Guide to Nebraska’s Uninsured/Underinsured Motorist Coverage
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Legally Reviewed By: Robert M. Knowles
Attorney & Partner At Knowles Law Firm
When you are injured in a car accident caused by a driver who has no insurance or insufficient insurance to cover your damages, uninsured and underinsured motorist coverage — known as UM/UIM coverage — is often the primary source of recovery available to you. Nebraska law requires all auto insurance policies to include UM/UIM coverage, and understanding how this coverage works, when it applies, and how to maximize your claim can make a critical difference in your financial recovery after an accident.
Nebraska’s Legal Requirement for UM/UIM Coverage
Nebraska requires all motor vehicle liability insurance policies to include uninsured and underinsured motorist coverage under the Uninsured and Underinsured Motorist Insurance Coverage Act, Neb. Rev. Stat. § 44-6408. Insurers must offer UM/UIM coverage at the same limits as the liability coverage on the policy, and policyholders must specifically sign a written rejection to purchase lower limits.
Nebraska’s minimum required UM/UIM coverage limits are $25,000 per person and $50,000 per accident for bodily injury — the same as the minimum liability requirements. However, these minimums are often inadequate to cover serious injuries. Many drivers carry higher UM/UIM limits, and purchasing additional coverage is one of the most cost-effective ways to protect yourself given the significant percentage of Nebraska drivers who are either uninsured or underinsured.
According to the Insurance Research Council, approximately 6.8 percent of Nebraska drivers do not carry any insurance at all. Many more carry only the minimum liability limits that leave substantial gaps when accidents cause serious injuries. UM/UIM coverage bridges those gaps.
The Difference Between Uninsured and Underinsured Motorist Coverage
Uninsured motorist (UM) coverage applies when the at-fault driver has no liability insurance whatsoever, or in hit-and-run situations where the at-fault driver cannot be identified. Your UM coverage pays compensation for your bodily injuries up to the limits of your own policy, effectively standing in for the liability insurance the at-fault driver should have carried.
Underinsured motorist (UIM) coverage applies when the at-fault driver has liability insurance, but the limits are insufficient to fully compensate you for your injuries and losses. Your UIM coverage pays the difference between what the at-fault driver’s policy covers and your total damages, up to your own UIM limits. For example, if you sustain $100,000 in damages and the at-fault driver has $25,000 in liability coverage, your UIM coverage can provide an additional $75,000 — assuming your UIM limits are sufficient.
When UM/UIM Coverage Applies in Nebraska
UM/UIM coverage applies after you have exhausted all available recovery from the at-fault driver’s insurance. For uninsured motorist claims, this means establishing that the other driver had no applicable insurance. For underinsured motorist claims, you typically must first settle with the at-fault driver’s insurer for the full policy limits before triggering your UIM coverage.
Nebraska law requires that you notify your own insurer promptly when you have a potential UM/UIM claim. Failure to provide timely notice can affect your right to coverage. Your own insurer also has the right to attempt to recover the amounts it pays you through subrogation against the at-fault driver — though in the case of an uninsured driver, this right may be of limited practical value.
UM/UIM Stacking in Nebraska
Nebraska law permits “stacking” of UM/UIM coverage in some circumstances, meaning policyholders may be able to add together the UM/UIM limits from multiple vehicles on the same policy or from multiple policies to create a larger pool of coverage. Whether stacking is permitted depends on the specific policy language and the circumstances of the accident. Nebraska courts have addressed stacking in numerous decisions, and the rules can be complex. An attorney who understands Nebraska insurance law can evaluate whether stacking applies to your situation and maximize your available coverage.
How Nebraska’s Modified Comparative Negligence Affects UM/UIM Claims
Nebraska’s modified comparative negligence standard applies to UM/UIM claims just as it does to standard liability claims. If you were partially at fault for the accident, your recovery under UM/UIM coverage will be reduced proportionally. A claimant found to be 50 percent or more at fault cannot recover from UM/UIM coverage. Insurance companies investigating UM/UIM claims often look for evidence that the insured shared fault for the accident in order to reduce what they pay.
Gathering strong evidence of the at-fault driver’s negligence — police reports, witness statements, traffic camera footage, and accident reconstruction if necessary — is as important in a UM/UIM claim as in any other personal injury case. Your own insurer’s interests in minimizing what it pays are not always aligned with yours.
Nebraska’s Statute of Limitations for UM/UIM Claims
Nebraska law gives accident victims four years from the date of the accident to bring a personal injury claim under Neb. Rev. Stat. § 25-207. However, your insurance policy may include shorter contractual deadlines for filing a UM/UIM claim — some policies require notice of a potential UM/UIM claim within a specific period. Review your policy carefully and consult an attorney promptly after any accident involving an uninsured or underinsured driver.
Frequently Asked Questions About UM/UIM Coverage in Nebraska
Is uninsured motorist coverage required in Nebraska?
Yes. Nebraska law requires all auto liability insurance policies to include uninsured and underinsured motorist coverage under Neb. Rev. Stat. § 44-6408. Minimum required limits are $25,000 per person and $50,000 per accident. Policyholders can purchase higher limits and, in some circumstances, can reject lower limits only through a signed written waiver. Many drivers underestimate how important this coverage is given the significant percentage of Nebraska motorists who are uninsured or carry minimum limits.
What happens if the at-fault driver doesn’t have enough insurance to cover my injuries?
If the at-fault driver’s liability limits are insufficient to fully cover your damages, your own underinsured motorist (UIM) coverage can provide additional compensation up to your policy limits. In Nebraska, you typically must first exhaust the at-fault driver’s policy by settling for the full available limits before triggering your UIM coverage. An attorney can coordinate this process and ensure that your own UIM claim is handled correctly after the at-fault policy is resolved.
Can I stack UM/UIM coverage in Nebraska?
Nebraska law permits stacking of UM/UIM coverage in some circumstances, allowing policyholders to combine limits from multiple vehicles or policies to increase available coverage. Whether stacking is permitted depends on specific policy language and the facts of the accident. Nebraska courts have addressed stacking in numerous cases. An attorney with experience in Nebraska insurance law can evaluate whether stacking applies to your situation and whether additional coverage is available beyond the single-vehicle limits.
Does my own insurance company represent my interests in a UM/UIM claim?
Not fully. When you file a UM/UIM claim with your own insurer, the insurer’s goal is to pay as little as possible — the same as any insurer. Your own insurer will investigate fault, dispute the extent of your injuries if it can, and may argue comparative negligence to reduce what it pays. An attorney representing you in a UM/UIM claim advocates for your interests against your own insurer, which is often adversarial in these situations despite the existing policy relationship.
How long do I have to file a UM/UIM claim in Nebraska?
Nebraska’s general personal injury statute of limitations is four years from the date of the accident under Neb. Rev. Stat. § 25-207. However, your insurance policy may contain shorter contractual deadlines for notifying your insurer of a potential UM/UIM claim — some policies require written notice within a specific number of days or months. Review your policy promptly after any accident involving an uninsured or underinsured driver and consult an attorney to ensure all deadlines are met.
Injured by an Uninsured or Underinsured Driver in Nebraska? Contact Knowles Law Firm.
UM/UIM claims require navigating your own insurance company’s claim process while protecting your right to full compensation. The attorneys at Knowles Law Firm have 55 years of experience handling complex Nebraska auto accident claims, including those involving uninsured and underinsured motorists. The firm has secured multi-million dollar recoveries for Nebraska accident victims and understands how to maximize available coverage — including evaluating stacking and other coverage issues. Contact Knowles Law Firm through the contact form for a free consultation.
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