What Area of Nebraska Has the Highest Auto Insurance Premiums?


American flag shaped as Nebraska with blue backgroundNebraska motorists have access to some of the lowest premiums in the nation. According to the National Association of Insurance Commissioners, the Cornhusker State in 2008 had the sixth lowest average premium in the country for a policy with liability, comprehensive and collision coverage. But drivers in certain parts of the state tend to have greater access to those low premiums than drivers in other parts.

Specifically, state data from 2010 shows that motorists in northeastern Omaha tend to get the highest quotes for a policy, while drivers in Lincoln tend to have access to the lowest quotes.

That’s according to a Nebraska auto insurance premium comparison published in 2010 by state regulators, which includes a total of 672 quotes. Those quotes reflect sample rates from the state’s 14 largest insurers for six different driver profiles and eight different geographic territories.

The average quote for a driver in northeastern Omaha was about 34 percent higher than the average quote for a driver who lives in Lincoln.

Lincoln was not the lowest priced territory in every instance, and northeastern Omaha was not always the highest priced territory, but they were on average.

Insurers Weigh Geographic Factors Differently

The size of the difference in geographic pricing largely depends on the driver profile and the company providing the quote.

On average, the difference between the highest priced territory and the lowest priced territory for the same insurer was 51 percent, which is high on its own. But the difference for certain coverage providers and driver profiles were huge in some cases. In one instance, the premium in the highest priced area was nearly three times the size of the premium quoted for the lowest priced area.

The smallest difference between the most expensive and the least expensive area for the same insurer was 28 percent.

The geographic areas used in the comparison were South Sioux City; Lincoln; eastern and western Nebraska; and northwestern, northeastern, southwestern and southeastern Omaha.

Geographic Location Affects Premiums around the Country

Every state in the country allows insurers to factor in a driver’s geographic location to help decide how cheap car insurance will be, although some states have restrictions on how insurers may break up the territories.
Nebraska in the color blue
When a new policyholder gives an insurance company his or her address, the company will analyze its claims history for other drivers in the area. If motorists in a close proximity file claims more frequently, or if the claims they file are on average more expensive than in other areas, the motorist is likely to get a surcharge. The opposite is true for areas with low claims frequency and small average claims size.