The Different Types of Auto Insurance in Nebraska
Auto insurance in Nebraska works under a Tort system when dealing with car accidents. What this means is that whenever an accident happens, someone must be found at fault, and they, along with their car insurance company, will be responsible for paying for all damages.
In addition to the Tort system, auto insurance in Nebraska also requires drivers to comply with the state minimum requirements. The state requirements for bodily injury liability are $25,000 per injured person, up to $50,000 per accident. There is also a minimum Property Damage Liability auto insurance coverage that amounts to $25,000.
Keep in mind that you don’t have to stick with minimum state requirements. Later on, you can opt for additional coverage to extend your policy’s protection beyond what you current have. Remember that any costs which exceed your policy coverage will have to be covered by you personally. So unless you have no problem with this arrangement, it is best that you get coverage that exceeds what the minimum.
*Comprehensive Car Insurance Coverage
Aside from the insurance requirements of Nebraska state law, you may also want to purchase additional insurance coverage. A good example is the comprehensive car insurance coverage. If you are in an accident, comprehensive auto insurance will pay for repairs up to the Blue Book value of the car, and if the costs will be in excess of this amount the car will be deemed to be totaled and you will receive the cash value of the car. Although not required by state law, banks and lending institutions require you have them if you are planning a car loan.
*Gap Car Insurance
Another type of insurance policy that you may want to try is gap car insurance. Although not a well known type of auto insurance in Nebraska, Gap Car Insurance is useful by making up the difference between what is paid by comprehensive car insurance and what is owed on your loan in the event that your car is found to be totaled in an accident.
*Collision Car Insurance
Collision coverage will pay for any damages done to your repairs to your car, minus any deductibles, when it’s damaged in an accident.
*Personal Injury Protection
In the event of an accident, Personal Injury Protection or PIP insurance will for you and your passenger’s medical expenses. Although in Nebraska, Personal Injury Protection is not a requirement, they are highly recommended by many insurance companies, especially if you are not in the position of dealing with extensive medical expenses. PIP also covers medical expenses and lost wages that result from car accidents.
*Underinsured/Uninsured Car Insurance Coverage
Underinsured or uninsured car insurance coverage takes effect when you or your passenger are injured in an accident where the driver-at-fault has no or insufficient insurance coverage. Underinsured/uninsured car insurance coverage will cover medical expenses, lost wages/income or any other general damages.
And lastly, after you have purchased your auto insurance policy, you should visit the Nebraska Department of Motor Vehicles to clear up any questions that you may have. Take note that the state wants to see documentation proving that you have a valid car insurance policy, and so there may be some paperwork involved.