Auto Insurance Basics

Auto Insurance Requirements in Nebraska

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Nebraska's Financial Responsibility Law demands that all of its motorists carry liability auto insurance of at least 25/50/25 in coverage. The enforcement has proven successful, as Nebraska is among the top ten US states with the lowest estimated uninsured motorist percentage (6.7% in 2012).

Note that you must have your auto insurance policy in effect before you go to the Nebraska Department of Motor Vehicles (DMV) to register your car. You also must provide proof it exists to the official, and you can do so with the insurance ID card your insurer provided. Keep a copy of the ID card in your car too, because law enforcement officers have the power to ask you to show them if you are ever pulled over. 

Nebraska Required Car Insurance CoverageNE Required Min. Limits
Bodily Injury (BI) $25,000 per person / $50,000 per accident
Property Damage (PD) $25,000 per accident
Uninsured Motorists Bodily Injury (UMBI) $25,000 per person / $50,000 per accident

Nebraska Car Insurance Minimum Requirements

A minimum policy in the Cornhusker State will include two coverages: bodily injury and property damage. These two are collectively referred to as the liability car insurance portion of your auto insurance. These two types make sure that your insurer will pay on your behalf for other people's damages whenever you cause an accident within the state, up to a certain coverage amount (limits). Additionally, Nebraska motorists must also carry Uninsured Motorists coverage. Here are your Nebraska minimum limits as required by the law:

Property Damage (PD): PD kicks in when you crash into someone else’s car, whether it was moving or parked, and even municipal property or residences. The minimum policy covers you up to $25,000 per accident for any expense you may owe to the other driver, such as his/her tail lights replacement or auto body paint job. 

Bodily Injury (BI): each time you cause an accident that is serious enough to injure someone else, you are liable for the injured person’s medical costs. Under the minimum policy, your BI coverage pays up to $25,000 for each person you hurt, but no more than $50,000 for each accident. 

Uninsured Motorists Bodily Injury (UMBI): in case you or your passengers are hurt in an accident that is caused by a driver who does not have adequate insurance coverage, you medical bills are covered by UMBI. Nebraska required every motorists to carry $25,000 per person/ $50,000 per accident coverage amounts in a minimum policy.

Alternative Proof of Financial Responsibility 

The Nebraska Financial Responsibility Laws makes an insurance policy a requirement for all residents who plan to drive in the state. However, it does allow several alternatives to a policy, which, if approved and certified, can be used as your proof of insurance. Here are the alternatives:

Surety Bond: issued by a licensed surety company, and conditioned for payment up to $75,000. File the bond with the DMV and use a copy as your proof of insurance. The main difference between a bond by a surety company and a policy by an insurer is that the surety company will ask you for the money it has paid in your place back.

Property Bond: if you can find two friends who own real estate in Nebraska to be your guarantee, you may file a property bond with the DMV through your county court. They must understand that in case you fail to pay up to $75,000 per accident for any personal injuries or property damage you cause to the other party, they will become the next liable people in line. Their property must be listed as collateral in case the court does not receive a response to judgments against you in time. Use a copy of the court-approved property bond as your proof.

Certificate of Deposit: the certificate is only issuable by the Nebraska State Treasurer, after you deposit $75,000 in cash or securities like government bonds with him or her. The Treasurer will use your deposit toward any judgments for an accident you cause.

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