Nebraska Auto Insurance Laws
Auto Insurance Laws and Trends in NE
Nebraska has implemented the tort system of insurance. Under this system, all motorists are required to carry minimum limits of liability in bodily insurance. These limits include bodily injury of $25,000 per person and $50,000 per accident; property damage of $25,000 per accident; and under/uninsured motorist coverage of $25,000 per person and $50,000 per accident. Optional coverage includes personal injury protection, collision, and comprehensive auto insurance.
Factors in determining Nebraska auto insurance premiums
There are several factors that influence how auto insurance premiums are determined in Nebraska. Some of these factors include age, gender, marital status, driving record, territory or residence, and make and model of vehicle. Another important factor is the use of an individual's credit score.
Insurance companies hold the belief that a person with a poor credit score is more likely to file a claim, thus costing the insurance company a lot of money. A credit score is used for two things: First, to determine your insurance rates, and second to determine if you can pay your premium in installments, or if it must be paid up front.
Auto insurance fraud in Nebraska
In Nebraska, there is a growing problem with insurance fraud. Insurance fraud is when an individual, group, or even insurance company tries to obtain money illegally. Some of the most common ways people try to commit auto insurance fraud are:
- Falsifying a hit and run claim
- Falsifying a car theft claim
- Setting fire to your car intentionally for money
- Claiming for a higher amount than was actually lost
- Claiming a prior injury in a recent automobile accident
- Falsifying documents or claims
- Pocketing premiums and not issuing an insurance policy
No matter how small the amount of money it is, it is still considered fraud. Many consumers believe that because they have had auto insurance for several years and have never filed a claim, the insurance company owes them. The fact is , insurance is to protect you against an unforeseeable event and financial hardship. It is not a guaranteed cash payout.