After years of steady hikes, Mississippi auto insurance rates are beginning to stabilize, with more than a dozen companies approving rate decreases this year that could affect around 80% of drivers.
The reductions 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 rates, approved overall decreases ranging from 14 cents to $14.20 per $100 of coverage for over 13 insurers, including State Farm, Allstate, Progressive, Nationwide, and Farm Bureau.
State Insurance Commissioner Mike Chaney said the decreases could signal a more balanced market:
“I think the decreases are going to cover about 80% of automobiles in the state. You’re talking about some major relief when you consider 1.3 million automobile policies are impacted.”
The average Mississippi driver spent nearly 4% of annual income on auto insurance in 2025, higher than in 41 other states. The average yearly premium is now $2,149, about $489 less than the national average.
Independent agent Stewart Deen of The Nowell Agency in Hattiesburg said insurers appear more stable as inflation slows, and many are now offering more competitive rates to attract new business:
“Before … when the monthly bill changes 20% or even the six-month bill changes 20% — when you’re not prepared for that, it’s pretty tough. I think those monthly prices will stabilize.”
For Hattiesburg resident Jennifer Brewer, years of rate increases forced adjustments in her budget:
“I help take care of my two grandkids, so we’ve had to cut back … because you’ve got to have insurance. I just did away with cable TV and don’t eat out as much.”
Deen noted that stabilization does not necessarily mean lower rates but may result in less dramatic increases in the future:
“Every company is different. Every situation is different. It’s not a one-size-fits-all answer, but it’s definitely a time to reevaluate your situation.”
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