What Are The Types of Car Insurance Coverage?

What Are The Types of Car Insurance Coverage?

Jul 21, 2021

Travel is an essential part of life, especially in Nebraska. Whether you live in Omaha and commute to work or own a farm that requires you to head into town throughout the week, your automobile is an invaluable resource. When you understand the different types of car insurance coverage in Nebraska, you can easily choose a policy which protects you financially in the event of an unexpected accident.

 

Six Common Car Insurance Types

When buying a new vehicle or shopping for car insurance, it’s helpful to understand the common types of coverage available to you. Although numerous insurance options are available for Nebraska drivers, you’ll find that six popular choices are used most frequently. The following is an overview of the benefits of each option.

Insurance TypeDescription
Liability CoverageThis type of car insurance is often required before legally driving a motor vehicle. It has two components: the first covers bodily injuries, which might help pay the costs for another person’s injury following an accident; the second covers property damage you may have caused with your vehicle.
Uninsured/Underinsured Motorist CoverageIf you get hit by someone without adequate insurance to cover the damages, this coverage can help pay for medical bills and sometimes vehicle repairs (in some states).
Comprehensive CoverageThis coverage protects against damage from many sources like hail, fire, vandalism, or theft. It can help replace or repair up to the car's actual cash value, but you’ll often pay a specific deductible before receiving reimbursement for covered claims. Some lenders require this insurance type when leasing or buying a new car.
Collision CoverageWhen you’re involved in an accident with another car, or hit a fence, barrier, or tree, this insurance type could help replace or repair your vehicle up to its actual cash value (minus your deductible). Some vehicle lenders or leaseholders might require this coverage.
Medical Payments CoverageIf an accident occurs, this coverage type might help pay for hospital visits, x-rays, surgeries, and more if the injuries occur due to an automobile accident.
Personal Injury ProtectionThis common insurance type isn’t available in Nebraska, but you may find it in other states. Since Nebraska is an at-fault state, the medical payments (MedPay) coverage provides protection, although it doesn’t offer provisions for lost wages or living assistance.

Other Car Insurance Types to Consider in Nebraska

Another choice you’ll find in Nebraska is an option known as Gap Coverage. This insurance type is a loan or lease payoff which pays the difference between what you owe on a loan from your lender and the actual cash value of the car. Since a vehicle’s value can drop by up to 20% the moment when you leave the dealership, this choice is worth considering when buying heavy-duty trucks, luxury cars, or brand-new vehicles. Additional coverage options to consider include roadside assistance and rental car reimbursement.

What Are the State-Required Car Insurance Limits in Nebraska?

According to current state law, Nebraska requires that all drivers carry a certain level of insurance coverage to legally operate a motor vehicle. If you’re behind the wheel, law enforcement officers can request to see proof of insurance during accidents and routine traffic stops.

To legally own and operate a motor vehicle in Nebraska, you must carry at least liability and uninsured/underinsured motorist coverage. The minimum amount is often described as 25/50/25, which means you’ll be insured for $25,000 in bodily injury and property damage coverage per accident. The $50,000 figure is the maximum dollar amount paid in a single incident. If multiple individuals receive injuries in an accident, those liability limits may be exceeded relatively quickly. Since the minimum property damage limit is only $25,000, there might not be enough coverage available if you are found at fault in an accident with a new or luxury vehicle.

You are not required to carry comprehensive coverage for your vehicle. If you want complete insurance protection for your car, it must be purchased separately as an extra coverage option. However, if an individual is found guilty of driving without insurance, it is considered a Class II misdemeanor, which means a fine of at least $50 gets levied, suspension of the driver's license may occur, and an SR-22 certificate could get filed.

It’s imperative to carry at least the minimum amount of coverage required by the state of Nebraska. If you’re in the market for automobile insurance, or simply have questions about your options, we hope that you’ll reach out and contact us. We’d love the opportunity to meet with you and discuss your specific insurance needs.

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I recommend Tracy Vrba as she has many years in the insurance industry and is highly knowledgeable. We have a great working relationship as she has been able to help many of my real estate buyers. I like that she is independent and able to find the best insurance for each of my...Tamera Toof-Professional RealtorLincoln NE
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