Nebraska Auto Insurance Requirements

Nebraska Financial Responsibility Law

Nebraska's Motor Vehicle Safety Responsibility Act (NRS Chapter 60, Article 5) requires all vehicle owners to maintain financial responsibility before operating a motor vehicle on public roads.

Minimum Liability Requirements: 25/50/25

Understanding the 25/50/25 Split Limits

Example Scenario: A Nebraska driver causes an accident injuring 3 people and damaging a vehicle.

*Limited by $50,000 per-accident maximum

Exam Tip: Nebraska's 25/50/25 minimum limits leave drivers exposed to personal liability in serious accidents. Producers should discuss higher limits with clients.

Required and Optional Coverages

Required Coverages

Uninsured Motorist (UM) Coverage

UM coverage in Nebraska:

• Required by law unless waived in writing
• Protects you when hit by uninsured driver
• Covers hit-and-run accidents
• Must be offered at liability limits
• Insured can select lower limits
• Written rejection required to decline

UM Waiver Requirements

To waive UM coverage, the insured must:

1. Receive written disclosure of coverage and benefits
2. Sign a dated written rejection form
3. Rejection applies until insured requests coverage
4. New policy requires new waiver

Underinsured Motorist (UIM) Coverage

UIM coverage in Nebraska:

• Not mandatory but recommended
• Covers when at-fault driver has insufficient limits
• Protects against underinsured drivers
• Often bundled with UM coverage
• Pays difference between other driver's limits and your damages

Optional Coverages

Proof of Financial Responsibility

Acceptable Proof

Nebraska drivers must provide proof of insurance when:

• Requested by law enforcement
• Registering a vehicle
• Renewing registration
• After an accident

Acceptable Forms of Proof

Electronic Proof of Insurance

Nebraska accepts electronic proof:

• Display on smartphone or tablet
• Officer may not seize device
• Insured not liable for other content viewed
• Must clearly show required information

Exam Tip: Nebraska accepts electronic proof of insurance displayed on mobile devices. Officers cannot require the device be handed over.

Penalties for No Insurance

First Offense

Subsequent Offenses

SR-22 Requirements

SR-22 (Certificate of Financial Responsibility) may be required after:

• Driving without insurance conviction
• DUI/DWI conviction
• At-fault accident without insurance
• Accumulating serious violations

SR-22 Details:

• Filed by insurer with Nebraska DMV
• Proves continuous coverage
• Required for 3 years typically
• Higher premiums during SR-22 period
• Cancellation reported to DMV immediately

Nebraska Tort System

At-Fault Determination

Nebraska follows traditional tort (fault-based) system:

1. Investigation - Determine who caused accident
2. Liability - At-fault party responsible for damages
3. Claim - Injured party claims against at-fault driver
4. Payment - At-fault driver's insurer pays (up to limits)
5. Excess - At-fault driver personally liable for amounts above limits

Comparative Negligence

Nebraska uses modified comparative negligence (47% rule):

Example:

• Total damages: $100,000
• Your fault: 30%
• Recovery: $100,000 × 70% = $70,000

Exam Tip: Under Nebraska's comparative negligence rule, you cannot recover if you are 48% or more at fault for the accident.

Auto Insurance Rating Factors

Permitted Rating Factors

Nebraska insurers may use:

Restricted Rating Factors

Nebraska has limitations on:

• Credit score use (regulated)
• Gender-based pricing (limited)
• Education level
• Occupation

Nebraska Auto Policy Provisions

Cancellation Requirements

Insurers must provide:

Required Cancellation Reasons

After 60 days, insurers can only cancel for:

• Non-payment of premium
• Fraud or misrepresentation
• License suspension or revocation
• Material change in risk

Claims Settlement Standards

Nebraska requires insurers to:

• Acknowledge claims within 15 business days
• Begin investigation promptly
• Settle claims fairly and promptly
• Provide written denial explanations
• Pay undisputed amounts timely