Nebraska has cheap average auto insurance rates for state-required minimum coverage. Despite being 4.5 times more expensive than a liability only policy, the average cost of a full coverage policy remains below the national average, making it reasonably affordable. With a high auto ownership rate per capita, matching the number of cars to people, the state boasts a lower uninsured driver ratio of 9.3% compared to the US average. Known for its affordability, Nebraska is among the most economical places to live, benefitting from a strong income-to-expense ratio.
Nebraska Vehicle Insurance Requirements
Here are the minimum liability coverage requirements;
- $25,000 for bodily injury per person.
- $50,000 total for bodily injury per accident.
- $25,000 for property damage.
Uninsured/Underinsured Motorist Bodily Injury coverage is required as well with at least below limits;
- $25,000 in uninsured/underinsured motorist bodily injury per person
- $50,000 in uninsured/underinsured motorist bodily injury per accident
If you’re hit by a driver with no or insufficient insurance coverage, uninsured/underinsured motorist bodily injury coverage can pay for your and your passengers’ medical expenses and related losses.
Driving with the minimum mandatory coverage is legally allowed, but it’s wise to consider broader coverage. Start by raising your Liability coverage limits to shield yourself from potential third-party claims and legal repercussions in accidents you’re at fault for. Furthermore, considering Nebraska’s annual average of over 50 tornadoes and the frequent use of cars for daily commuting, including Collision and Comprehensive coverage in your policy can offer reimbursement for damages to your vehicle resulting from accidents, bad weather, theft, vandalism, fire and more.
Nebraska Auto Insurance Costs
Spanning a wide expanse of land in the Great Plains, the Cornhusker State boasts a dispersed population. Its sole metropolitan area is Omaha, housing around 430,000 residents, while Lincoln, the other major city, has approximately 270,000 residents. These demographic characteristics typically contribute to affordable rates due to the moderate risks of accidents and vehicle-related crimes. This trend holds true here as well.
Minimum state required coverage costs $359 on average and it is $263 cheaper than the country average. The average full coverage car insurance premium is similarly cheap at $1,624 and $390 lower than the US average. However, there is a substantial gap between full coverage and basic liability only policies as full coverage costs 4.5 times more.
The Most Affordable Vehicle Insurance Companies Here
If you have a clean driving record, a solid credit score, and own a standard vehicle, yet find yourself spending a substantial amount on insurance, it is advisable to gather several quotes during your next policy renewal. To secure the most economical rates regardless of your location, it’s essential to engage in thorough comparison shopping and identify the insurer that best suits your situation. Here are some of the cheapest auto insurance companies in NE to help you in your search.
- Farmers Mutual of Nebraska
- Nationwide
- Farm Bureau
- North Star Mutual
- State Farm
The Omaha-Council Bluffs metropolitan region boasts a population of approximately 1 million people. Omaha, the largest city, accounts for 435,000 residents. As the capital and second largest city, Lincoln also holds significance. Generally, larger cities and metropolitan areas tend to experience higher insurance rates due to heightened accident and vehicular crime rates. However, car insurance premiums in most Nebraska cities, including Omaha and Lincoln, don’t deviate significantly from the state average. Premiums are slightly elevated in Omaha and slightly lower in Lincoln on average.
Important Nebraska Auto Insurance and Driving Facts
- The US Department of Transportation reports that 82% of Nebraska residents commute to and from work using their personal vehicles.
- Nebraska is one of the states with one of the highest hail damage claims. This state has over 50 tornadoes every year too. Comprehensive coverage auto insurance includes hail and tornado damages as well as fire, theft and vandalism.
- Nebraska boasts an impressive average credit score of 731, ranking among the highest in the nation according to Experian. This is particularly positive since a poor credit score can lead to an average car insurance premium increase of 84%, which is almost on par with the impact of having a DUI on your record (88% increase on average) in this state, as reported by Forbes.
- Ford F-150 is the most popular vehicle in Nebraska. Other popular cars in this state are Chevy Malibu, Chevrolet Silverado, Ram 1500, Chevrolet Equinox and Jeep Cherokee.
- According to IIHS, Nebraska falls among the states with a particularly pronounced urban-rural fatality gap, as a striking 72% of all road fatalities take place on rural roads.
- Deteriorating conditions of both rural and urban roads might contribute to fatal accidents. The U.S. Department of Transportation finds that a notable 59% of Nebraska’s major roads are classified as being in subpar or average condition.
- Nebraska’s estimated seat belt usage was notably low at 81% in 2021, which could also serve as another contributing element to fatalities resulting from crashes.
- Driving without insurance in NE is a Class III misdemeanor. The penalties may include fines of up to $500, along with license and registration suspension, reinstatement fees, and even the possibility of jail time.
Even if you’re comfortably managing your vehicle insurance premiums in Nebraska, it’s a good practice to annually review your policy and obtain multiple quotes. This ensures that you continue to pay a reasonable premium and don’t overlook better coverage or lower rates from other providers. Opt for cost-effective options when viable alternatives exist.