Car Insurance in Nebraska

Nebraska Car Insurance

Nebraska requires you to have car insurance in order to help make sure that you can pay for costs when unfortunate incidents arise, such as car accidents. This focus on insurance has paid off. Nebraska is well below the national average for uninsured drivers.

Read more to learn all about Nebraska car insurance laws, how you can help keep car insurance fraud down, and how prices are determined within the state.

Nebraska Car Insurance Requirements

In order to be compliant with Nebraska's car insurance laws, you must have liability insurance. This helps cover costs towards injury and property damage suffered by others in a car accident you cause.

In Nebraska, your car insurance policy must meet at least these following liability coverage minimums per accident:

• $25,000 for bodily injury, per person.
• $50,000 for total bodily injury if multiple people are hurt.
• $25,000 for property damage.

Optional Coverage

Some drivers may find that simply meeting the Nebraska car insurance minimum requirements does not protect them as completely as they would like. This is especially true when you consider that liability coverage does not help you pay for your own injuries or property damage.

Consider purchasing one or more of these common coverage types for more peace of mind:

• Collision – This will help you with costs from damages to your car after a traffic accident.
• Comprehensive – This will help you pay non-accident-related damages to your car, including those from weather events and fire.
• Medical payments – This will help you pay for your medical care if you are hurt in a car accident.
• Uninsured motorist – While Nebraska is not known for having a high rate of uninsured drivers, they are still on the road. This coverage will help pay for your costs after an accident with one of these uninsured drivers.

NOTE: Collision and comprehensive coverages are often required as part of a car loan or lease agreement.

Car Insurance Violations

In Nebraska, you are required to have proof of insurance with your car at all times. Proof of insurance is most commonly in the form of an insurance ID card issued to you by your car insurance company.

If you are caught driving without proof of insurance or without any car insurance at all, you face penalties that can include:

• Fines.
• Driver's license suspension.
• License revocation.
• Assessment of violation points to your driving record.

Nebraska Automobile Insurance Plan

Car insurance companies have the right to deny coverage to drivers who pose an unnecessary risk to them. These drivers include those with poor driving histories or those who've file multiple accident claims.

As a way to guarantee that all drivers can obtain car insurance even if they have a high-risk status, Nebraska car insurance companies must participate in the Nebraska Automobile Insurance Plan.

Through the plan, car insurance companies within Nebraska share the risk of providing insurance to those who can't find insurance on the open market.

You can apply to the plan through any licensed car insurance agent or company in the state. Note that rates through the plan are higher than average, so it's best to do a thorough search for a provider before using this option.

Other Car Insurance Issues

The Nebraska Department of Insurance (NDOI) handles several issues involving car insurance. Two main issues the NDOI deals with are consumer complaints and insurance fraud.

Consumer Complaints

If you have an issue with your car insurance company, the NDOI recommends that you attempt to resolve the issue directly with the company.

If you cannot resolve your issue with your car insurance company, you can file a complaint with the NDOI.

If you have supporting documents with your complaint, or your complaint involves a health or injury claim, you must print out a Consumer Affairs Division Complaint Questionnaire (Form DOI-4000) and mail it to:

Nebraska Department of Insurance
P.O. Box 95087
Lincoln, NE 68501

Otherwise, you can file your complaint online at the NDOI website.

Insurance Fraud

Every year, insurance companies lose a lot of money due to insurance fraud. Consumers pay for these losses through increased premiums.

You can help fight insurance fraud by reporting suspected fraud to the NDOI.

Car insurance fraud often involves:

• Staging of car accidents.
• Falsifying or exaggerating injuries.
• Falsifying or exaggerating property damage.

You can report suspected car insurance fraud to the NDOI by downloading and completing a Suspected Fraudulent Claim Referral form and sending it by one of the following methods:

• By fax to (402) 471-4610.
• By mail to:
  • Insurance Fraud Prevention Division
  • P.O. Box 95087
  • Lincoln, NE 68501

Determining Your Car Insurance Rates

There are several reasons why your NE car insurance premium costs what it costs.

When shopping for car insurance, keep in mind that the following may factor into your rates:

• Your driving record.
• Your car's:
  • Make.
  • Model.
  • Year.
• Your credit history.
• Your zip code.
• Your age.
• Your gender.
• Your marital status.
• The chosen deductibles:
  • This is the amount you have to pay towards a claim before your insurance will start paying out.
  • The higher your deductible, the lower your premium.

Insurance Discounts

One of the best ways to save on car insurance is to take advantage of discounts.

Some common car insurance discounts in Nebraska include:

• Good driver discount.
• Good student discount.
• Multi-policy discount.
• Anti-theft device discount.
• Safety device discount.

While discounts can save you money on car insurance, the best way to get low-cost car insurance is to keep a clean driving record.

Nebraska Car Insurance FAQs

Can someone drive my car if they are not on my insurance in Nebraska?

Yes, someone else can drive your car in Nebraska, even if they are not listed on your insurance. In Nebraska, insurance follows the car, not the driver, so they should be covered in the event of an accident, as long as you gave them permission to drive the vehicle. However, it is best practice to add any members in your household who are of driving age to your policy if they will regularly have access to your car.

What are the minimum requirements for auto insurance in Nebraska?

Nebraska requires drivers to maintain minimum liability insurance coverage of 25/50/25—$25,000 bodily injury to one person, $50,000 for total bodily injury per accident, and $25,000 for property damage.

Do you need insurance to register a car in Nebraska?

Yes, you need insurance to register a car in Nebraska. You must show proof of financial responsibility when applying for a Nebraska car registration.

Is it illegal to not have car insurance in Nebraska?

Yes, it's illegal not to have car insurance in Nebraska. If you're found driving without insurance, you face fines and a suspension of your registration and/or license.

What happens if an uninsured driver hits you in Nebraska?

If you're in an accident with an uninsured driver, your optional uninsured driver coverage could help cover the costs of the damage, but only if you've added that coverage to your policy. If you don't have uninsured driver coverage, your likeliest option is to sue the driver personally for damages.