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Nebraska Car Insurance — The Best and the Cheapest (2020)

Nebraskans on average pay $20 less per month than the national average on car insurance. However, just because Nebraska car insurance rates are lower than a number of other US states, doesn’t mean you can’t lower your costs even further. 

Several carriers offer coverage at lower prices than the state’s average — and we’ll tell you all about them in this post. 

But that’s not the half of it. 

We’ve also ranked insurers on different factors, such as quality of service, financial standing ratings, and selection of coverage options. Additionally, we’ve explained car insurance laws in plain language, minus any technical mumbo-jumbo, and even offered time-tested tips that can pull your rates down by as much as 60%.

The Best Car Insurance in Nebraska

  • Progressive — The Overall Winner
  • GEICO — The Best for Financial Stability
  • USAA — The Best for Military
  • Allstate — The Best for Coverage Options/Discounts
  • American Family — The Cheapest Option

The Overall Winner: Progressive

Progressive Car Insurance Logo

Progressive’s website claims you can save $796 on auto insurance when you switch over. How did it come to this figure is a mystery to us, yet one thing is for sure: Progressive delivers a better bargain than most insurance companies in Nebraska

We grabbed four quotes from the insurer, and the monthly average rate came out to be $84, which is dirt-cheap, to say the least. Of course, your rate will be different since auto insurers evaluate each driver differently. All the same, we’re sure you’ll get a figure that promises a lot of value. 

However, mind you, there’s a slight tradeoff in customer service. Progressive’s record is not as good as some other top Nebraska auto insurance companies, such as State Farm and GEICO. It could only manage three stars and a 14th overall rank (out of 23 insurers) in 2019’s J.D. Power customer service study for Nebraska (North Central Region).

The good part is that this was the only chink in the armor we could sniff out. Progressive’s record in the financial department is almost impeccable, with an “A+” (Superior) rating from A.M. Best. 

Also, it is a step ahead of most Nebraska car insurance companies when it comes to offering innovative features. For instance, its Name Your Price tool takes online auto insurance shopping to a whole new level. Simply enter the rate you have in mind, and the tool will show you all coverage options available to you. Cool, eh? 

To sum it up, Progressive has much going for it in The Cornhusker State and fully deserves the title of “Top Nebraska auto insurance company.”

The rating of Progressive car insurance in Nebraska

Choose Progressive for its low premium rates. 

Look elsewhere if nothing short of the best customer service will do for you.

Best for Financial Strength: GEICO

Geico Auto Insurance LogoGEICO is yet another player that offers good value for money, although its rates are not as exciting as Progressive’s. That said, what GEICO lacks in affordability vis-a-vis Progressive it adequately makes up for in customer service. The insurer earned the 9th spot in the J.D. Power regional study — a performance that’s a few notches better than Progressive (ranked 14th) and most other top Nebraska auto insurance providers on our list. 

So, basically you’re paying more for better service, and that’s not a bad deal any way you slice it. 

GEICO also delivers a superior mobile app experience, as confirmed by the high rating enjoyed by its app (4.8 out of 5) in both Google Play and the App Store. 

Furthermore, GEICO is in the pink of health financially. It got the highest rating by A.M. Best — “A++.” This basically means the insurer will not let you down when you make a claim, whether that’s next week or a few years down the line. 

For these reasons, GEICO is an appealing option for car insurance in Nebraska. However, since it doesn’t have GAP insurance, you may want to give it a miss if you need that coverage.

The rating of GEICO car insurance in Nebraska

Choose GEICO for its reasonably-priced premium rates and excellent financial health.

Look elsewhere if you want GAP insurance.

Best for Military: USAA

USAA Auto Insurance LogoUSAA is the blue-eyed boy of customer satisfaction surveys, consistently notching up top scores at both the national and regional levels. However, for Nebraska drivers, the only question that matters is: how does the insurer perform in their backyard? 

Exceedingly well, in fact. USAA is the only Nebraska car insurance provider in our list to get a perfect score in overall satisfaction in J.D. Power regional study. 

What’s more, its rates are pretty competitive as well. So it’s not that you’d be paying a premium price for premium service. Also, the insurer is rock-solid financially; A.M. Best awarded it the highest rating of “A++.” 

In short, USAA has all the bases covered. However, you need to be associated with the US Military to buy its products. You are? Then you might just be in for a grand treat since USAA is a top-ranking Nebraska car insurance company.

The rating of USAA auto insurance in Nebraska

Choose USAA for its affordable rates, top-shelf service, and solid financial standing. 

Look elsewhere if you don’t qualify.

