What Car Insurance Is Required in Nebraska?

In Nebraska, "proof of financial responsibility" is required for all motor vehicles registered in the state. For most vehicle owners, that means buying liability car insurance coverage at the following mandatory minimums:

• $25,000 liability coverage for injury or death of one person in an accident caused by the insured owner/driver
• $50,000 liability coverage for total injury or death liability in an accident caused by the insured owner/driver, and
• $25,000 liability coverage for property damage per accident caused by the insured owner/driver.

Car insurance policies issued in Nebraska are also required to include:

• uninsured motorist coverage, and
• underinsured motorist coverage.

Let's take a detailed look at Nebraska's car insurance rules, and how they'll come into play after a car accident.

What Is "Proof of Financial Responsibility" in Nebraska?

Nebraska's "proof of financial responsibility" rules are aimed at making sure people who own and drive vehicles can pay for any harm they might cause in a car accident. Besides buying car insurance coverage that meets the minimum requirements we laid out at the start of this article you can also comply with Nebraska's "proof of responsibility" rules by:

• getting a bond (or property bond) conditioned for the payment of up to $75,000, and filing it with the Nebraska DMV
• a certificate of deposit for $75,000, with the Nebraska DMV seal on it, or
• getting a "certificate of self insurance"

Get the details on meeting Nebraska's financial responsibility requirements, from the Nebraska DMV.

What Does Liability Car Insurance Cover in Nebraska?

Liability coverage pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians who are injured or have their vehicle damaged in a car accident you cause, up to coverage limits. You can (and in some situations should) carry more coverage to protect you in case a serious crash results in significant car accident injuries and vehicle damage. Once policy limits are exhausted, you are personally on the financial hook, so higher insurance limits can help protect your personal assets in the event of a serious crash.

Your liability coverage will kick in if any family member is driving your vehicle, or if you've given someone else permission to use it. It will likely also cover you if you get into an accident in a rental car.

Your Liability Insurance Won't Cover Your Own Injuries or Vehicle Damage After an Accident

Remember that liability coverage doesn't apply to your own injuries or vehicle damage after a Nebraska car accident. You'll need different (additional) coverage for that if you're involved in a car accident and no one else's coverage applies to your losses. For example, collision coverage (optional in Nebraska) can pay for repairs to (or replacement of) your damaged vehicle after a car accident. Note that collision or comprehensive might be required under the terms of a vehicle lease or financing agreement.

Does Nebraska Require Uninsured Motorist Coverage?

Yes. In addition to the liability coverage minimums we discussed above, a car insurance policy issued on a vehicle registered in Nebraska must include uninsured motorist (UM) coverage. This type of car insurance kicks in when the policyholder and certain other covered individuals—like someone driving the car with permission, or a passenger—is injured in an accident caused by an uninsured driver.

In Nebraska, UM coverage required minimums are:

• $25,000 for injury or death of one person in any one accident caused by an uninsured driver, and
• $50,000 for injury or death of two or more people in any one accident caused by an uninsured driver.

Do I Need Underinsured Motorist Coverage in Nebraska?

Underinsured motorist (UIM) coverage is also required in Nebraska, at the same minimums listed above for uninsured motorist coverage. UIM applies to fill some or all of the financial gap between the at-fault driver's policy limits and the dollar value of your car accident losses. Both of these coverages are mandated by Nebraska Revised Statute 44-6408, which also lets insurers issue policies with higher UM/UIM limits, up to $100,000 per person and $300,000 per accident.

Note that in Nebraska, both UM and UIM cover "bodily injury, sickness, disease, or death" resulting from a car accident. They don't apply to vehicle damage caused by an uninsured driver. Learn more about your options after an accident with an uninsured driver.

What Happens If I Drive Without Insurance in Nebraska?

In Nebraska, if you receive a citation for "No Proof of Insurance" and you're the vehicle owner, your driver's license will be immediately suspended. To get it back, you must file proof of financial responsibility and pay a $50 reinstatement fee. The Nebraska DMV has more information about consequences of not having proper car insurance in Nebraska.

Keep in mind that these penalties will come on top of serious financial consequences if you cause a car accident and you don't have insurance.

Can I Show Proof of Insurance on My Phone in Nebraska?

Yes, evidence of car insurance can be displayed as an electronic image on a phone or other device. If proof of car insurance is in a non-digital format, it must be and original document issued by an insurance company that's authorized to do business in Nebraska. Photocopies aren't accepted.

If you've got questions about your legal options after a car accident in Nebraska, it might make sense to discuss your situation with a lawyer. Learn more about how an attorney can help with your car accident case.