Nebraska's Insurance Laws

Nebraska law requires all drivers to prove financial responsibility.

The federal government does not enact automobile insurance legislation. Each state is free to pass laws detailing the amounts and types of coverages drivers must purchase. The states are also free to decide whether to accept proof of financial responsibility other than a traditional insurance policy. Nebraska insurance laws describe the types of vehicles for which financial responsibility must be provided, the acceptable forms of financial responsibility and the minimum amounts each driver must provide.

Vehicles Exempt from Financial Responsibility Laws

Proof of financial responsibility is not mandatory for boats, snowmobiles, trailers and truck-mounted campers. However, the vehicles towing them must have the proper insurance. Vehicles with 30-day or dealer plates are exempt from the financial responsibility laws as well.

Acceptable Ways to Prove Financial Responsibility

Nebraska drivers can purchase a policy from an insurance company with a license to sell insurance in the state of Nebraska. Alternatively, a driver may deposit cash or securities totaling $75,000 with the Nebraska State Treasurer (amount as of 2011). Drivers may also post a property bond, but this requires two separate guarantors, each of whom owns real estate in the state. Drivers may purchase a surety bond in the same amounts as the minimum liability coverage requirements. Last, a company with at least 26 vehicles can apply for a certificate of self-insurance.

Mandatory Minimum Coverage Amounts

As of 2011, liability insurance policies and surety bonds must meet the same minimum coverage limits. Nebraska law requires $25,000 bodily injury liability for one person, $50,000 bodily injury liability for more than one person injured in the same accident and $25,000 in property damage liability.

Proof of Coverage

If the driver chooses to purchase an insurance policy, the actual policy and the certificate of insurance card are both acceptable as long as they are originals, rather than copies. The document must have the name of the insurance provider, policy number and the names of all covered drivers as well as the date the policy became effective and the date it will expire. It must also show the year, make and model or the year, make and last three characters of the Vehicle Identification Number. For those who choose to post a surety or property bond, make a cash deposit or who are self-insured, the certificate must include the seal from the Department of Motor Vehicles. If the policy covers a fleet of five or more vehicles, and the cards do not include a description of each vehicle, the state will accept an endorsement on the card that coverage extends to every vehicle the insured party owns.

References

• Nebraska Department of Motor Vehicles: Insurance Requirements