The Best for Its Variety of Coverage Options/Discounts: Allstate

Allstate Car Insurance LogoAllstate is the fourth largest US auto insurer. But the main question is, how does it stack up against other top auto insurers in The Cornhusker State? 

Pretty well, actually. 

Allstate, which provides quotes online as well as through Nebraska auto insurance agents, makes a mark with its wide array of coverage options, including classic car insurance and car stereo insurance. Its huge selection of add-ons should easily cover the insurance needs of most Nebraska drivers. 

Allstate’s selection of discounts is just as exhaustive as its coverage options. For instance, unlike other names on our list, it provides three different kinds of safe driving bonuses: Allstate Rewards program, Safe Driving Bonus Check, and vanishing deductible. 

However, Allstate’s dependable coverage doesn’t come cheap, even after you factor in the discounts. So, if your main priority is finding cheap auto insurance in Omaha or elsewhere in The Cornhusker State, you may be better off considering names like Progressive or American Family

As far as customer service is concerned, the insurer is ranked at just about the middle of the pack. Financially, Allstate is in strong shape, something which its “A+” rating from A.M. Best confirms all too well. 

Another impressive thing about the insurer is its claim satisfaction guarantee. Allstate promises you a reimbursement of up to six months of your premium if you are unhappy with the approach the insurer took while handling your claim. There are not many Omaha auto insurance companies that make such a promise (if any at all). 

Overall, Allstate is an appealing option for those who want unique coverage options or claim satisfaction guarantee or can take full advantage of its three safe driving discounts.

The rating of Allstate car insurance in Nebraska

Choose Allstate for its unrivaled choice of coverage options/discounts. 

Look elsewhere if you want dirt-cheap premiums or top-notch customer service.

The Cheapest Option: American Family

American Family Car Insurance LogoAmerican Family beats the competition to the punch when it comes to affordability, with an average monthly premium of just $56. What’s more, there’s more to the insurer than car insurance in Nebraska. Life insurance, home insurance, health, farm and ranch insurance, and retirement products — American Family offers it all. 

The insurer also boasts strong financial ratings, receiving the second-highest rating of “A+” from A.M. Best. However, its customer satisfaction ratings are not so splendid; though, they are not bad either. American Family earned the average score of three stars out of five in J.D. Power regional study. 

If that bothers you, consider State Farm or The Hartford. However, if your main priority is low-cost coverage, American Family deserves more than cursory attention.

The rating of American Family Car Insurance in Nebraska

Choose American Family for its jaw-dropping premium rates. 

Look elsewhere if you want the best experience.

Cheapest Car Insurance in Nebraska (By City)

Car insurance costs vary from city to city when Nebraska is concerned. By how much? And which are the best options in these cities? To find answers to these questions, we compiled quotes from top players in four major cities — Omaha, Lincoln, Kearney, and Hastings. Our quote was for a male driver (40 years of age) with a pristine record and included full coverage limits.

Omaha 

Omaha is the largest city in The Cornhusker State with a population of over 460,000. A growing and bustling city, Omaha is the home of the American business magnate Warren Buffet and Berkshire Hathaway. It is also the headquarters of Mutual of Omaha, Union Pacific Railway, and ConAgra.  

Car insurance in Omaha is a tad more expensive than most cities in Nebraska. Nevertheless, several players offer coverage at reasonable rates. Let’s see who they are. 

Comparison of auto insurance quotes in Omaha for a 21-year-old driver

Best for 21-year-olds

Young drivers are four times more likely to crash than adults. So, it doesn’t come as a surprise that young drivers have to cough up more for coverage. All the same, a bit of shopping around can help you get the best rate. Our research shows Progressive offers the lowest rates to such drivers. Other names worth mentioning include Auto Club Group, Farmers, GEICO, and Nationwide.

Comparison of auto insurance quotes in Omaha for a 40-year-old driver

Best for 40-year-olds

Compared to young drivers in Omaha, adults have it good. They pay 26% less for coverage on average. The most pocket-friendly insurance companies in Omaha, NE for this age-group are Progressive, Farmers, AAA, GEICO, and Nationwide. However, if customer service is your number one priority, you may want to look at State Farm first.

Comparison of auto insurance quotes in Omaha for a 70-year-old driver

Best for 70-year-olds

Senior drivers in Omaha pay a slightly higher rate than 40-year-olds but a much lower rate than young drivers. The average monthly premium rate for this age group is $210. Progressive offers the best bargain for this age group, followed by GEICO. Omaha drivers who can stretch their budget may consider State Farm since its customer service record is better than GEICO’s.

