Nebraska has done well to keep its insurance costs down and maintain one of the lowest uninsured driver rates in the country. As these two statistics often go hand-in-hand, many states can be envious of Nebraska. 7th lowest uninsured drivers with the 38th least expensive insurance rates, well below the national average make it an attractive state to get quality coverage in.
At Fault in Nebraska
The insurance system in Nebraska is an at fault system that ensures drivers are able to recover damages through a variety of means. This paired with a high minimum coverage rate and low uninsured rate seems to have generally curbed frivolous lawsuits in the state.
The drivers in Nebraska can recover damages directly through their own health insurance or auto insurance, by choosing to settle with the suspected at fault driver directly, through the other driver’s insurance company with a settlement or through direct legal action in a civil suit. Although there are many choices, because of the relatively high insurance coverage minimums required in Nebraska, many drivers are covered by their own insurance.
The minimum coverage rates in Nebraska seem to be one of the reasons why insurance rates are low, although that seems at odds to more insurance costing more. This higher coverage has apparently kept lawsuits lower in the state which in turn keeps premiums lower.
Minimums in the state include $25,000 for single person injury accidents, $50,000 for multi-person injury accidents and $25,000 for property damage. These higher than average minimums offer a higher level of insurance coverage for drivers involved in minor accidents.
As with most other states, Nebraska insurers provide a number of optional insurance coverages to ensure one accident does not become a financial disaster for you. From comprehensive coverage to cover acts of vandalism, theft, fire and weather to collision insurance to cover the costs of repair for your own vehicle to medical payments insurance to ensure your medical bills are covered if you are injured in an accident with an uninsured driver; they all provide a necessary stop-gap to these potential disasters.
Proof of Financial Responsibility
Although insurance coverage is mandatory in the state it is actually referred to as requiring proof of financial responsibility and simply most drivers satisfy this by providing coverage through insurance, yet this is not the only option to do so.
Instead you can meet this responsibility by submitting to a surety bond with the department of motor vehicles for Nebraska in the same minimum amounts as listed above. You could also register a property bond worth at least $75,000 or deposit the same amount in cash or securities with the DMV as well. In each of these cases you can forgo insurance coverage because you have provided proof of financial responsibility should you be involved in an accident in the state.
High Risk Drivers
If you are a high risk driver because of previous traffic violations or DUI convictions the Automobile Insurance Plan for Nebraska which is a pooled risk insurance from all insurers in the state. You cannot be denied insurance from the Plan; however it can be much more expensive than traditional coverage.
No Insurance Penalties
Since there is a financial responsibility law in the state, enforcement officers have a right to ask for proof of insurance during normal traffic stops. This proof can be any of the items mentioned above, but if you cannot meet the proof of responsibility you can be liable for fines, license suspensions, revocation and demerit points to your driving record.
As one of the lowest uninsured rates in the country, Nebraska enjoys lower insurance premiums as a result, however almost 7% of people in the state still do not have auto insurance.