Similar to any state in the United States Nebraska takes its laws on Auto Insurance very seriously and it is possible to have your license suspended if the insurance papers are not in order. The significance of auto insurance has been highlighted recently. Drivers are meant to carry $25,000 for bodily injury or the death of a particular person, death of more than one and bodily injury is $50,000 and property damage benefits in a single accident are $25,000.
Despite the state’s standards for coverage, insurance experts have often remarked that drivers need more coverage than the standards set by the state. The owner is held personally responsible if the damages to the property in an accident exceed the insurance coverage offered by the state. Make sure you get adequate time to research this particular subject as it is of extreme importance. Find out how much it will cost you to increase your coverage to a safe amount so that you do not have to pay in dire situations. The difference is generally affordable.
Keep your papers with you at all times as it is not uncommon for police officers to ask you to provide proof of financial responsibility. These papers are also asked in accidents to see if you have the state’s minimum coverage.
Nebraska Auto Insurance Laws
The State of Nebraska mandates that all vehicles have a proof of financial responsibility, otherwise called as liability coverage. The National Association of Insurance Commissioner (NAIC), says that the best way to find affordable coverage is to engage in comparison shopping and getting auto insurance quotes.
The State of Nebraska follows a tort system which implies that if one is involved in an accident, then someone is to be found to be the cause of the accident and that person is responsible for the damages caused. This is the reason; experts say that drivers consider carrying higher premiums compared to the state minimums.
The laws of Nebraska are very clear on the consequences a person will face if he/she does not have the necessary proof of financial responsibility. With the growing rates of teenage DUI and non-licensed drivers, the state has passed a law stating that anyone without liability coverage or insurance will have their driver’s license suspended immediately. These laws are also the same on car rentals. It is imperative to check your credit card and insurance policy to check if it covers car rentals. It is also possible for the state to write policies where certain household members can be excluded from the coverage. Coverage of $25,000 and $50,000 are given to uninsured and underinsured motorists.
Each and every driver is charged differently based on his skill, experience and previous records if any. This is the reason why shopping around for auto insurance is considered important. Reputable insurance companies like Young America Insurance are known to charge lower interest or premium rates to those drivers with a clean record. Even in teenage drivers, kids with better grades at school are known to get policies with lower interest rates. Hence it is always better to drive safely and obey the laws and rules of the road. This can definitely help in reducing the premium.
Basic Requirements expected by the State of Nebraska
- The state requires that a liability policy be purchased on the vehicle and the liability will pay for the incurred damages extending to both the body and the vehicle of the victim.
- Comprehensive insurance though not deemed necessary is generally recommended for all the residents. If the person insured is in turn responsible for the cause of the accident, then the insurance is deemed null and void and he is required to pay for the costs on his own. The comprehensive coverage also states that if your car is damaged either by uncertain conditions like a collision and whether or by theft then the coverage is to pay your car’s repair or replacement costs.
- Though it is not a prerequisite to have an insurance policy, Underinsured and Uninsured Motorist coverage are two other viable options and often recommended since today’s drivers are choosing fewer methods to protect themselves. If ever involved in a hit and run case or an accident with an uninsured driver, the UM/UIM pays a part of your medical fees if the driver is unable to pay our bills.
Proof of Financial Responsibility in the State of Nebraska
Proof of financial responsibility is to be carried at all times. So, just to be on the safe side, always keep a copy of this document wherever you go. The document is to be an original and has to be issued by someone who is legally authorized to do so. The certificate is to contain the following information about the driver.
- Name of policy provider: The name of the policy provider is a must since it proves that a certain company has registered you and is capable of insuring you if something untoward might happen. We must also register or file a claim in the event of an accident and you could be assisted by insurance lawyers.
- Names of Insured
- Policy number
- Year and make of vehicle
- Last 3 digits of the Vehicle Identification Number
- Expiration and effective dates of coverage
Car insurance Tips to Reduce Premiums
Most of us need to lower the cost of our auto insurance as much as possible. Our driving record may not be clean enough to qualify for a 20 down car insurance, but we can still fight for our premiums to be lower.
1. It is always advisable to keep an open mind and not commit to any one agent when shopping for insurance. Ask for competitive quotes and make certain that each company’s quotation has different interests.
2. Homeowners can also combine their auto insurance policies with their home insurance thus reducing premiums and getting a more secure package.
3. It is common knowledge that your credit rating has an adverse effect on your insurance rates. Make sure to review your reports annually.
Insurance is mandatory so make sure that you get the maximum out of it even during catastrophes.