Auto Insurance in Nebraska

Overview

Auto insurance fraud is rampant in many U.S. states and the Cornhusker State is no exception. While Nebraskans pay less than the national average for their annual auto insurance premiums, state officials are concerned that insurance fraud in their state could result in higher auto insurance premiums.

To combat this, the state’s Insurance Fraud Prevention Division (IFPD) has asked consumers to be on the watch for a specific type of insurance fraud—phony auto insurance ID cards and fake auto insurance policy binders.

Fraudulent auto insurance identification cards

Nebraska’s IFPD has issued a brochure asking Nebraskans to be on guard against the manufacture and/or use of phony auto liability ID cards and insurance binders.

Here are four red flags to watch out for:

  1. Being asked to pay your auto insurance premium in cash or by a money order.
  2. Not receiving your auto insurance policy binder or a permanent automobile insurance ID.
  3. Receiving an ID card or auto insurance policy binder that “just doesn’t look right.” Examine your card and policy carefully to make sure that they are NOT well-made photo copies.
  4. Receiving an ID card or binder that is missing information.

Identity thieves are using old auto insurance identification cards as one way to steal your identity. Make sure that after you have received your ID card and examined it carefully to confirm that it is not fraudulent, destroy your old cards by cutting up, or better yet, shredding.

Nebraska’s mandatory auto insurance requirements

According to Nebraska auto insurance law, Nebraskans must show proof of financial responsibility. This means that you must be able to prove that you carry the following minimum liability auto insurance coverages:

  • $25,000 – bodily injury (BI), one person
  • $50,000 – bodily injury (BI), multiple victims, per accident
  • $25,000 – property damage (PD)

What property damage covers in the state of Nebraska

In Nebraska, if you are found to be at fault in an accident, PD coverage pays for any damages you or members of your family cause (and are liable for) to other people’s property in a car crash.

It is important to discuss with your Nebraska auto insurance agent or company if the coverage you carry will provide the protection you need. With the rising costs of auto repair, in the case of a car crash, the minimum BI and PD coverages may not you with enough protection. Make sure your policy coverages meet your needs as well as meeting the state minimum liability requirements.

Nebraska law of Proof of Financial Responsibility (PFR)

If you are a Nebraskan motorist, it is mandatory that you have your PFR in your vehicle at all times.

When you register your vehicle in Nebraska, you must show your PFR at the time of application. Your insurance information must be provided in the form of a certificate and is required to be the original document. No photo copies will be accepted. Also, it is important to note your auto insurance MUST be from an auto insurance agent or company licensed to conduct business in the state of Nebraska.

Other options for showing evidence of financial responsibility are:

  • Nebraska Bond of Surety
  • $75,000 cash bond
  • Self-insured certification

Comprehensive/collision coverage

It is not mandatory in the state of Nebraska for resident motorists to carry comprehensive and collision auto insurance coverages.

However, if your vehicle is financed by a commercial lender, or you lease a car, the lender or leaser will more than likely require you to carry comprehensive and collision coverage in order to protect their investment in your auto.

Make sure that you have adequate auto insurance coverage!

Average annual cost of auto insurance

The 2011 average annual auto insurance premium for Nebraskans is $1470, which is lower than the national annual average, which is $1561.

 

Resources

Nebraska Division of Insurance
Web  www.doi.ne.gov

Nebraska Insurance Fraud Prevention Division  
Tel 402-471-2201