Lincoln

Founded way back in 1856, Lincoln is the capital and the second-most populous city in Nebraska with a population of over 280,000. The city is best-known for the University of Nebraska and the Goodhue-designed state capitol building, the second tallest building in the country. 

Car insurance in Lincoln, NE is considerably pricier than in Omaha, with insurers listed ahead offering the best deal.

Comparison of auto insurance quotes in Lincoln for drivers aged 21, 40, and 70Best for 21-year-olds

Just like in Omaha, young drivers get the short end of the stick. They have to fork out 40% more for car insurance than adults. American Family offers the best bargain, followed by Progressive. Other budget options entail GEICO and Allstate. Those who want premier customer service should check out State Farm.  

Best for 40-year-olds

Progressive tops the list of cheap Lincoln car insurance providers, with State Farm coming second. However, the former is in the bottom half of J.D. Power’s regional customer service study. Hence, if poor customer service is a deal-breaker for you, Allstate or GEICO might be a better option. On the other hand, Allstate, thanks to its wide selection of coverage options, might appeal to certain drivers. 

Best for 70-year-olds

Senior citizens looking for low-cost auto insurance in Lincoln, Nebraska, will find Progressive and American Family to their liking. GEICO, while slightly more expensive than these two, is also a good option since it does better in customer service. Other names to consider are State Farm and Allstate.

Kearney

Located in Buffalo County, Nebraska, Kearney features a small population of nearly 33,800. The city is growing rapidly with a similar cost of living as Lincoln. The Buckle, a popular clothing retailer, is headquartered here, as are several other major manufacturers such as Eaton Corp. and Baldwin Filters.

Comparison of auto insurance quotes in Kearney

American Family and Progressive emerge as the most cost-effective options in Kearney. Although State Farm rates in Kearney, NE are a tad on the higher side, it deserves a spot on your shortlist; on the count of its excellent customer service record.

Hastings

Located in Adams County, Hastings is home to nearly 25,000 people. The city is known for Fisher Fountain and as the place where Kool-Aid was invented. During WWII, Hastings operated the biggest Naval Ammunition Depot in the country.

Comparison of auto insurance quotes in HastingsProgressive offers the best value for money in Hastings, followed by Farmers. You may also want to consider State Farm in Hastings, NE for auto insurance. Its rates are the third cheapest in the city while its customer service is better than most. GEICO is worth a shot as well since it also boasts an impressive record in customer service. On the other hand, Esurance, thanks to its state-of-the-art mobile app, may be a good option for those who want insurance that’s easy to manage on the go.

Nebraska Auto Insurance Laws

Nebraska Automobile Insurance Plan (NEAIP)

Getting turned down for coverage may seem like the end of the road for you. But that’s hardly the case. Help is within arm’s reach and comes in the form of Nebraska Automobile Insurance Plan (NEAIP).

The idea behind NEAIP is twofold:

  • To have as many insured drivers behind the wheel as possible.
  • To proportionally spread the cost of covering the state’s hazard drivers across various insurance companies in Nebraska.

While the process of getting help from NEAIP is fairly simple, the coverage obtained through the plan is likely to be pricier than standard insurance. For this very reason, it’s best you knock on its door only as a last resort. 

To get car insurance through NEAIP, you’ll need to fill out a form and state that you were unable to purchase coverage from the voluntary market in the last 60 days. Also, you must have a valid Nebraska driver’s license and a vehicle registered in the state.

Nebraska Auto Insurance Requirements

The following bare minimum coverage is a must to legally drive in The Cornhusker State:

  • Bodily Injury Liability — $50,000 per accident/$25,000 per person. It pays for the medical expenses of the other driver and their passengers when you’re at fault. 
  • Property Damage Liability — $25,000 per accident. If you damage someone else’s car or property, this coverage pays for their repair. 
  • Uninsured/underinsured motorist coverage — $50,000 per accident/$25,000 per person. Your Nebraska auto insurance provider will pay for injuries suffered by you or your passengers in a crash caused by a motorist who doesn’t have adequate insurance.

No-Fault Car Insurance Laws in Nebraska

Nebraska is an at-fault state, unlike its neighbor Iowa. This means every driver must owe up to their mistakes. In all actuality though, it’s their carriers that pay for their mistakes, up to the policy limits. 

If you’re at fault and the other driver’s losses exceed your policy limits, they can legally recover compensation from you. To avoid paying out of your pocket, consider increasing your policy limits beyond the minimum payout amount. 

According to Nebraska state insurance laws, an individual may collect compensation only if they are less at fault than all the other parties involved. Also, they’ll not get any compensation for the proportion of fault attributed to them. This type of system is called a modified comparative fault. 

