Lincoln, NE Car Insurance
Experts break down auto insurance costs, coverages, companies, and more.
If you own a vehicle in Lincoln, Nebraska, you are required by law to cover it with car insurance. From fender-benders on O Street to multi-car collisions on Interstate 80, a solid auto insurance policy can prevent you from experiencing large financial losses as a result.
Shopping for car insurance is easy when you work with a local independent agent. These agents can provide you with a variety of customized car insurance quotes so you can be sure you are buying your policy at a competitive price. Find an independent insurance agent near you to get started.
How Much Does Car Insurance Cost in Lincoln, NE?
The average cost of car insurance in Nebraska is lower than the national average. And in Lincoln, it is even lower. This is great news for area residents who are looking for an affordable policy.
- National average annual car insurance cost: $1,311
- Nebraska average annual car insurance cost: $1,086
- Lincoln, NE average annual car insurance cost: $768
Of course, these average rates can only give you a general idea of what you might actually be expected to pay. Car insurance costs can vary significantly from one driver to the next because they are based on several factors like:
- The make, model, and year of the vehicle(s) you are insuring
- Your age, occupation, marital status, and driving history
- Details about the other licensed drivers in your household
- Whether you own or rent your home
- Your claims history and credit score
- The auto theft and accident rates in the vicinity of your home
- How much liability coverage you are buying
- The coverage options you are including in your policy
You can typically earn rate reductions if you bundle your car insurance with other policies such as homeowners insurance or renters insurance.
You may also qualify for rate reductions if you have a long, safe driving record or are a student with good grades. Be sure to ask about car insurance discount opportunities when buying your coverage.
What Are the Minimum Car Insurance Requirements in Lincoln, NE?
Every state imposes its own minimum coverage requirements for car insurance. In Nebraska, all insurance policies must include:
- Liability insurance: This covers other people’s injuries and property damage if you are at fault for a collision. Your car insurance must include, at a minimum:
- Bodily injury liability insurance: $25,000 per person/$50,000 per accident
- Property damage liability insurance: $25,000 per accident
- Uninsured/underinsured motorist insurance (UIM): This covers treatment of injuries for you and your passengers if you are hurt in an accident caused by an uninsured or underinsured driver. Your policy must include, at a minimum:
- UIM bodily injury insurance: $25,000 per person/$50,000 per accident
When deciding how much coverage to purchase, keep in mind that if you cause a collision in which other people are seriously injured, their medical costs can easily exceed what a minimum liability coverage policy can pay for.
If your liability limits are not high enough to meet your financial responsibilities, you will need to make up the difference out of pocket. That is why many drivers in Lincoln, Nebraska opt to purchase car insurance that has higher-than-required liability limits.
Supplementing with an umbrella insurance policy enables you to boost your liability coverage limits even more.
What Else Can Car Insurance Cover in Lincoln, NE?
In addition to the mandatory liability and uninsured motorist coverage mentioned above, your car insurance provider will offer a variety of coverage options. Some options you may want to include in your Lincoln auto insurance policy include:
- Full coverage: This is typically required by lenders if you are financing your car and by dealerships if you are leasing it. Full coverage includes:
- Collision insurance: This covers the cost to repair or replace your vehicle if is it damaged or totaled in a collision, regardless of fault.
- Comprehensive insurance: This covers the cost to repair or replace your vehicle if it is damaged or totaled due to a non-collision event like a windstorm, flood, or tornado.
- Medical payments insurance (MedPay): This provides some coverage for medical treatments if you or your passengers are injured in a collision, regardless of fault.
- Towing & roadside assistance: This covers the costs associated with calling for help if your car becomes disabled, such as if you get a flat tire, run out of gas, or need a jump start.
- Gap insurance: This can cover the gap between what your car is worth and what you currently owe for it if it is totaled in a covered event. New cars can depreciate quickly, so this coverage may be beneficial during the first year or two of new vehicle ownership.
- Rental car reimbursement: This covers the cost of renting a vehicle while your car is being repaired following a covered event.
Reviewing coverage details and costs for each of these options can help you determine which, if any, are a good fit for you and your family.
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What Is the Penalty for Driving without Insurance in Lincoln, NE?
In Nebraska, driving without insurance is a Class II misdemeanor. Penalties for this infraction can include:
- A fine of up to $100.
- The suspension of your driver’s license and registration until proof of insurance is provided.
- The need to pay a $50 license reinstatement fee and a $50 registration renewal fee to get your license and registration back.
- The requirement to maintain an SR-22 for three years.
Additionally, your car insurance rates are likely to increase following an uninsured driving conviction. Despite these penalties, some people drive without insurance anyway. Fortunately, the percentage of uninsured drivers in the Cornhusker State is around half the national rate.
- Percentage of US drivers who are uninsured: 13.0%
- Percentage of Nebraska drivers who are uninsured: 6.8%
If you are in a collision that was caused by an uninsured driver, that person is responsible for compensating you and your passengers for any resultant property damage and necessary medical treatments. However, this money can often be difficult to collect if you have to do it on your own.
Uninsured motorist insurance, which is required in Nebraska, was created to ensure that you receive timely compensation for medical bills without the need to take legal action against the at-fault driver. Property damage can be covered by collision insurance.
What Is the Auto Theft Rate in Lincoln, NE?
The auto theft rate in Nebraska is a bit higher than the national rate; but in Lincoln, the rate is much lower. This is not to say that the risk does not exist. Residents of this city report around 400 vehicle thefts a year.
- National auto theft rate per 1,000 vehicles: 2.29
- Nebraska auto theft rate per 1,000 vehicles: 2.53
- Lincoln, NE auto theft rate per 1,000 vehicles: 1.56
Be aware that your car insurance can compensate you for a stolen vehicle, but only if your policy includes comprehensive (or “other than collision”) coverage.
This optional insurance covers against more than just auto thefts. It can also reimburse you for repair costs related to non-collision events such as if a tree falls on your vehicle, or if your car is totaled in a flood or a garage fire.
If you are leasing or financing your car, chances are good that you have this insurance already. If not, talk to a local independent agent to find out how much it will cost you to include comprehensive coverage in your Lincoln, Nebraska car insurance policy.
How Can an Independent Insurance Agent in Lincoln, NE Help?
When you are looking for the best auto insurance policy to meet your coverage and budgetary needs, look no further than a local independent insurance agent.
These experienced insurance professionals work for you, not for a particular insurance company. This means they are free to shop around to find you a policy that includes all the coverage you want at a price you can afford.
Contact an independent insurance agent near you to get answers to your insurance-related questions and to start comparing customized quotes from some of the best car insurance companies in Lincoln, NE.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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