To legally comply with the state's financial responsibility requirements, you must provide proof of insurance for your vehicle. For most drivers this means liability insurance.

Ways to Establish Financial Responsibility

The state gives you several options for meeting your financial responsibilities. You can:

• Make a cash deposit in the amount of $75,000 with the State Treasurer.

• Obtain a certificate of self-insurance. You must have a minimum of 26 cars registered under your name to qualify for this option.

• Obtain a surety bond with a company authorized to operate in Nebraska, or a bond with at least two individual sureties who each own real estate within the state.

• Purchase a liability insurance policy.

Nebraska Liability Insurance Requirements for Private Passenger Vehicles

Here are the minimum amounts of liability insurance you must carry:

• $25,000 per person per accident

• $50,000 per accident bodily injury

• $25,000 per accident property damage

The following are exempt from liability insurance:

• Dealer-plated vehicles

• 30-day plated vehicles

• Boats

• Snowmobiles

• All trailers

• Campers on the back of trucks (the truck, however, must be insured)

Be sure to scout different quotes from different carriers. This will increase your chances of finding a rate that doesn't cause you to sweat your budget. And don't forget that you always have the green light to increase your protection through additional types of coverage.

Proof of Insurance and Financial Responsibility

If a law enforcement official asks for proof of insurance you must provide one of the following:

• A certificate of self-insurance issued by Nebraska's Department of Motor Vehicles (DMV).

• Proof of a surety bond.

• A certificate of the State Treasurer as proof of a cash bond.

• An insurance identification card, supplied by your carrier.

Penalties for Failure to Maintain Financial Responsibility

• You'll get hit with a fine of up to $500.

• Suspension for both your license and registration. For reinstatement you'll need to file an SR-22 with the Department of Motor Vehicles (DMV), resulting in higher insurance premiums.

For more information about financial responsibility, contact the DMV's Financial Responsibility Division at (402) 471-3985.