The Personal Auto Policy itself (Parts A through F, insureds, covered autos, exclusions) is covered in the national Personal Auto Policy guide. Nebraska is an at-fault state with compulsory liability insurance, mandatory UM and UIM and modified comparative negligence. This guide covers:

• the Motor Vehicle Safety Responsibility Act and compulsory insurance law (Chapter 60)
• the UM/UIM Insurance Coverage Act (44-6401 and following)
• the auto cancellation statutes (44-514 to 44-520)
• the auto claim rules in 210 NAC 45 and 60

Compulsory insurance and financial responsibility

Minimum limits: 25/50/25 (Neb. Rev. Stat. 60-534)

• $25,000 bodily injury per person
• $50,000 per accident
• $25,000 property damage

What the policy must do

• Cover the named insured and anyone driving with express or implied permission, anywhere in the United States and Canada.
• The insurer's liability becomes absolute once a covered loss occurs (60-538). A binder satisfies the requirement (60-543).

Compulsory insurance rules

• An owner may not let a registered vehicle be driven without a current liability policy, evidence of insurance or proof of financial responsibility (60-3,167).
• Registration requires proof of insurance (60-387). Proof may be shown electronically on a phone, and showing it doesn't consent to a search of the phone (60-387.01).
• Penalties. A violation suspends the owner's license, registration and plates until compliance. The owner must then keep proof of financial responsibility for three years. A driver who can show the prosecutor within 10 days that coverage was in force gets the citation dismissed.

Proof of future financial responsibility

• SR-22. In Nebraska the insurer's certificate is called an SR-22 certificate (60-529). Starting July 1, 2027, it must be filed electronically by an authorized insurer.
• Other forms of proof (60-528): a bond, a deposit of $75,000 per vehicle with the State Treasurer (60-549), or self-insurance for owners of more than 25 vehicles (60-562).
• An insurer can't cancel a certified policy until 10 days after notice (60-544).
• Judgments. An auto judgment unpaid for 60 days leads to suspension of the debtor's license and registration (60-516).

Fault: modified comparative negligence

• A claimant's damages are reduced by their share of fault. Recovery is barred if the claimant's negligence is equal to or greater than the total negligence of all defendants (25-21,185.09). That's a 50% bar.
• With more than one defendant, economic damages are joint and several. Noneconomic damages are several only, by each defendant's share (25-21,185.10).
• A plaintiff who wins a judgment on an insurance policy recovers a reasonable attorney's fee (44-359). This doesn't apply to workers' comp or when the judgment doesn't beat a prior offer.

Uninsured and underinsured motorist coverage (44-6401 to 44-6413)

Required coverage (44-6408)

• Every auto liability policy on a vehicle principally garaged in Nebraska must include both UM and UIM, at $25,000/$50,000.
• On written request, the insurer provides higher limits under its rating plan, but it needn't go above $100,000/$300,000.
• UM/UIM needn't be offered on umbrella or excess policies.

What counts as uninsured (44-6405, 44-6407)

• A vehicle whose insurer denies coverage or becomes insolvent within four years after the accident.
• A hit-and-run with no contact, if it was reported to law enforcement and the facts are corroborated by an independent, disinterested person.
• Not included: government-owned vehicles.

Stacking and priority (44-6410, 44-6411)

• No stacking of UM/UIM limits across vehicles.
• With multiple policies, recovery is limited to the highest single limit.
• Coverage on the occupied vehicle is primary. Other coverage is excess.

Other rules

• Medical payments don't reduce UM/UIM limits, but UM/UIM won't pay again for expenses medpay already paid (44-6409).
• Exclusions. No coverage while occupying a vehicle the named insured or a resident relative owns but didn't insure on the policy. The policy can't exclude a permissive occupant (44-6413).
• UIM settlements. When the insured gives notice of a tentative settlement, the UIM insurer has 30 days to substitute its own payment. Otherwise it loses subrogation for UIM amounts (44-6412).

Cancellation and nonrenewal (44-514 to 44-520)

Scope. Private passenger cars and station wagons not used for livery or rental, and pickups not used in business. Assigned risk and garage policies are excluded. A policy in force under 60 days (not a renewal) is exempt.

Allowed reasons for cancellation (44-515)

• nonpayment
• fraud or material misrepresentation, or violation of policy terms
• suspension or revocation of the license of the named insured or a regular operator

Notice (44-516, 44-517)

• Cancellation: at least 30 days, or 10 days with the reason for nonpayment. It goes by registered, certified or tracked first-class mail.
• Reason on request: the insurer sends it within 5 days of the request.
• Nonrenewal: at least 20 days before the end of the term, unless the insurer offered to renew or the premium wasn't paid.
• Assigned risk notice: every cancellation or nonrenewal notice must tell the insured about possible eligibility through an affiliated insurer or the automobile liability assigned risk plan (44-520).
• Proof: evidence of mailing to the last known address is proof of receipt (44-519).

Rating disclosure. Insurers disclose the location used to set the rate and whether credit-based rating was used (44-7516.01).

Auto claims rules (210 NAC 45 and 60; 44-1540)

Repairs

• An insurer can't require a particular repair shop. It isn't liable for more than the lowest estimate for like kind and quality repair.
• If the claimant's shop estimate is higher, the insurer may pay the difference, name a quality shop that will do the work for its estimate, or negotiate with the claimant's shop.
• Aftermarket parts must be at least equal to the originals in fit, quality and performance. Their use must be disclosed in writing on the estimate in at least 10-point type.
• The claimant gets a copy of the estimate. Betterment and depreciation deductions must be itemized in dollars.
• The insurer pays all reasonable towing, gives notice before ending storage payments, and can't make the claimant travel an unreasonable distance.

Subrogation and third parties

• The insured's deductible is included in subrogation demands.
• Third-party claimants can't be steered to their own insurer just to delay payment.

Salvage (60-171, 60-173)

• A late-model vehicle is salvage when repairs reach 75% of its retail value.
• The insurer takes title and applies for a salvage branded title. An owner who keeps the salvage sends in the title within 30 days.

Transportation network companies (75-333 to 75-341)

• Coverage may come from the driver, the TNC or both.
• Drivers carry proof of TNC coverage while using the app.
• A personal auto insurer may offer a TNC endorsement for a separately stated premium.

Common exam traps

• Minimums are 25/50/25. UM and UIM are both required at 25/50.
• Nebraska bars recovery when the claimant is 50% or more at fault.
• Cancellation notice is 30 days, or 10 days for nonpayment. Nonrenewal notice is 20 days.
• The SR-22 goes electronic-only on July 1, 2027.
• UM/UIM can't be stacked. A no-contact hit-and-run needs independent corroboration.