How Much Insurance Do I Need?

If you own or drive a car, you must purchase liability insurance. The minimum liability insurance required by Nebraska law is $25,000 for each person, $50,000 for each accident, and $25,000 property damage. Failure to carry basic liability insurance can result in the loss of your license and being charged with a Class II Misdemeanor if you are found to be responsible for an accident and cannot pay for the property damage and physical injury suffered by the injured parties.

The maximum penalty for conviction of the Class II Misdemeanor of Failure to Prove Financial Responsibility is a $1,000 fine and six months in jail. In addition, you will not be allowed to register your car nor obtain license plates unless you present proof of insurance at the County Clerk´s office.

An example best illustrates the importance of carrying automobile liability insurance. Suppose you are driving your car and after stopping at a stop sign you proceed through the intersection. You fail to notice an approaching car. You collide with the car, causing property damage and personal injury to the driver and his passenger. The police arrive on the scene and issue a citation to you for failure to yield. The officer asks you to produce the little card issued by insurance companies proving you have current liability insurance. You have no little card because you have no insurance. The officer issues another citation for failure to prove financial responsibility.

In the next few weeks you receive a letter from the Department of Motor Vehicles telling you that your license may be suspended and require you to pay a security deposit in an amount determined by the DMV. In addition, you are sued by the other driver and passenger. Not only are you now in the position of being fined and possibly sent to jail, but also the civil liability could be so costly that you are forced to consider bankruptcy.

Avoiding this type of nightmare is well worth the money spent for a basic liability insurance policy.