Auto insurance is a necessity for Nebraska drivers due to its multifaceted role in safeguarding all those on the roads. It bears legal protection and financial security and helps maintain overall economic stability within NE communities.
In Nebraska's auto insurance framework, the Nebraska Department of Motor Vehicles (NE DMV) and the Nebraska Department of Insurance (NE DOI) work to withhold the necessary protections for drivers to stay safe on the roads.
The NE DOI regulates insurance companies and agents, oversees policy compliance, and addresses consumer concerns. Their goal is to maintain fair and accessible auto insurance products.
Simultaneously, the Nebraska DMV verifies that all registered vehicles meet the state's minimum insurance requirements. Together, these two state agencies uphold the integrity of Nebraska's auto insurance market and deliver the appropriate safeguards for drivers.
What are the Auto Insurance Requirements in Nebraska?
In Nebraska, auto insurance is required for all drivers due to the state's fault-based liability laws. Specifically, vehicle owners must meet specific minimum insurance coverage requirements by law.
Nebraska drivers also have the option to purchase additional types of insurance to obtain more comprehensive protection beyond the legal minimums.
Minimum Auto Insurance Requirements in Nebraska
Vehicle owners in Nebraska must meet the specific minimum coverage requirements before hitting the road. These requirements are typically expressed using three numbers, such as 25/50/25, representing:
- $25,000 for bodily injury or death of one person in an accident
- $50,000 for bodily injury or death of two or more persons in any one accident
- $25,000 for property damage in any one accident
As outlined in the Nebraska Revised Statutes Section 60-3,167, this minimum liability coverage pays for the expenses of the other people involved, such as medical bills and vehicle/property repairs, up to the coverage limits. This coverage also extends to any authorized drivers of the insured vehicle, including family members.
Note that liability insurance coverage does not protect the policyholder from injuries or damage to their vehicle during troubles. This type of first-party coverage falls under different types of auto insurance.
In addition to liability insurance coverage, NE state law requires drivers to carry coverage for uninsured motorists (UM) and underinsured motorists (UIM). This coverage steps in if a driver is involved in an accident caused by a motorist who has no insurance (uninsured) or insufficient insurance (underinsured) to cover the full extent of the losses.
Under Nebraska Revised Statutes Section 44-6408, the minimum required UM and UIM coverage is $25,000 for bodily injury or death of one person in an accident and $50,000 for bodily injury or death of two or more persons in an accident.
Upon vehicle registration or renewal in Nebraska, vehicle owners must submit proof of auto insurance coverage to the county treasurer's office.
Types of Auto Insurance Coverage in Nebraska
Nebraska drivers are obliged to have certain types of auto insurance coverage. In addition to the mandatory requirements, motorists can add various coverage types to their policies for enhanced protection. These include:
Collision Coverage
Collision coverage pays for replacing or repairing the driver's vehicle if it is damaged in a collision with another object or vehicle, regardless of who is at fault for the accident. This coverage alleviates the financial burden of the repair or replacement costs.
Comprehensive Coverage
Comprehensive coverage in insurance refers to a policy that offers extensive protection against a wide range of risks and potential damages. It encompasses various scenarios that could lead to loss or damage, such as theft, vandalism, natural disasters, fire, falling objects, animal damage, and collision-related incidents.
Medical Payments Coverage
Medical payment coverage or MedPay saves drivers and passengers from medical expenses if injured in an accident, regardless of who is at fault. It typically covers medical costs such as hospital visits, surgery, X-rays, ambulance fees, and even funeral expenses in the event of a fatality.
Personal Injury Protection (PIP)
PIP covers medical expenses and lost wages for the driver and passengers after an accident, regardless of fault. It helps provide financial support during recovery and cover costs that other insurance policies may not fully cover.
Roadside Assistance
Roadside assistance comes to the rescue if the driver's car breaks down, such as towing, jump-starts, or flat tire changes. It offers convenience when the driver encounters unexpected issues with their vehicle.
Penalties for Driving Without Auto Insurance in Nebraska
Driving in Nebraska without proof of valid automobile insurance coverage can result in a Class II misdemeanor. This applies whether the lack of proof is discovered during a routine traffic stop by law enforcement or following a vehicle collision.
If a driver is convicted, their license and privileges will be automatically suspended if they own the car they were operating. However, if the driver is not the vehicle's owner, they must explain this to the court and plead innocence.
When a person has insurance coverage but lacks proof of the policy when pulled over, they have the option to present it in court within ten days of receiving the ticket. In this scenario, the citation should be dismissed, and there will be no cost to reinstate their license and registration.
