Mississippi Insurance Commissioner Mike Chaney confirmed that coastal property insurance rates will increase by 16% starting Jan. 1, 2026, due to legislative changes affecting the state’s windpool. At the same time, auto insurance premiums are falling across the state, according to BestWires.
Speaking at the Neshoba County Fair on July 30, Chaney said more than 1.1 mn drivers in Mississippi have seen their auto insurance costs drop between 1% and 7% since 2024. He attributed the downward trend to stronger market competition.
We’ve got another filing that came in Monday for another 120,000 drivers, and rates will drop 3.8%. I will approve that one. I can guarantee you that.
Mississippi Insurance Commissioner Mike Chaney
While auto policyholders are benefiting from a competitive market, property owners along the Gulf Coast face rising premiums under the Mississippi Windstorm Underwriting Association.
“Since 2005, we’ve spent over $400 mn to suppress rates on the Gulf Coast by purchasing reinsurance,” Chaney said. “That’s not sustainable. We need a better model. And we have one.”
He pointed to mitigation and stronger building codes as long-term solutions. Building homes outside flood zones, reinforcing roofs, and following modern construction standards, he argued, reduce risk and ultimately bring down insurance costs.
Chaney said the state had made progress through the Strengthen Mississippi Homes grant program, which funded retrofits and hardening measures.
But following a special legislative session, the Mississippi Insurance Department lost its spending authority, and he shut down the program on July 1.
Mississippi is now the only coastal state without a state-audited, insurance department-run mitigation initiative. Chaney criticized the decision as short-sighted.
“That’s not just disappointing, it’s dangerous,” he said. “It’s bad public policy that will cost homeowners.”
The grant program, funded by insurers—not taxpayers—completed 29 retrofits in June. Chaney projected over 100 additional homes would have been completed by year-end had the program continued.
He contrasted Mississippi’s stalled effort with Alabama’s, which has completed over 55,000 home-hardening projects. As a result, Alabama property owners now pay 20% to 40% less in premiums than their Mississippi counterparts.
“Where do you think people will go if insurance keeps going up?” he asked. “Out of state.”
Chaney closed his remarks with a reelection announcement for 2027.
“I intend to keep doing the job you elected me to do,” he said. “Insurance affects every life—and every wallet—in this state and in this country.”
