is lowering rates, it has the best price for you. The most effective way to find savings is to compare quotes from multiple insurers. Different companies have different pricing models, and one might offer a much better rate for your specific driver profile. You can even use online quote comparison tools to do the shopping for you.
2. Adjust Your Coverage and Deductibles
Take a close look at your current policy. Do you still need full collision and comprehensive coverage on an older car that’s paid off? Consider dropping or adjusting these coverages to save on your premium. You can also lower your rates by increasing your deductible, which is the amount you pay out-of-pocket before your insurance kicks in. Just make sure you have enough in savings to cover the higher deductible if you need to file a claim.
3. Take Advantage of Discounts
Most insurance companies offer a variety of discounts, and you may not be taking advantage of all of them. Call your insurer and ask for a complete list of their discounts. Some common ones include:
- Multi-Policy Discount: Bundling your auto and home or renters insurance with the same company can lead to significant savings.
- Good Student Discount: Many insurers offer a discount for young drivers who maintain a certain GPA.
- Safe Driver Discount: Having a clean driving record with no accidents or violations can lead to a lower premium.
- Vehicle Safety Features: If your car has features like anti-lock brakes, anti-theft devices, or advanced driver-assistance systems, you may be eligible for a discount.
- Telematics Programs: Many insurers offer programs that use a device or app to monitor your driving habits, rewarding safe driving with a discount.
4. Maintain a Strong Credit Score
In Mississippi, your credit history can be a factor in determining your insurance rate. Insurers often use a credit-based insurance score to help assess risk. By paying bills on time and responsibly managing your credit, you can improve your credit score, which may help you secure a lower insurance premium.
Secure Affordable Coverage for the Long Haul
Getting affordable car insurance is one thing, but keeping costs down is another. Sign up with Auto Quote Tracker to get notified whenever your rates are set to change– so you know when to shop around for the best deal.