Once a driver's license has been suspended, the driver must pay a $50 fee to the NE DMV to reinstate it. The fee can be paid using the NE DMV's Online Services.
Following a conviction, an individual may also be mandated to submit a certificate of financial responsibility, also known as SR-22, to the DMV. This proves the driver's financial responsibility and will remain on the driver's record for three years from the date the ticket was issued.
It is also possible for the individual to receive jail time for driving without insurance, especially if they have prior offenses or if their actions resulted in an accident causing injury or property damage. While jail time is not mandatory for a first offense, the court can impose it, and the sentence may increase with subsequent offenses.
How To Choose the Right Auto Insurance in Nebraska?
Selecting the appropriate auto insurance coverage is a critical decision that every Nebraska vehicle owner must consider carefully.
Firstly, in Nebraska, drivers are required by state law to have minimum liability and uninsured/underinsured motorist (UM/UIM) coverage for their vehicles, as mentioned above. These are the basic mandatory coverages that all drivers must have.
In addition to the required minimum coverages, there are optional coverage types that drivers can choose to add to their auto insurance policies based on their individual needs.
Nebraska drivers should research and compare quotes from multiple licensed insurance providers to find the best auto insurance options. The NE DOI website provides a list of licensed insurance companies operating in the state.
This is an important first step because insurers in Nebraska adhere to strict compliance standards. These standards are enforced through the System for Electronic Rate and Form Filing (SERRFF) of the National Association of Insurance Commissioners (NAIC).
The SERFF allows the state to review and approve the insurance products, rates, and policies that companies want to sell in Nebraska.
By starting their search with licensed providers on the NE DOI website, drivers can be assured that they are considering insurers who have met these regulatory requirements and offer state-approved products.
Review Financial Stability and Reputation
Researching the financial strength and stability of potential insurers is crucial. Drivers should look for insurance companies with high financial strength ratings from independent rating agencies. This indicates the insurer's ability to meet its financial obligations and pay out claims.
Financially stable companies are less likely to experience solvency issues or go out of business, which could leave policyholders without coverage.
In addition to financial stability, it's important to evaluate the reputation and customer service track record of insurance providers. Drivers should read reviews, check consumer complaint data, and explore the company's history of handling claims.
What Factors Affect Auto Insurance Rates in Nebraska?
Various factors influence auto insurance rates in Nebraska. Understanding these factors can help drivers in Nebraska find ways to reduce their premiums. Some of the primary factors that affect auto insurance rates in NE include the following:
Driving Record
A driver's history of accidents and traffic violations impacts their auto insurance rates in Nebraska. Insurers closely examine an individual's driving record to assess their level of risk and determine the appropriate premium.
Providers generally view drivers with a clean driving history, free of accidents and speeding tickets, as lower risk and offer them more favorable rates.
On the other hand, drivers with a track record of accidents, reckless driving behavior, or multiple traffic violations are considered higher risk. They are likely to face higher auto insurance premiums in Nebraska.
Age
The driver's age heavily has an effect on auto insurance rates in Nebraska.
Younger drivers, especially those in their teenage years, typically face higher premiums than their older counterparts. Insurers view younger drivers as a higher risk due to their relative lack of driving experience and increased likelihood of being involved in accidents.
Statistically, teenage drivers have higher accident rates and are more prone to engaging in risky driving behaviors, such as speeding, distracted driving, and impaired driving. As a result, insurance providers in Nebraska charge higher rates for this age group to offset the increased risk.
However, as drivers gain more experience behind the wheel and reach certain age milestones, such as 25 or 30, insurance companies generally offer lower rates, recognizing the reduced risk profile of more experienced drivers.
Vehicle Type
One of the primary considerations in determining auto insurance rates in Nebraska is the type of vehicle and its value. More expensive and luxurious automobiles tend to have higher insurance costs due to the more excellent replacement or repair expenses that insurers must account for.
Additionally, the vehicle's safety features play a role, as cars equipped with advanced technologies like collision avoidance systems are often viewed as less risky, potentially qualifying the owner for discounted rates.
Furthermore, the vehicle's performance characteristics can influence insurance premiums, as high-performance or sports cars that are more prone to speeding and aggressive driving behaviors have a higher potential for accidents, leading insurers to charge higher rates to offset the increased risk.
Insurance History
An individual's insurance history greatly influences auto insurance rates in Nebraska. A driver's past claims record gives insurers insights into their risk profile, as a history of multiple claims suggests a greater likelihood of future incidents that could result in payouts.