For instance, if your total damages were $400,000 in an accident in which you were 20% at fault, you can recover compensation for up to $320,000.

SR22 Insurance in Nebraska

If your driving license has been suspended or revoked because of the accumulation of too many points, a court conviction, or any other reason, you must prove to the State of Nebraska that all vehicles owned by you are insured. In case you don’t own any vehicle, you’ll need a non-owner policy, according to the Nebraska Department of Motor Vehicles

The proof of insurance that you must submit is called an SR22 form. You or your Nebraska insurance company can file SR22 with the local DMV. Depending on the issue, you’ll have to maintain the SR22 certificate for three to five years. 

While SR22 filing is hardly expensive — the fee could be as low as $15–25 — getting affordable coverage along with it might not be as easy. That’s because an SR22 requirement puts you in the category of hazard drivers. As a result, carriers are likely to quote you a much higher rate than you previously paid. That said, some insurers specialize in offering coverage to such drivers, so don’t forget to shop around.

Auto Insurance in Nebraska for New Residents

New residents must register their motor vehicle within 30 days of moving to The Cornhusker State.

Price Optimization in Nebraska

When your carrier bumps up your car insurance premium because of an at-fault accident, that’s understandable. However, it’s when your rate gets raised after a good year that you feel like shouting: “what the heck is going on?”

What’s happening here is something that happens to thousands of drivers (if not more) every year, courtesy of a practice called — price optimization. 

Price optimization can lead to a hike in your Nebraska auto insurance cost, even when your chances of filing a claim against your policy has not increased a bit. Car insurance companies collect your personal data to find out how likely you’re to leave them. And if they think you won’t desert them, they may hike your premium every year, regardless of whether you had an accident or not. 

Think that’s unfair? 

Well, since Nebraska laws allow price optimization, the only course of action left for you is to take the matter into your own hands. Grab quotes from different providers before your policy is up for renewal to send the message across that you’re not someone who can be taken for a ride.

How to Get Cheap Auto Insurance in Nebraska

Check Car Insurance Reviews

You’ve found a car insurer with a seriously low average premium rate, but did you check its customer service and financial service ratings? 

You know, they’re important too. After all, when you make a claim, you won’t want a carrier that worsens your headache instead of lessening it. 

So how can you learn these details about different insurers? Start with this post as it shows you how major Nebraska players perform on a number of parameters. However, if you want to look at more names, check out our car insurance rankings. It includes no fewer than two dozen auto insurers, both national and regional.

Compare Nebraska auto insurance quotes

No carrier is the low-price leader for every driver. The insurer that offers a great bargain to your friend may quote you an exorbitantly high rate. If you don’t overpay for auto insurance, don’t forget to sniff around as well.

See who provides the highest discounts

Carriers offer a number of discounts. The more of these you qualify for, the better. Here are some of the common discounts provided by auto insurers in The Cornhusker State.

  • Bundle Discount Buying Nebraska life insurance along with car insurance can help you save handsomely on both. 
  • Safe Driving Discount You can net a discount for something you might already be doing — driving safely. 
  • Multi-Line Discount Insure two or more vehicles with a single carrier and watch your savings grow. 
  • Good Student Discount If you have a high GAP score, you can get a nice rebate on your car insurance.

Frequently Asked Questions

1. Is Nebraska a no-fault state?

No, it is not. Nebraska is an at-fault state, meaning in the event of a car accident, the insurer of the at-fault driver must reimburse the other party for the damages, up to the policy limits. 

2. Who has the cheapest automobile insurance in Nebraska?

At $84 a month, Progressive is the most pocket-friendly auto insurer in The Cornhusker State. Our quote included full coverage limits for a 40-year-old driver with a good driving record. Of course, your rate is likely to be different than what we got, these are subject to your age, record, as well as a few other things. As often as not, Nebraska insurance companies charge a higher rate for young and inexperienced drivers, compared to experienced ones. 

3. When did automobile insurance in Nebraska become mandatory?

Car insurance became mandatory in the US in 1927, with Connecticut being the first state to offer liability insurance to drivers.

4. In Nebraska, how much will auto insurance increase after an accident?

You will pay more for car insurance following an at-fault crash. The average yearly rate after an at-fault accident is $1,805 in Nebraska. That’s a yearly rate increase of $671. 

5. What are the minimum auto insurance requirements in Nebraska?

You must carry the mandatory Nebraska car insurance coverage to be able to drive legally in the state. This coverage includes liability insurance, property damage insurance, and uninsured/underinsured motorist insurance.

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