Understanding Liability Coverage and How Insurance Companies Try to Minimize Payouts

Mississippi law requires drivers to carry minimum auto insurance to cover damages in the event of an accident. While these requirements are meant to protect injured victims, insurance companies often try to limit payouts by shifting blame, disputing medical claims, and pressuring victims into quick settlements. Knowing how liability coverage works and understanding the tactics used by insurance companies can help victims protect their rights and secure the compensation they deserve.

Mississippi’s Minimum Auto Insurance Requirements

Mississippi operates under a fault-based system, meaning that the driver responsible for an accident is liable for covering damages. The state requires all drivers to carry the following minimum insurance coverage:

• $25,000 per person for bodily injury
• $50,000 per accident for bodily injury when multiple people are injured
• $25,000 per accident for property damage

While these limits provide some protection, they may not be enough to cover serious injuries, lost wages, or extensive vehicle damage. If an at-fault driver carries only the minimum coverage, an injured victim may need to seek additional compensation through their own uninsured/underinsured motorist (UM/UIM) coverage or take legal action against the responsible driver.

How Mississippi’s Insurance Laws Affect Accident Claims

Because Mississippi follows an at-fault system, injured victims typically file claims with the at-fault driver’s insurance company. However, insurers are not eager to pay full compensation. They often attempt to deny claims, argue that injuries existed before the crash, or offer quick settlements that do not cover future expenses.

Understanding how insurers operate and taking the right steps after an accident can help victims avoid common pitfalls and secure the compensation they deserve.

How Insurers Use Pre-Existing Conditions to Deny Claims

Insurance companies frequently argue that injuries were not caused by the accident but were instead pre-existing conditions. This tactic is used to reduce or deny payouts. For example, if a victim has a prior back injury and suffers a new back injury in a crash, the insurer may claim that the pain was not caused by the accident but was a result of the old injury.

How to Protect Your Claim from Pre-Existing Condition Disputes

1. Seek Immediate Medical Attention – Having medical records that document injuries right after an accident helps establish that they resulted from the crash, not a previous condition.
2. Follow All Medical Advice – Skipping doctor appointments or delaying treatment can give insurers more leverage to argue that the injury is unrelated or exaggerated.
3. Do Not Give Recorded Statements Without Legal Representation – Insurance adjusters may ask about past injuries and use any statements made against the victim later.
4. Obtain a Doctor’s Statement – A medical professional can clarify whether the accident worsened a pre-existing condition, making it eligible for compensation.

Mississippi law allows victims to recover damages even if they had pre-existing injuries, as long as the crash aggravated or worsened the condition. Having strong medical documentation and legal representation can counteract insurance company tactics and ensure fair compensation.

Common Insurance Tactics Used to Minimize Payouts

Insurance companies employ various strategies to pay as little as possible. Some of the most common tactics include:

• Blaming the Victim – Mississippi follows a pure comparative negligence system, meaning that if an injured victim is found partially at fault, their compensation is reduced. Insurers often try to shift blame to minimize payouts.
• Questioning the Severity of Injuries – Adjusters may argue that medical treatment was excessive or unnecessary to justify offering a lower settlement.
• Delaying Claims – Some insurers stall the process, hoping victims will become desperate and accept a lower offer.
• Using Recorded Statements Against Victims – Adjusters may ask misleading questions in recorded interviews, then use the answers to dispute the claim.
• Pressuring Victims to Accept Low Offers – Initial settlement offers are often far lower than what a victim deserves, and once accepted, the victim cannot seek additional compensation later.

Understanding these tactics and seeking legal representation can make a significant difference in the outcome of a claim.

The Risks of Quick Settlements and How They Can Cost You Money

Insurance companies often try to settle claims quickly before victims fully understand the long-term impact of their injuries. Accepting an early settlement can be risky because:

1. Future Medical Expenses May Not Be Covered – Some injuries require ongoing care, rehabilitation, or future surgeries that an initial settlement may not account for.
2. Lost Wages and Future Earning Capacity May Be Overlooked – If an injury affects a victim’s ability to work long-term, the financial impact can be significant.
3. Pain and Suffering Damages Are Often Undervalued – Insurers typically downplay non-economic damages, leaving victims without proper compensation for emotional distress and reduced quality of life.
4. Once You Accept a Settlement, You Can’t Seek More Compensation – Most settlements require victims to sign a release of liability, which means they forfeit the right to seek additional compensation later.

Mississippi law allows injured victims three years to file a personal injury lawsuit, giving them time to assess their damages fully. Rushing into a settlement can lead to significant financial losses, which is why consulting with an attorney before signing any agreement is essential.

Taking Legal Action to Secure Full Compensation

When insurance companies refuse to pay a fair settlement, legal action may be the best option. Filing a lawsuit allows victims to present medical records, expert testimony, and accident evidence to demand proper compensation. Even if a case does not go to trial, having legal representation increases the chances of negotiating a higher settlement.

Call For a Free consultation

If you have been injured in a car accident and need help understanding your rights under Mississippi’s insurance laws, the attorneys at Kellum Law Firm, P.C. can protect your interests. Call our Jackson office at (601) 969-2709 or our Port Gibson office at (601) 590-9000 to discuss your options and ensure you receive the compensation you deserve.

Mississippi Accident Claim Frequently Asked Questions

What happens if the at-fault driver doesn’t have enough insurance to cover my damages?
If the at-fault driver carries only minimum liability coverage, their policy may not fully cover medical bills, lost wages, and property damage. In this situation, victims can file a claim through their own uninsured/underinsured motorist (UM/UIM) coverage or pursue a personal injury lawsuit against the driver.

Can an insurance company deny my claim if I had a pre-existing condition?
Insurers often try to deny claims by blaming injuries on prior medical conditions, but they are required to compensate victims if the accident worsened a pre-existing injury. Medical records and expert testimony can establish that the crash made the condition more severe, making the victim eligible for compensation.

Why do insurance companies offer low settlements so quickly?
Insurers try to settle claims fast before victims understand the full extent of their injuries. They know that once a victim accepts a settlement, they cannot ask for more money later. It is always best to review settlement offers with an attorney to ensure that future medical needs and other damages are accounted for.

What should I do if the insurance company is delaying my claim?
Delays are a common tactic used to pressure victims into accepting lower payouts. If an insurance company is stalling, sending written requests for updates and seeking legal representation can help push the claim forward and prevent unnecessary delays.

How does Mississippi’s pure comparative negligence law affect my case?
If an insurer argues that a victim was partially at fault for an accident, the compensation may be reduced by that percentage. For example, if a victim is found 20% responsible, their total damages will be reduced by 20%. Having legal representation can help dispute unfair fault claims and secure a higher payout.

Can I still file a lawsuit if I already started settlement negotiations?
Yes, as long as a settlement agreement has not been signed, victims can still pursue legal action. Insurance companies often offer more money when they know a case could go to trial, making it important to have legal leverage before accepting any offer.

Call For Your Free Consultation

If you’ve been injured in a Mississippi car accident, understanding how police reports impact your claim is crucial. At Kellum Law Firm, P.C., our attorneys can guide you through the claims process and ensure your rights are protected. Contact our Jackson office at (601) 969-2709 or our Port Gibson office at (601) 590-9000 to discuss your options and secure the compensation you deserve.