Nebraska Car Insurance Laws
Residents who wish to operate a motor vehicle in the Cornhusker State are required to not only meet Financial Responsibility laws, but also be able to provide proof that such coverage has been purchased. Luckily, resident motorists are allowed multiple ways of meeting these requirements before operating an automobile. With a total of 34,665 crashes occurring in 2009 and the potential fines or jail time for driving uninsured, motorists are urged to obey NE automobile coverage laws and consider the many options available to vehicle owners.
Financial responsibility is an important requirement for licensed drivers since these laws are in place to help ensure that motorists are able to prove that they can adequately pay for resulting injuries or property damage of an at-fault accident. To meet these requirements many people choose to purchase Nebraska auto insurance policies, which must consist of liability coverage with limits of at least $25,000 for bodily injury or death of a single person and $50,000 per accident, as well as $25,000 property damage liability. It should be noted that these limits are only those required by the state, and that drivers may choose to purchase higher amounts of protection.
As opposed to purchasing a protection plan, drivers may also choose from a series of alternative methods of meeting state financial responsibility requirements. Of the options that are available, residents may obtain a Certificate of the State Treasurer that bears the seal of the Department of Motor Vehicles (DMV) which states the person in question has deposited $75,000 in cash or securities. Drivers may also obtain a Certificate of Self-Insurance that bears the seal of the DMV, or a Property Bond with at least two sureties who each own real estate within Nebraska and have been approved by a judge. This Property Bond must also feature an official DMV seal.
Simply meeting state financial requirements, however, may not be enough for every motorist; residents must also be able to verify that they are adequately covered and retain that proof of insurance within the insured vehicle. Of Nebraska's 1,380,859 licensed drivers, nearly all of them must be able to provide acceptable proof that either a vehicle protection plan has been purchased or that the motorist in question is financially responsible through other means. One of the most common ways of accomplishing this is through a Certificate of Insurance, which is generally issued by an automobile policy provider. This documentation typically features the name of the insurer, the names of the insured policy number, year and make of the covered vehicle, effective and expiration dates of coverage, and either the model type of the automobile or the last three digits of the Vehicle Identification Number.
Motorists may also present a binder as adequate proof as long as it contains the same information and meets the same requirements as a Certificate of Insurance (except for the policy number). It's important for vehicle owners to note that no photocopy will be accepted when it comes to providing proof of meeting state financial responsibility laws, and that only original documentation will suffice. If caught driving uninsured, a NE motorist may face imprisonment in county jail for up to six months, a fine of up to $500, or both. To avoid these consequences residents are urged to consider meeting state financial responsibility laws by purchasing affordable auto insurance that contains a sufficient amount of coverage.