The state minimum of auto insurance is not right for everyone, especially people with newer vehicles or buyers who’ve financed the purchase with an auto loan. To protect yourself—and your lender—financially, you may want to other types of car insurance. Below, you'll find a list of some of the most important types to consider.
What Types of Auto Insurance Coverage Are Available?
Liability auto insurance pays the costs of repairs and medical treatments if someone is injured or their property is damaged in an auto accident. Nebraska state law requires drivers to maintain at least $25,000 worth of bodily injury liability coverage per person, to a maximum of $50,000 per accident, as well as $25,000 worth of property damage liability.
Unlike liability coverage, which pays only for damage to other motorists' vehicles, collision coverage pays to repair or replace your vehicle if it's damaged during a multi-car accident, slide-off, or another on-the-road event. It covers both mechanical repairs and body damage, and it pays out even if you are deemed at fault.
Comprehensive coverage pays for damage or losses that occur while the car is not moving. These include theft, vandalism, fire, flood, and other events. Even if your car is not being driven—like if it's in storage for the season while you are wintering down south—it is important to maintain comprehensive coverage on the vehicle to protect it against misfortune.
Bodily injury liability only pays the costs of medical care for the driver and passengers of other vehicles. Medical payments coverage, on the other hand, helps pay for medical or possibly funeral costs for you and your passengers, regardless of fault. Even if you did not cause the accident and can collect from the other driver's insurer, your medical payment coverage will provide further aid.
This helps pay for your injuries and damages if an uninsured driver causes an accident and you cannot collect from their auto insurance company. It is mandatory in some states, but it is optional coverage in Nebraska.
Similar to uninsured motorist, this coverage pays for amounts above and beyond the limits of the other driver's liability policy if their insurance is unable to cover all damages. Again, some states require this type of insurance, but Nebraska leaves it up to the policyholders.
To discuss your auto insurance needs with a friendly, experienced professional, contact the team at First State Insurance Agency at one of their three locations: David City, Beatrice, and Hickman, NE. They also specialize in coverage for homes, small businesses, and agricultural enterprises, and as an independent agency, they have the freedom to search through a large network of providers to find you the best coverage at the lowest rates. Visit their website to learn more about their personal and business insurance policies, or call (402) 979-7585 to request a quote.