On the other hand, drivers with a clean claims history often qualify for lower premiums or discounts as they are seen as lower-risk candidates. Insurance companies differentiate between at-fault and not-at-fault claims, with at-fault claims generally having a more significant impact on premiums.
Insurers also consider the time frame of claims, focusing more on recent incidents to assess current risk levels accurately.
Type of Coverage
Another aspect of determining auto insurance rates in Nebraska is the type of coverage a policyholder selects. Comprehensive and collision coverages protect the policyholder's vehicle but come with additional costs, as insurers must factor in the potential payouts.
Drivers who choose to include optional coverages on their policies will generally pay higher premiums than those who opt for only the minimum required liability coverage.
Deductibles
The deductible amount selected by the policyholder is one of the significant factors that can impact auto insurance rates in Nebraska. The deductible is the out-of-pocket expense the driver must pay before the insurance coverage takes effect.
A higher deductible typically results in lower insurance premiums. This is because a higher deductible means the policyholder is responsible for covering more of the initial costs in the event of a claim.
By taking on a more significant share of the financial responsibility, the driver is seen as less risky by the insurance company, and this reduced risk is reflected in lower premium rates.
Conversely, a lower deductible, which allows more financial protection, will usually lead to higher insurance costs. When the deductible is lower, the insurance company is responsible for covering more of the claim expenses. To account for this increased liability, insurers will charge higher premiums to the policyholder.
How To Save Money on Auto Insurance in Nebraska?
Nebraska drivers can use some strategies to save a significant amount on their auto insurance costs. These include shopping around, taking advantage of discounts, increasing deductibles, reviewing coverage limits, and maintaining a good driving record.
Shop Around
Comparing quotes from multiple insurers is one of the best ways to find the most affordable auto insurance in Nebraska. Drivers should get quotes from at least 3-5 licensed providers listed on the NE DOI website to find the best rates.
Take Advantage of Discounts
Individuals should take advantage of insurance company discounts. Many insurers offer discounts for bundling multiple policies, maintaining a good driving record, completing defensive driving courses, or installing safety features in the vehicle.
Increase Deductibles
Choosing higher deductibles on comprehensive and collision coverage can reduce monthly premium costs. However, drivers should only increase deductibles to an amount they can comfortably afford to pay out-of-pocket in the event of a claim.
Review Coverage Limits
Drivers should review their coverage limits and consider adjusting them to find the right balance between adequate protection and affordable premiums. Lowering liability limits or removing optional coverages like comprehensive and collision can help reduce costs.
Maintain a Good Driving Record
Avoiding traffic violations and accidents is one of the best ways for Nebraska drivers to keep their auto insurance rates low over time. A clean driving history demonstrates responsibility to insurers.
What To Do After an Auto Accident in Nebraska?
After an auto accident, promptly and effectively handling insurance matters is fundamental to protecting one's interests and facilitating the claims process.
The first step is to exchange insurance information with the other parties involved, including their insurance company names, policy numbers, and contact details.
Moreover, the individual should swiftly notify their insurance company about the accident, providing accurate details such as the date, time, location, and a brief description of the incident. Timely notification leads to fast claim processing without unnecessary delays.
Documenting the accident scene is also vital. The individual should take photos of the damage to all vehicles involved and any relevant road conditions or signage. This visual evidence can support the insurance claim by clearly documenting the accident's circumstances.
Throughout the process, the individual should keep thorough records of all communication with their insurance company and maintain records of any expenses related to the accident.
How To File an Insurance Claim in Nebraska?
In filing for insurance claims, the individual should start by reviewing their insurance policy to understand coverage details, deductibles, and any specific requirements for claims. They should gather all relevant information related to the incident that caused the damage or loss, such as photos, receipts, and police reports, if applicable.
Next, the individual should contact their insurance company immediately using the designated claims department or hotline, providing them with essential details like their policy number, date of the incident, and a description of what occurred.
Once the claim is processed, the insurer will offer a settlement based on the individual's policy coverage. Policyholders should review this offer carefully to ensure it covers their losses or damages adequately. If the individual accepts the settlement, they may need to sign a release form before receiving payment.
If the claimant is dissatisfied with the settlement offer, they can explore options such as appealing through the insurer's internal process or seeking legal advice.
If the policyholder wishes to file a complaint against their insurance provider, they can seek the Insurance Complaint Division's online assistance through the Policyholder Help service on the DOI's website. Additionally, they can refer to the Filing An Insurance Complaint brochure to submit a formal complaint.