What You Need to Know About Auto Insurance in Nebraska

Owners of vehicles in Nebraska are required under state law to have proof of financial responsibility at all times, especially when operating their vehicles. This is to ensure the driver has the capability to pay for damages and injuries he or she might incur along the road. The most common way to satisfy this rule is to purchase auto insurance. The state has imposed minimum liability coverage that an auto insurance policy has to carry. Consumers have the right to purchase higher coverage than this minimum amounts, which are $25,000 for injury or death of any one person, $50,000 for total injuries and deaths per accident, and $25,000 coverage for property damages. Consumers should take note that these coverage are only for the other party and does not include the policyholder, members of his or her household, or any passenger who might be present at the time of the accident. To pay for possible medical expenses and injuries on their part, policyholders can purchase personal injury protector, which is one of the supplemental coverage that can be added to the policy. Other coverage available are for uninsured/underinsured motorist, comprehensive, and collision.

Though there are a lot of legitimate insurance providers in Nebraska, there is still a possibility that consumers will become victims of fraud. In order to prevent this, consumers need to be alert when it comes to signs of fraudulent transactions. This include requests of making cash payments directly to an insurance agent, presenting a suspicious-looking identification card, issuing a policy that does not contain complete information, or not being issued a policy at all. When any of these scenarios happen, consumers would do well to contact the Nebraska Department of Insurance to inquire or make complaints.

Nebraska is recognized as one of the states with affordable auto insurance rates, well below the national average. To assure of getting lower premium rates, vehicle owners should ensure they have clean driving records and must shop around for the best policy available. The state has also implemented the Nebraska Insurance Guaranty Fund, to guaranty the protection of auto insurance policyholders whose insurance providers have gone bankrupt. All licensed insurance companies and providers in the state are required to become a member to this fund. Consequently, only policies issued by licensed insurance providers are covered under the fund and do not include insurance products purchased from surplus lines.

A surplus line policy is still a legal contract, though only specially licensed insurance agents or brokers are allowed to sell this kind of product to consumers. Those who have been rejected by licensed insurance providers due to their high-risk status might find themselves purchasing surplus line policies, which typically carry higher rates and is not regulated by the Nebraska Department of Insurance.

As in any other state, policyholders might themselves being imposed with higher premium rates as they include teenage or elderly drivers into their policy. This is because these demographic groups are considered high-risk—the former due to their inexperience and typical rash behavior and the latter due to the presence of medical conditions that might impair their capability to operate motor vehicles.

Apart from keeping excellent driving record, there are also ways to incur savings when it comes to auto insurance. These include purchasing all your insurance policies from only one provider, installing safety devices and equipments, and reducing the frequency of using the vehicle. The state allows auto insurance providers to cancel a policy in the event of nonpayment, misrepresentation of facts upon application, and regular occurrences of traffic violations and accidents that might lead to making more claims and eventual suspension of the driver’s license. Conviction of the policyholder to a felony is also grounds for cancellation or non-renewal.

We help our Nebraska customers in Omaha, Lincoln, Bellevue, Grand Island, Kearney, Fremont, Hastings, North Platte, Norfolk, NE and other cities in the Cornhusker State lower their premiums and save money on all types of insurance. Use the form above to find low cost auto, homeowners, health, medical, life and long term care insurance. Using our Nebraska insurance agent and broker network, you can easily compare rates from multiple insurers.

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