Nebraska Car Insurance Laws: How Much Coverage Do I Need?

Nebraska drivers must carry liability insurance and uninsured motorist coverage that meets the state-mandated limits of 25/50/25.
Written by Sarah Gray
Edited by Jessica Barrett
Reviewed by Brice Regling
Nebraska drivers must carry an
auto insurance
policy that includes at least $25,000 per person and $50,000 per accident in bodily injury liability coverage, $25,000 per accident in property damage liability coverage, and uninsured/underinsured motorist bodily injury coverage with matching limits.

Nebraska auto insurance minimum requirements

Nebraska drivers must prove financial responsibility to operate a motor vehicle legally. The easiest way to do this is by purchasing an
auto insurance
policy that meets or exceeds the minimum coverage limits set by
Nebraska’s car insurance
Type of car insurance coverage
Minimum insurance limit
Bodily injury liability (per person)
Bodily injury liability (per accident)
Property damage liability (per accident)
Uninsured motorist bodily injury (per person/accident)
Liability insurance is classified into two types of coverage: 
  • Bodily injury liability (BIL)
    helps cover the cost of personal injuries and lost wages for the other driver up to your policy limits if you cause an accident.
  • Property damage liability (PDL)
    helps cover the cost of personal property damage up to your policy limits for any other parties involved in an accident you cause.
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Uninsured/underinsured motorist coverage
(UM/UIM) is insurance that pays for your medical bills if you’re involved in a car accident with an at-fault driver who doesn’t have enough or any liability car insurance coverage to pay for your expenses.
You can use the Jerry app to select specific coverages you want included in your policy, and get quotes from top insurance companies for those coverages in minutes.

Other options to prove financial responsibility in Nebraska

While buying car insurance is the simplest way to maintain proof of financial responsibility in Nebraska, drivers do have other options1:
  • Make a $75,000 cash or securities deposit with the Nebraska State Treasurer
  • Execute and file a surety bond or property bond for $75,000 with the Nebraska Department of Motor Vehicles (DMV)
  • Obtain a self-insurance certificate issued by the Nebraska DMV—this option is only available if you have at least 26 vehicles registered in your name
If you have $75,000 lying around and some time to spend at the DMV, that’s great—but for most of us, car insurance is the cheapest and easiest way to meet Nebraska’s financial responsibility requirements. 

Is minimum liability coverage the most cost-effective option?

No. Despite relatively high limits, Nebraska’s state minimum insurance is typically insufficient to cover the entire cost if you cause a car accident or are involved in a crash with an uninsured driver. 
Here’s why:
  • If you cause a serious accident, you may not be able to avoid getting sued if you only carry state-minimum coverage. Data published by the Insurance Information Institute (III) indicate the average bodily injury claim in 2021 was $22,734, while the average property damage claim was $5,314.2 Following a severe accident, these claim payouts will be much higher—and if your limits aren’t high enough to foot the bill for all the other driver’s medical expenses and property repairs, you’ll be in danger of a lawsuit.
  • Uninsured motorist coverage only applies when you’re less than 50% at fault. If you’re found mostly at fault in an accident you’ll have to pay out of pocket for your medical expenses.
  • Liability coverage will not pay for damage caused by weather, theft, or vandalism.
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Our recommendation for Nebraska drivers
  • $100,000 per person/$300,000 per accident of bodily injury liability coverage
  • $100,000 of property damage liability coverage
  • Collision coverage
    comprehensive coverage
    to repair or replace the vehicle in the event of a total loss

Expert Insurance Agent Insight

Vice President Insurance Operations
A general rule that I recommend is to carry enough coverage to protect your current and future assets – at least $100,000/$300,000 of liability coverage is recommended, but you may need more coverage depending on your financial situation.
In Nebraska, the average cost of minimum liability coverage is $108 per month or $1,298 per year, while
full coverage insurance
costs around $2,288 per year. 
Will you pay a bit more for full coverage? Yes. 
Is full coverage still the more cost-effective option? Also yes—the added legal and financial security of higher coverage limits is well worth the slight increase in insurance costs.
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Remember: Car insurance premiums are highly individualized since car insurance companies in Nebraska look at personal factors like age, location, driving record, vehicle type, and more when they calculate car insurance rates and determine discounts.
The only way to ensure you’re getting the best price is to compare car insurance quotes from multiple providers.
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If you have a car loan or lease, expect your lender to require you to carry collision and comprehensive coverage in addition to Nebraska state-minimum insurance. For leases, lenders typically also require 100/300/100 liability limits.

Optional auto insurance coverage in Nebraska

For peace of mind, consider getting additional coverage. Here are a few coverage options worth looking into:
  • Collision insurance
    : Helps pay for vehicle repairs caused by a collision with another vehicle or stationary object.
  • Comprehensive insurance
    : Pays for the costs of non-collision-related damage to your vehicle, like hail, flood damage, theft, vandalism, and more.

Penalties for driving without insurance in Nebraska

If you’re caught
driving without insurance
in Nebraska—or with no
proof of insurance
for law enforcement—you could face the following penalties3:
You’ll also have to
file an SR-22 certificate
with the Nebraska DMV, usually for three years.


What is the minimum car insurance in Nebraska?

Nebraska law requires all registered vehicles to be insured and their drivers to carry proof of insurance for a policy with at least $25,000 per person/$50,000 per accident in bodily injury liability coverage, $25,000 per accident in property damage liability coverage, and uninsured motorist bodily injury and underinsured motorist bodily injury coverage with matching limits.

Is comprehensive insurance required in Nebraska?

No. Nebraska only requires liability and uninsured/underinsured motorist coverage. But if you lease or finance a vehicle, your lender will likely require you to purchase both comprehensive and collision coverage.

Is Nebraska a no-fault insurance state?

No, Nebraska is not a
“no-fault” insurance state
. The at-fault driver in a car accident in Nebraska must pay the not-at-fault drivers’ and passengers’ medical bills and for repair or replacement of damaged personal property under the state’s
or “tort” law.

What is considered full coverage in car insurance in Nebraska?

In Nebraska, as in the rest of the U.S., “full coverage” refers to a car insurance policy that includes collision and comprehensive insurance in addition to required liability coverages, and any other coverage mandated by your state’s minimum insurance requirements. It’s the standard level of coverage needed by most drivers. 

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