Auto Insurance Basics: Nebraska's Minimum Requirements

Nebraska requires drivers to carry a minimum level of auto insurance, which includes liability coverage and uninsured/underinsured motorist coverage. The minimum requirements for liability coverage are $25,000 per person and $50,000 per accident for bodily injury, and $25,000 per accident for property damage. The minimum requirements for uninsured/underinsured motorist coverage are the same. Nebraska operates under a 'fault' system, meaning that the driver responsible for an accident is also financially responsible for any resulting harm.

Liability coverage minimums

In Nebraska, drivers must carry a minimum of $25,000 in bodily injury liability coverage per person, with a maximum payout of $50,000 per accident. This means that if you injure someone in a car accident, your insurance will cover their medical bills and lost wages up to $25,000 per person, with a total limit of $50,000 if multiple people are injured. This coverage also includes pain and suffering and kicks in if any family member is driving your vehicle or if you've given someone permission to use it. It also covers you if you get into an accident in a rental car.

In addition to bodily injury liability coverage, Nebraska drivers are also required to have a minimum of $25,000 in property damage liability coverage per accident. This means that if you damage someone else's property in a car accident, your insurance will cover the cost of repairs or replacement up to $25,000.

It's important to note that liability coverage only pays for the other party's expenses in an accident that is your fault. It does not cover your own injuries or vehicle damage. If you want your own car to be protected, you would need to add extra coverage options, such as collision coverage or comprehensive insurance.

While the minimum coverage requirements in Nebraska can protect you from financial ruin if you're in a minor accident, it's important to consider increasing your coverage limits to ensure that you're fully protected. The minimum property damage limit of $25,000, for example, is just shy of the average cost of a new vehicle. If you cause extensive damage to someone's property, you could quickly exceed this limit and be held financially responsible for the remaining amount.

Nebraska also requires drivers to have uninsured/underinsured motorist coverage with minimum limits of $25,000 per person and $50,000 per accident for bodily injury. This coverage pays for injuries and lost wages that you or your passengers may suffer if you are in an accident with an uninsured or underinsured driver who is at fault.

Uninsured motorist coverage

In Nebraska, uninsured motorist coverage is a legal requirement. This type of insurance coverage is necessary for when the policyholder or other covered individuals, such as a passenger or someone driving the car with permission, are injured in an accident caused by an uninsured driver. The minimum coverage requirements for uninsured motorist coverage in Nebraska are:

• $25,000 for injury or death of one person in any one accident caused by an uninsured driver
• $50,000 for injury or death of two or more people in any one accident caused by an uninsured driver

Underinsured motorist coverage is also required in Nebraska, with the same minimum coverage as uninsured motorist coverage. This type of coverage helps to fill the financial gap between the at-fault driver's policy limits and the value of the losses incurred in the car accident.

Both uninsured and underinsured motorist coverages are mandated by the Nebraska Revised Statute 44-6408, which allows insurers to offer policies with higher coverage limits of up to $100,000 per person and $300,000 per accident. It is important to note that these coverages only apply to "bodily injury, sickness, disease, or death" and do not include vehicle damage caused by an uninsured driver.

Underinsured motorist coverage

Nebraska requires motorists to carry underinsured motorist coverage, which is designed to compensate drivers for injuries sustained in an accident with an underinsured driver. The minimum coverage requirements for underinsured motorist coverage in Nebraska are:

• $25,000 per person and $50,000 per accident for bodily injury.
• Underinsured motorist coverage does not include property damage.

It's important to note that underinsured motorist coverage does not include property damage caused by an underinsured driver. If you want your own vehicle to be protected in the event of an accident, you would need to add additional coverage options, such as collision coverage.

In Nebraska, if you are found to be driving without insurance, you will face penalties, including a fine of at least $50 and the suspension of your license until you can show proof of insurance. Therefore, it is crucial to ensure that you have the required minimum coverage, including underinsured motorist protection, to protect yourself financially and legally in the event of a car accident.

Proof of financial responsibility

In Nebraska, "proof of financial responsibility" must be provided for all vehicles registered in the state and kept in the vehicle at all times. This proof must be shown at the request of any law enforcement official.

There are several ways to demonstrate proof of financial responsibility:

Certificate of Insurance

The Certificate of Insurance must be issued by an insurance company authorised to operate in Nebraska and must be the original document. Photocopies are not accepted, but evidence of insurance can be displayed electronically on a device. The certificate must include:

• The name of the insurance carrier
• The make of the vehicle
• The model of the vehicle (e.g. Ford "Mustang") and/or the last three digits of the Vehicle Identification Number
• Effective and expiration dates of the liability coverage

Bond Issued by a Surety Company

A bond issued by a surety company authorised to do business in Nebraska can be used as proof of financial responsibility. The bond must be for the payment of up to $75,000 and filed with the Department of Motor Vehicles. It cannot be cancelled except after ten days' written notice to the Department.

Certificate of Deposit or Money or Securities

A certificate of deposit or money or securities is issued by the State Treasurer when a person deposits $75,000 in cash or securities into the State Treasurer's office. This certificate must bear the Department of Motor Vehicles Seal to be valid.

Certificate of Self-Insurance

A Certificate of Self-Insurance can be issued by the Nebraska Department of Motor Vehicles. This certificate must also bear the Department of Motor Vehicles Seal to be valid. To qualify for self-insurance, an applicant must have a minimum of 26 registered vehicles and meet other requirements.

Penalties for driving without insurance

Driving without insurance in Nebraska is a serious offence and can result in various penalties. Firstly, it is important to note that Nebraska requires all drivers to carry certain levels of car insurance and proof of this coverage must be available when driving. If a driver is pulled over by law enforcement, they must be able to show proof of insurance when requested.

If a driver is found to be driving without insurance in Nebraska, they will be charged with a Class II misdemeanour and will face the following penalties:

• A fine of at least $50
• Suspension of their driver's license until proof of insurance can be shown
• Filing of an SR-22 certificate, which proves the driver has the minimum required auto insurance
• Reinstatement fees for the driver's license and vehicle registration, which are $50 each

If a driver is caught without insurance at a traffic stop, their license and registration will be suspended unless they can provide proof of active insurance within 10 days. If they are unable to do so, they will need to pay the reinstatement fees and may also need to purchase a new insurance policy or obtain an SR-22 certificate to have their driving privileges reinstated.

In the event of an accident, the penalties for driving without insurance can be even more severe. If a driver is found at fault for the accident and does not have insurance, they may be personally responsible for all the resulting costs, including medical bills and repair costs for the other party. This can result in significant financial burden and even bankruptcy.

Additionally, driving without insurance in Nebraska can lead to an increase in car insurance premiums when the driver obtains insurance. It is important to note that Nebraska has an electronic verification database to monitor the insurance status of its drivers, making it difficult to avoid the consequences of driving without insurance.

Frequently asked questions