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Many things can affect your car insurance premium from your age to your driving history. One thing that you can control when it comes to purchasing car insurance is the company you choose. Car insurance can vary by hundreds, sometimes thousands, of dollars for the same coverage through different automobile insurance companies. Learn more about the types of insurance available, any minimum requirements for car insurance, and where to find cheap car insurance in Omaha, Nebraska, to get the best deal.
What Are the Types of Automobile Insurance Coverage?
Knowing the various types of automobile insurance coverage and any minimum requirements will help you be a better insurance consumer. It will help you decide on the amount of coverage, limits, and types of coverage you want to protect you and your vehicle best. There are four main types of car insurance available through most insurance companies: liability, uninsured/underinsured motorist, comprehensive, and collision.
Liability Coverage
Liability coverage is required by most, if not all, states across our nation to help protect against personal liability in the event of a car accident. Liability insurance consists of bodily injury liability and property damage liability. Bodily injury liability covers any medical bills of the other driver or those involved in the accident you caused. Property damage liability will pay for damage you caused to the other vehicle, public, and personal property. If your state requires liability, it will outline a bare minimum required to drive legally on the road.
Uninsured/Underinsured Motorist Coverage
Uninsured/underinsured motorist coverage is typically optional insurance coverage that you can add to your policy to protect against drivers who don’t carry adequate insurance. Uninsured coverage steps in if the other at-fault driver has zero insurance coverage, whereas underinsured coverage pays the difference between the other driver’s policy and your actual medical expenses. For example, if you have $29,000 in medical bills and the other driver’s insurance limit is $25,000 per person, your insurance would cover the additional $4,000 as long as it falls within your limits.
Comprehensive Coverage
Comprehensive insurance coverage is applied to damages to your vehicle caused by forces beyond your control, including theft, vandalism, or acts of nature such as hail. Comprehensive is usually optional coverage unless you owe money to a third party via loan or lease. The third party can require you to carry comprehensive coverage to protect their investment. Comprehensive will also have a deductible that you can choose as your agreement to out-of-pocket expenses should you need to file a claim with comprehensive coverage.
Your deductible affects your annual insurance premium. If you go with a lower deductible, your overall insurance costs will increase. However, it’s important to note that you need to be able to cover whatever deductible you select as your out-of-pocket expenses. While a lower annual premium may sound good, having your deductible low enough to afford it may be reasonable.
Collision Coverage
Collision coverage is designed to protect your vehicle from damages from an accident caused by you, whether you hit another vehicle or an object such as a fence. Collision also comes with a deductible you choose and is usually optional unless required by a third party.
Additional Coverage Options
Personal injury protection and medical payments are two additional coverages that can help protect you and your vehicle in the event of an accident. These coverages are required in a few states, optional in others, and unavailable in some. Talk to your insurance agent about these coverages to decide if either is right for you.
What Are the Minimum Automobile Insurance Requirements for Omaha, Nebraska?
Along with all of the other states, Nebraska sets a bare minimum insurance requirement for liability coverage. It’s essential to know the minimum insurance requirement and what it covers before heading out on the road. Nebraska’s minimum automobile insurance requirements are as follows:
- Bodily injury liability of $25,000 per person and $50,000 per accident
- Property damage liability of $25,000 per accident
These are the minimum requirements for liability, and you’re allowed to carry higher limits if you wish to protect yourself further from any possible car accidents and the damages involved.
What Are the Penalties for Driving Without Adequate Insurance in Omaha, Nebraska?
If you’re pulled over for any traffic violation in Nebraska, you can be asked to provide proof of car insurance. Failure to have the minimum insurance coverage can result in penalties such as:
- First offense. Suspension of driver’s license, registration, and license plates until fees are paid in full.
- Driver’s license reinstatement fee: $50
- Registration reinstatement fee: $50
In addition to the fees, drivers convicted of driving without adequate insurance will be required to carry SR-22 insurance for three years. SR-22 provides proof of financial responsibility and the ability to maintain minimum insurance requirements and significantly increases your annual insurance premium.
Where Can You Find Cheap Car Insurance in Omaha, Nebraska?
Your car insurance premium is based on a number of factors, including driver’s age, driving history, accident history, credit score, zip code, and vehicle type. While you may have very little control over any of these factors, you can control the company you choose to carry your automobile insurance.
According to U.S. News & World Report, the average Nebraska driver pays $1,222 in annual insurance premiums for minimum coverage. Other companies that provide cheap car insurance in Omaha, NE, include:
- USAA: $888
- Nationwide: $1,011
- Farmers Mutual: $1,096
- GEICO: $1,197
- State Farm: $1,228
- Progressive: $1,319
- Allstate: $1,371
- Iowa Farm Bureau: $1,400
- Farmers Insurance $1,487
As you can see, the difference in companies can mean a savings of approximately $600 per year, or $50 per month.
When shopping for cheap car insurance in Omaha, NE, you may also want to consider running quotes for full coverage. You may be surprised to learn that full coverage costs most drivers just a little more each year. Companies with full coverage cheap car insurance in Omaha, NE, include:
- Nationwide: $925
- USAA: $972
- Farmers Mutual $1.132
- GEICO: $1,263
- State Farm: $1,333
- Progressive: $1,438
- Allstate: $1,452
- Iowa Farm Bureau: $1,478
- Farmers Insurance: $1,626
For less than $40 more per year, you can carry full coverage on your vehicle, eliminating the stress and worry associated with a car accident.
When purchasing cheap car insurance in Omaha, NE, get quotes from several insurance companies. The same coverage on the same vehicle can range by hundreds of dollars, and you want to get the best value for your money.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
