A Guide to Understanding Nebraska's Basic Auto Insurance Requirements?
Nebraska's auto insurance provisions require motorists to use a tort-based system to recover damages sustained in an auto accident. As a result, motorists must purchase at least enough auto insurance coverage to cover potential claims for bodily injuries and property damages.Moreover, Nebraska's auto insurance laws also allow insurance agencies to sell optional coverage that help drivers protect themselves against the risk of collisions, false claims and other potential problems. Some Nebraska drivers have difficulty understanding these requirements. As a result, here is a brief auto insurance guide that can help you understand Nebraska's basic auto insurance requirements.Nebraska drivers must purchase bodily harm coverage that can be no less than $50,000.At least 50% of this coverage must be individual coverage that covers one person's injuries sustained in an auto accident. Moreover, drivers can purchase additional coverage that covers injury-related damages that are not covered under the minimal bodily harm coverage requirements.Drivers in Nebraska must purchase property damage coverage.This coverage must include a minimum of $25,000 of accident coverage. This coverage can be used to cover accident-related damage to vehicles, personal property and property that belongs to people who are not directly involved in an auto accident.Drivers must also purchase uninsured motorist coverage.This coverage must include at least $50,000 of accident coverage and a minimum of $25,000 of individual coverage. This coverage is required because it is believed to help reduce the costs that are associated with sharing the road with non-insured motorists.Auto insurance agencies that do business in Nebraska must also follow several auto insurance requirements. Here is a brief summary of the two most important requirements that are of special interest to Nebraska drivers.Drivers must be told about optional auto insurance coverage plans.Nebraska auto insurance providers are required to tell drivers about optional auto insurance plans that offer protection against the risk of themselves against the risk of collisions, false claims and other potential problems. As a result, most Nebraska auto insurance providers offer free pamphlets that explain these optional coverage plans.Moreover, insurance agents must disclose how they use clients' personal information.Many Nebraska auto insurance agencies use a client's age and credit score to determine eligibility for certain auto insurance coverage products. As a result, auto insurance agencies are required to disclose how they use this information during the application process. Failure to do so can result in fines and a possible suspension of an agent's insurance license.For more details about these requirements, please contact the Nebraska Department of Insurance at (877) 564-7323.