After years of steady hikes, Mississippi auto insurance rates are showing signs of stabilizing, with more than a dozen companies approving decreases this year that could affect 80% of drivers.
The decreases mark a shift from a nationwide surge that pushed auto insurance costs up more than 50% since 2022, according to federal data. The Mississippi Department of Insurance, which regulates insurance rates, approved overall decreases of 14 cents to $14.20 per $100 of coverage for more than 13 companies, including State Farm, Allstate, Progressive, Nationwide and Farm Bureau.
State Insurance Commissioner Mike Chaney said the decreases could signal a more balanced market. Rate stabilization occurs when insurance companies collect enough in premiums to cover claims and operating expenses.
“I think the decreases are going to cover about 80% of automobiles in the state,” he said. “You’re talking about some major stuff when you talk about 1.3 million automobile policies going down.”
Drivers feel the pinch, seek stability
The average Mississippi driver spent nearly 4% of annual income on auto insurance in 2025 — a higher share than in 41 other states, according to Bankrate. The average yearly premium is now $2,149 — $489 less than the national average.
Independent agent Stewart Deen of The Nowell Agency in Hattiesburg said insurers appear more stable as inflation has slowed, and many are now trying to bring in new business with more attractive rates.
Hattiesburg resident Jennifer Brewer said she’s seen her auto insurance costs continue to increase, a factor that now plays into her monthly budget. After cutting cable television and a few meals dining out, she’s resolved to shop around for a better rate. (RHCJC News)
“I think those monthly prices, what you’ve kind of gotten used to, will stabilize,” Deen said. “Before … when that monthly bill changes 20% or even the six-month bill changes 20% — when you’re not prepared for that, that’s pretty tough.”
For Hattiesburg resident Jennifer Brewer, years of increases means cutting back in other areas. She said her premiums rose $50 in the past six months.
“I help take care of my two grandkids, so we have to take away … because you’ve got to have insurance,” she said. “I just did away with cable TV, stuff like that. I don’t eat out as much.”
Deen said stabilization doesn’t necessarily mean lower rates — only that future increases may be less jarring.
“Every company is different. Every situation is different. They file for rates for different times,” he said. “It’s not a one-size-fits-all answer, but it’s definitely a time to … reevaluate your situation.”
High repair costs, inflation fueled hikes
Chaney said insurers raised rates in recent years to offset pandemic-era losses and higher costs for cars and repairs.
“The price that repair shops, what we call body shops, were charging — they went up from $65 to $85 an hour, and also by the cost of the technology of the chips that go into a car if they have a wreck, the cameras,” Chaney said. “Take a Dodge Ram Pickup — in 2020 it might have cost you $35,000. Today, it’s $55,000.”
He said uncertainty around tariffs makes future predictions difficult but said his department is unlikely to approve company rate increase requests based on tariffs.
For Mississippi drivers looking to reduce premiums, Chaney advised shopping around for the best option — a conclusion Brewer has already reached.
“You got to have (insurance), it’s not an option. So, you just pay whatever they tell you and keep going. And in my life, I’m busy; working, trying to take care of everybody and so there’s hardly any time to shop around,” Brewer said. “But I just said the other day, I’m going to shop around, because this is ridiculous.”
This report was produced by the Roy Howard Community Journalism Center at the University of Southern Mississippi.
