Nebraska car insurance requirements and laws

Minimum car insurance requirements

Nebraska requires an automobile liability policy of at least 25/50/25 (Neb. Rev. Stat. §§60-310, 60-534), and every policy issued or renewed for a vehicle garaged in the state must include both uninsured and underinsured motorist coverage at 25/50 (Neb. Rev. Stat. §44-6408). Compare states with the state car insurance requirements lookup.

What the minimums mean in practice. If you cause a crash and the other driver has $40,000 in medical bills and lost wages, your 25/50/25 policy pays $25,000, and the other $15,000 can be pursued from you. A crash that totals a new pickup can exceed the $25,000 property damage limit. The required UM and UIM coverage works the other way: if a driver with no insurance or only 25/50 limits injures you, your own policy steps in up to your UM/UIM limits. how much liability coverage do you need? and the liability limits decoder can help.

Fault system and what it means after a crash

Nebraska is an at-fault state. The driver who causes the crash is responsible for medical bills, lost income, pain and suffering and vehicle damage, paid by their liability insurer up to the policy limits. You can claim against that insurer, use your own coverage and let your insurer pursue subrogation, or file a lawsuit (no-fault vs at-fault states).

Nebraska's comparative negligence rule reduces your damages by your share of fault but bars recovery completely if your negligence is equal to or greater than the combined negligence of the people you sue (Neb. Rev. Stat. §25-21,185.09). In practice, a driver found 50% at fault recovers nothing, which is stricter than the 51% bar used in many states (comparative vs contributory negligence).

Most car accident lawsuits for injuries or property damage must be filed within four years (Neb. Rev. Stat. §25-207). See statutes of limitations for car accident claims.

Optional coverage worth considering here

• Higher UM/UIM limits. Nebraska requires 25/50, but you can buy more. The Insurance Research Council estimates 9.5% of Nebraska drivers were uninsured in 2023, below the national 15.4%, though minimum-limits drivers are common (uninsured and underinsured motorist coverage explained).
• Medical payments coverage. Nebraska has no PIP; medical payments coverage pays your own medical bills quickly regardless of fault.
• Comprehensive. Nebraska is in the heart of hail country, and spring and summer storms, along with deer collisions, generate many comprehensive claims (hail, flood and storm damage: filing a comprehensive claim, comprehensive coverage explained).
• Collision for newer or financed vehicles, and gap insurance if you owe more than the car is worth.

What drives rates in Nebraska

The NAIC puts Nebraska's average annual expenditure at $981 in 2023, below the national average of $1,282 (What NAIC auto insurance data measures).

Low population density and modest traffic outside Omaha and Lincoln keep collision frequency down. Hail is the main upward pressure: severe storms can damage thousands of vehicles at once, which raises comprehensive premiums statewide. Deer strikes, winter ice and long rural trips add to the risk. Rates in Omaha typically run higher than in smaller towns (Why your ZIP code changes your car insurance price).

Penalties for driving uninsured

Allowing your vehicle to be driven on a Nebraska highway without a current liability policy or other proof of financial responsibility is a Class II misdemeanor (Neb. Rev. Stat. §60-3,167). On conviction, the Department of Motor Vehicles suspends your driver's license, vehicle registration and plates until you file proof of financial responsibility, and you must keep that proof on file for a continuous three years after the violation. If you simply cannot produce proof during a traffic stop, the law gives you ten days afterward to show you were insured. See penalties for driving without insurance.

SR-22 and high-risk drivers

The proof Nebraska requires after a suspension is normally a certificate of insurance filed by your insurer with the DMV, commonly called an SR-22 (Neb. Rev. Stat. §60-528). After a conviction for driving uninsured it must stay in force for three years; other suspensions, such as those tied to DUI, can carry their own requirements. If your policy lapses during that period, the insurer notifies the state and your privileges can be suspended again. See SR-22 insurance explained, Car insurance after a DUI and high-risk car insurance: options when insurers say no.

Insurers with a strong presence in Nebraska

National and Midwestern carriers State Farm, Progressive, American Family Insurance, Allstate and GEICO write a large share of the market. Nebraska Farm Bureau members are served through Farm Bureau Financial Services, and Lincoln-based FMNE Insurance (Farmers Mutual of Nebraska) sells through local agents. See regional car insurers: when smaller carriers can beat the giants and Farm Bureau insurance: membership, eligibility and how it works.

Where to get help

The Nebraska Department of Insurance regulates insurers and investigates consumer complaints. Call the insurance complaint hotline at 877-564-7323 (in-state) or 402-471-2201, visit doi.nebraska.gov, or write to P.O. Box 95087, Lincoln, NE 68509-5087. how to file a complaint against a car insurance company explains what to include. License suspensions and SR-22 filings are handled by the Nebraska Department of Motor Vehicles. For an injury claim, consult a licensed Nebraska attorney.