Uninsured vs. Underinsured Motorist Coverage in Nebraska

By the FigureMyTax Editorial Team · How we calculate

Nebraska requires both uninsured and underinsured motorist coverage. UIM pays your damages less what the other driver paid, up to your limit, and you must follow the insurer's notice rules before you settle.

Required coverage

Neb. Rev. Stat. 44-6408 requires both coverages in limits of $25,000 per person and $50,000 per accident for any policy on a vehicle principally garaged in Nebraska. On written request the insurer must provide higher limits up to $100,000 and $300,000.

What counts as underinsured

An underinsured vehicle has bodily injury insurance or a bond that is less than, or has been reduced by payments to other injured people to less than, your damages (44-6406). Uninsured includes a vehicle with no insurance, one whose insurer denied coverage or became insolvent within four years, and an unknown vehicle with physical contact or, without contact, a reported accident corroborated by an independent person (44-6405).

How UIM pays

The insurer's maximum liability is your damages less the amount paid to you by or for anyone legally liable, never more than your coverage limits (44-6409). Medical payments coverage does not reduce the limits, but UM and UIM do not pay again what med-pay already paid.

Settlement notice

If a tentative settlement for liability limits is reached with an underinsured driver, you must give written notice by certified or registered mail with medical bills and wage records. Within 30 days the insurer may pay you that amount and take over the claim; if it does not, it has no right of subrogation (44-6412). A settlement without its written consent that harms its rights is excluded (44-6413).

Fault, deadlines and next steps

Your damages are reduced by your fault and you are barred if your negligence is equal to or greater than the total negligence of those you seek recovery from (25-21,185.09). Most tort actions have 4 years (25-207). Nebraska has no no-fault threshold for pain and suffering. See our statute post and the explainer, then use the Nebraska UM/UIM stacking calculator.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Nebraska's rules apply to your specific case with a licensed Nebraska attorney.