With average annual premiums of $1,470, Nebraska is ranked 30th in the country for auto insurance premiums. This is consistent with the national average cost of insurance, and provides a moderate rate to insureds in the state. Of course, specific policies may vary in price from the average depending on a driver’s history, the type of car being insured and other factors.

How much will my car insurance cost in Nebraska?

Car insurance premiums vary from one state to the next as well as from one person to another. On a personal level, auto insurance costs are based on a driver’s history of accidents and citations as well as his age, gender, marital status, credit score and other factors. Between states, policies fluctuate in cost due to an area’s traffic, population of uninsured motorists, number of DUI convictions, weather patterns and crime rates.

One of the largest contributors to auto insurance costs is the number of drivers without insurance in a state. Uninsured motorists cause insurance companies to lose money when they cause an accident that they are unable to pay for. This leads the not-at-fault driver’s insurance to absorb the cost of repairs without being reimbursed. In order to regain the lost money, the insurance company must increase rates across the state.

Nebraska has a low population of uninsured motorists. Only 8 percent of Nebraska drivers operate without auto insurance. While not the lowest in the country, this is certainly lower than the nationwide average. Lower premiums entice more drivers to purchase auto insurance, thus making it a perpetuating cycle.

Crime rates also play a role in determining the cost of insurance. Cities with a high rate of crime against property will lead to more claims for vandalism and partial theft. Auto theft in general is highest in areas near country borders, such as California, Texas, Arizona or Washington. Nebraska has a fairly low incidence of theft, so this is not a major concern affecting premiums in the area.

Nebraska also has a low rate of drunk drivers. In 2008, drunk driving accidents caused for 75 traffic fatalities. This accounts for 36 percent of accident-related fatalities in the state that year. Some rural states have an higher-than-average rate of drunk driving, but Nebraska seems to have avoided this concern.

The specific insurance requirements of any given state will also play a large role in determining the cost of insurance in that area. Some states have higher required policy limits than others, leading to a more expensive average policy cost than neighboring states. When identical policies are compared, however, the actual price difference narrows tremendously.

Nebraska Car Insurance Requirements

All drivers in Nebraska must carry a minimum of $25,000 in property damage liability insurance coverage and $25,000 in bodily injury coverage per person, up to $50,000 per accident. These are higher limits than many other states require, so if you’re moving to Nebraska from a neighboring area, make sure that you buy enough liability insurance. Even though these limits are fairly high, it’s a good idea to purchase more liability coverage if you can afford it. Otherwise you may need to pay for an accident out of pocket if you cause more damage than your insurance can pay for.

Drivers in Nebraska must also purchase uninsured motorist coverage. This protects a driver from an accident caused by another driver who does not have insurance. Uninsured motorist replaces the liability coverage of the at-fault driver, and it usually has the same limit as a person’s own liability insurance. It may have a deductible, but the deductible is usually cheaper than that of collision coverage.

If the vehicle is financed or leased, the driver must purchase collision and comprehensive coverage. For vehicles that are owned outright, full coverage auto insurance is optional. First-party coverage like collision or comprehensive pay for an insured vehicle to be repaired after an accident, even if the driver is at fault. The coverage will have a deductible, which is the amount of money an insured must pay toward his own repairs. The higher the deductible, the cheaper the policy will be.

Other coverage in Nebraska is optional. Drivers can purchase medical payments coverage, rental reimbursement, towing and roadside assistance. These can be purchased independently of each other and can be added to a policy whether or not it has full coverage. This way, a driver can customize a policy to suit his needs and budget.

Whether you’re a current resident of Nebraska or moving there from another state, you can get the best price on auto insurance by comparison shopping online for a quote. Getting a free online quote is fast and easy, and it gives you instant access to dozens of companies that can provide coverage to your vehicle.

Once you’ve chosen a company, you can discuss your specific policy needs with the customer service representative. He or she will be happy to work with you to determine what coverage you need and help customize a policy to suit your budget without sacrificing coverage. Be sure to ask if there are any discounts you might qualify for that can help to make the policy even more affordable.