Nebraska car insurance laws and requirements: What is changing in 2026

Nebraska car insurance laws

Nebraska law requires drivers to maintain at least 25/50/25 in car insurance coverage. In Nebraska, drivers are also required to carry UIMBI and UMBI. This insurance helps pay for injuries and property damage when you cause an accident. However, if accident expenses exceed the policy limits, you will be responsible for paying the remaining costs yourself.

These limits are in place to ease the financial burden for drivers who cause an accident and for the victims. The at-fault driver knows their insurer will cover medical expenses and property damage up to a certain amount, and victims can more readily access funds to pay for accident costs.

However, a serious crash can generate medical and repair bills that exceed the state minimum limits. Once the available coverage is exhausted, the at-fault driver will be personally responsible for the unpaid amount.

Nebraska car insurance requirements

Nebraska drivers must carry liability insuranceLiability insurance covers sums that an insured becomes legally obligated to pay because of bodily injuries or property damage, or financial losses caused to other people. and UIMBI and UMBI. The minimum liability limit is 25/50/25. These minimum limits help pay for injuries and property damage after an accident, but if costs exceed your policy limits, you will be responsible for the remaining amount.

Nebraska requires the following coverage:

Liability. There are two parts to liability coverage. First, bodily injury liability pays medical costs associated with an accident, such as doctor visits, surgery, and prescriptions. Second, property damage liability covers repairing or replacing items such as vehicles, fences, or buildings.

Nebraska liability minimums are 25/50/25.

Uninsured/Underinsured motorist coverage (UM/UIM). Uninsured and underinsured motorist coverageAn auto insurance coverage that pays for injuries or damage if you're in an accident with a driver who has no insurance or not enough insurance. helps pay for your medical costs and property damage if the at-fault driver has little or no car insurance. Your insurer would cover expenses up to your limits in addition to any payments from the other insurer.

Nebraska requires uninsured motorist coverage of 25/50.

The average cost of a minimum coverage policy is $369. However, Farmers Mutual of Nebraska has the lowest minimum car insurance rates, averaging $225.

Farmers Mutual of Nebraska has the lowest minimum car insurance rates, averaging $225.

The table below shows the average rates of the top insurers for minimum coverage in Nebraska.

Company	Average annual premium	Average monthly premium
Farmers Mutual of Nebraska	$225	$19
GEICO	$247	$21
Progressive	$333	$28
Auto-Owners	$375	$31
Shelter Insurance	$436	$36
Iowa Farm Bureau	$476	$40
Allstate	$645	$54
USAA	$299	$25

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Nebraska car insurance cost for minimum coverage limits

The average cost of minimum coverage car insurance in Nebraska is $369. Farmers Mutual of Nebraska offers the cheapest average policy at $225 annually. However, your actual rate will depend on the company you choose and personal factors such as your age, address, and driving record.

State minimum coverage limit	25/50/25
Average annual premium	$369
Average monthly premium	$31

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Are the minimum coverage requirements changing in 2026 in Nebraska?

The minimum car insurance requirements in Nebraska will remain the same in 2026. Drivers who already meet the state's mandatory coverage limits do not need to change their policies. If the law changes in the future, insurers will notify customers about the new requirements and any effect on premiums.

Why do limits change?

"Several states have minimum requirements of property damage of $10,000-$25,000," says Zack Pope, agency manager at David Pope Insurance in Missouri. "[Given] the current values of vehicles, that's extremely antiquated coverage values and a main reason that I personally do not offer less than 100/300/100 to customers. It is significantly easier to see a car on the road that is valued at $100,000 than it has been in the past."

What does minimum car insurance cover in Nebraska?

Minimum car insurance in Nebraska covers certain accident-related expenses up to the limits required by law. Liability coverage pays for injuries and property damage you cause to others. These coverages pay for injuries, property damage, and other losses included under Nebraska's minimum insurance requirements.

Nebraska requires drivers to carry at least a minimum amount of car insurance to help offset accident costs.

Nebraska drivers are required to carry liability coverage. Bodily injury liability helps pay for injuries you cause to others in an accident. Property damage liability covers items damaged in an accident, such as another vehicle, fence, or other property.

Nebraska is a no-fault state, meaning your insurer pays for your injuries and damages regardless of who caused the accident. The law requires you to carry personal injury protectionPersonal injury protection (PIP) pays for your medical, hospital and funeral expenses resulting from a car accident, regardless of who's at fault. (PIP) to pay medical costs, such as doctor visits and prescriptions.

Uninsured and underinsured motorist coverage is also required. Uninsured motorist coverage helps pay for coverage when the at-fault driver doesn't have car insurance, and underinsured coverage assists when the at-fault driver doesn't have enough car insurance to cover injury and property damage costs. Without these coverages, you would have to pay for medical and repair costs that the other driver's insurance didn't cover. You may be able to opt out of this coverage.

PEOPLE ASK:

Is Nebraska minimum car insurance enough?

Minimum car insurance may not provide enough protection in Nebraska. A serious accident can easily result in expenses above the required limit of 25/50/25, leaving you responsible for the remaining amount. Minimum liability insurance also does not cover damage to your vehicle, regardless of whether it is damaged in a collision, stolen, or affected by weather. You need to add comprehensive and collision coverage; collision coverageCollision coverage helps pay for repairs or replacement of your car if it's damaged in an accident, regardless of who is at fault and is subject to a deductible. pays for crash damage to your vehicle, and comprehensive insurance covers non-collision losses such as theft, fire, hail, and falling objects.

