What Auto Insurance Coverage Is Required in Nebraska?

If you drive in Lincoln or elsewhere in Nebraska, you need to understand what insurance the state requires—and what those minimum requirements actually protect.

Nebraska’s minimum auto liability limits are commonly written as 25/50/25. However, liability insurance is not the only protection addressed by Nebraska law.

Here’s what drivers should know before choosing their coverage.

What Are Nebraska’s Minimum Auto Insurance Requirements?

Nebraska’s minimum automobile liability coverage is:

• $25,000 bodily injury liability per person: The maximum available under this limit for bodily injury to one person in a covered accident.

• $50,000 bodily injury liability per accident: The total bodily injury limit for two or more injured people in a covered accident, subject to the per-person limit.

• $25,000 property damage liability per accident: The maximum available under this limit for covered damage to other people’s property.

These limits are often abbreviated as 25/50/25.

Liability insurance generally helps pay covered damages for injuries or property damage you cause to others when you’re legally responsible for an accident.

These minimums establish a starting point. They do not guarantee that every accident-related expense will be fully covered.

Is Uninsured Motorist Coverage Required in Nebraska?

Yes. Nebraska law also requires uninsured and underinsured motorist bodily injury protections in qualifying auto liability policies for vehicles principally garaged in the state.

Uninsured motorist coverage can help protect insured people who are injured by a driver who has no applicable liability insurance, subject to policy conditions.

Underinsured motorist coverage can help when an at-fault driver has liability insurance, but the available coverage is insufficient for covered bodily injury damages.

Nebraska Revised Statute § 44-6408 specifies minimum bodily injury limits of $25,000 per person and $50,000 per accident for uninsured motorist coverage and for underinsured motorist coverage.

Higher limits may be available, depending on the insurer’s rating plan, rules, and policy options.

These coverages should not be confused with collision coverage or uninsured motorist property damage protection.

Does Nebraska Require Full Coverage Auto Insurance?

No. Nebraska does not generally require drivers to purchase collision and comprehensive coverage merely to meet the state’s minimum automobile liability requirements.

However, lenders and leasing companies commonly require physical damage coverage as a condition of financing or leasing a vehicle.

The phrase “full coverage” is informal. It does not refer to one standardized insurance policy or guarantee protection against every type of loss.

A policy described as full coverage commonly includes:

• Liability insurance

• Collision coverage

• Comprehensive coverage

Additional protections and limitations vary by policy.

For a more detailed comparison, read Liability vs. Full Coverage Auto Insurance: What’s the Difference?.

What Happens If You Only Carry Nebraska’s Minimum Coverage?

Meeting the legal minimum does not mean your liability limits will be sufficient for every accident.

Consider a hypothetical example:

A driver causes a covered accident that results in $40,000 in damage to another person’s vehicle and other property.

If the driver’s property damage liability limit is only $25,000, the insurance policy may pay up to that limit for the covered property damage claim, subject to its terms.

The driver could remain personally responsible for the amount exceeding the available insurance coverage.

The same general concern applies to bodily injury claims, which can involve medical expenses, lost income, and other damages.

Consider whether higher liability limits make sense for your financial circumstances.

What Additional Auto Insurance Coverage Should Nebraska Drivers Consider?

Beyond the state’s minimum requirements, drivers may want to evaluate:

Higher Liability Limits

Increasing liability limits can provide additional financial protection when a covered accident results in damages exceeding the legal minimums.

Collision Coverage

Helps pay for covered damage to your vehicle caused by a collision, subject to the deductible and policy terms.

Comprehensive Coverage

Helps pay for certain covered losses to your vehicle that are not collisions, such as theft, hail, or other covered events.

Medical Payments Coverage

Can help pay certain covered medical expenses following an accident, subject to the policy’s limits and terms.

Rental Reimbursement

Can help with eligible transportation or rental costs after a covered loss, subject to the policy’s conditions and limits.

Roadside Assistance

May provide help with covered roadside emergencies, depending on the policy and assistance program.

Choosing appropriate protection depends on your vehicle, budget, financial situation, and coverage needs.

Do You Need Proof of Insurance in Nebraska?

Nebraska requires proof of financial responsibility for most registered motor vehicles, subject to specific exceptions.

The Nebraska Department of Motor Vehicles explains that acceptable evidence can include a qualifying insurance certificate and other legally recognized forms of financial responsibility.

Evidence of insurance may be displayed electronically when permitted.

Drivers should ensure their coverage remains active and that they can provide acceptable evidence when required.

For official guidance, see the Nebraska DMV insurance requirements.

How Much Auto Insurance Should You Carry in Nebraska?

The legal minimum may not be the best amount for every driver.

When reviewing your policy, consider:

• The assets and savings you want to protect.

• The potential cost of injuries or property damage in an accident.

• Whether your vehicle is financed or leased.

• The vehicle’s value and whether you could afford to replace it.

• How much deductible you could comfortably pay.

• Whether higher liability limits fit your budget.

A licensed insurance agent can help explain available coverage choices and how different limits affect your protection.

Review Your Auto Insurance Coverage with a Local Lincoln Agency

At T-Rex Agency in Lincoln, Nebraska, our team can help you review your existing auto insurance coverage, understand your limits, and explore available options.

Whether you’re purchasing a new vehicle, reviewing your renewal, or comparing insurance options, understanding what your policy covers is an important first step.

Call T-Rex Agency at 402-465-8223 or request an auto insurance quote online.

Explore our Auto Insurance coverage options in Lincoln, Nebraska to learn more about available protection.

Frequently Asked Questions

What is the minimum car insurance required in Nebraska?

Nebraska’s minimum auto liability limits are $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 per accident for property damage. Nebraska also requires uninsured and underinsured motorist bodily injury protections in qualifying auto liability policies.

Is Nebraska a no-fault insurance state?

No. Nebraska generally uses an at-fault liability system for auto accidents. Responsibility for covered damages depends on the circumstances, applicable law, and policy terms.

Is comprehensive insurance required in Nebraska?

Comprehensive coverage is not generally required by Nebraska’s minimum auto liability insurance law. However, a lender or leasing company may require it.

Can I drive with liability-only insurance in Nebraska?

Liability-only is an informal term. You can generally meet Nebraska’s auto liability requirements without purchasing collision or comprehensive coverage, but qualifying policies must also meet applicable uninsured and underinsured motorist requirements.

Do I need more than the minimum liability limits?

Not every driver has the same needs. The state’s minimum liability limits may be insufficient for a serious accident. Higher limits may provide additional financial protection.

Official Nebraska Sources

For the requirements discussed above, consult these official state sources:

• Nebraska Revised Statute § 60-346 — Proof of Financial Responsibility

• Nebraska Revised Statute § 60-509 — Automobile Liability Limits

• Nebraska Revised Statute § 44-6408 — Uninsured and Underinsured Motorist Coverage

• Nebraska DMV — Insurance Requirements

• Nebraska Revised Statute § 25-21,185.09 — Comparative Negligence

This article provides general information, not legal advice. Coverage is subject to policy terms, conditions, limits, and exclusions.