How much car insurance is enough in Nebraska?

The right amount of car insurance in Nebraska depends on your income, savings, assets, vehicle value, and risk of being sued after an accident. Drivers with significant assets should consider higher liability limits, while drivers with financed or leased vehicles will generally need collision and comprehensive coverage.

For example, if you are financially stable and can afford to pay out of pocket for medical costs and repairs, you may keep insurance limits low. However, you may be sued for the cost difference if you have a sizeable net worth and don't carry enough insurance to cover expenses.

Additionally, if you drive very little or have a short commute, your chances of causing an accident are relatively low. Also, you may choose to skip coverages such as collision and comprehensive if your car isn't worth much, or you can afford to pay for a new vehicle if yours is damaged. However, if you have a loan or lease, you will be required to carry this coverage by your lender.

Consider your financial situation when determining how much car insurance you need.

Nebraska penalties for driving without car insurance

Driving without required car insurance in Nebraska can result in fines, a suspended driver's license, vehicle registration penalties and higher future insurance rates. Penalties become more severe after repeated violations. You will also have to pay accident-related expenses out of pocket if you cause a crash while uninsured.

Failing to carry Nebraska car insurance has penalties, including those listed below. Keep in mind that repeated infractions have more severe penalties, such as jail time.

Fines	$50+
Other penalties	License and registration suspension
Jail time	No

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Nebraska minimum coverage cost by age group

Minimum coverage rates in Nebraska vary significantly by age because insurers use driving experience and claim risk when setting premiums. Younger drivers generally pay the highest rates, while premiums often decrease as drivers gain experience. Farmers Mutual of Nebraska is the cheapest for teens, and Farmers Mutual of Nebraska is the cheapest for adults.

The table below breaks down the cost of car insurance for various age groups. Farmers Mutual of Nebraska has the best rates for teens, with minimum coverage averaging $596. Farmers Mutual of Nebraska offers the cheapest coverage for adults at $213.

Additionally, females and males pay different rates. The average rate for a 40-year-old female is $366, and the average rate for a 40-year-old male is $372, a difference of $6.

Nebraska minimum coverage cost by city

Minimum coverage is cheapest in Hastings, where drivers pay an average of $362. Omaha has the highest average minimum coverage rate in Nebraska at $526. Differences in traffic, accident claims, theft, and local repair costs can cause premiums to vary from one city to another.

The table below shows average minimum coverage rates for cities in Nebraska.

City	Average annual premium	Average monthly premium
Bellevue	$489	$41
Columbus	$386	$32
Fremont	$395	$33
Grand Island	$387	$32
Hastings	$362	$30
Kearney	$379	$32
Lincoln	$440	$37
Norfolk	$376	$31
Omaha	$526	$44
Papillion	$462	$38

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Optional car insurance coverage in Nebraska

The minimum coverage required in Nebraska does not protect your vehicle against most types of damage. Optional insurance, such as collision and comprehensive, will pay to repair or replace your car. Rental reimbursement, roadside assistance, and gap coverage can also help with costs that are not included in a minimum liability policy.

Drivers may choose optional coverages such as:

Collision coverage. Collision coverage pays for damage to your vehicle if you cause an accident.
Comprehensive coverage. This coverage pays for damage to your car unrelated to an accident, such as fire, flood, falling debris, and hail.
Rental car coverage. This pays for a rental car if your vehicle is being repaired for a covered claim and usually has time and cost limits.
Roadside assistance coverage. If you run out of gas, need a tire changed, or have a dead battery, roadside assistance will send someone to help.
Gap coverage. Gap coverage pays the difference between what you owe on a car loan and the vehicle's value.

Why do limits change?

Minimum car insurance limits change when state lawmakers determine that existing coverage amounts are no longer sufficient to meet current accident costs. As vehicle prices, repair bills and medical expenses rise, lower liability limits may leave both accident victims and at-fault drivers with large unpaid balances.

Methodology

Insurance.com partners with Quadrant Information Services to field average car insurance rates across all 50 states and Washington, D.C. National and state average rates are based on state minimum coverage and on the following parameters:

40-year-old driver
Honda Accord LX
Good credit
A clean driving record
12-mile commute, 10,000 annual mileage

State laws were gathered from state DMV and insurance department websites.

Learn more about our data and methodology.

Nebraska car insurance laws and requirements: FAQs

Is it mandatory to have car insurance in Nebraska?

Yes. Drivers in Nebraska must maintain the minimum insurance required under state law. Mandatory coverage includes 25/50/25, UIMBI and UMBI, 25/50. Driving without the required policy can result in fines, license or registration penalties, and higher premiums when you purchase insurance again.

Will my bare minimum car insurance cover me in another state?

Yes, your car insurance will cover an eligible claim when you drive in another state. If the state where the accident occurs requires higher liability limits, your policy will automatically adjust to meet those limits for the claim. However, this does not add collision or comprehensive coverage to a minimum policy.

What happens if I drive without car insurance in Nebraska?

If you're caught driving without car insurance in Nebraska, you may face fines, a driver's license suspension, having your vehicle impounded, and increased car insurance rates. Additionally, you may face jail time, especially for multiple violations.