Nebraska Legal Advice for Complex Car Insurance Issues

Understanding Nebraska’s Auto Insurance Framework

Nebraska operates under a “fault” car insurance system, meaning the driver responsible for causing an accident is liable for resulting damages. This foundational principle dictates how claims are pursued and resolved. All drivers must carry minimum liability coverage: $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage. While these meet legal requirements, they are often insufficient for serious collisions, making an understanding of additional coverage types critical for financial protection.

Key Insurance Coverages in Nebraska:

Liability Insurance: Covers injuries and damages you cause to others.
Uninsured Motorist (UM) Coverage: Protects you if an at-fault driver has no insurance. Nebraska requires insurers to offer this coverage, but policyholders can reject it in writing. Rejecting UM coverage is highly inadvisable given the number of uninsured drivers.
Underinsured Motorist (UIM) Coverage: Activates when an at-fault driver’s liability limits are too low to cover your damages. This is also a required offer coverage that should be strongly considered.
Medical Payments (MedPay) Coverage: Pays for medical expenses for you and your passengers regardless of fault. This can be crucial for immediate costs.
Collision and Comprehensive Coverage: Cover damage to your own vehicle from accidents (collision) or non-collision events like theft or weather (comprehensive). These are typically required if you have a car loan or lease.

Navigating Disputes Over Fault and Liability

A primary source of complex insurance disputes is the determination of fault. Nebraska follows a “modified comparative negligence” rule. If you are found to be 50% or more at fault for an accident, you are barred from recovering any compensation from other parties. If you are less than 50% at fault, your recovery is reduced by your percentage of fault. For example, if you are 20% at fault and have $100,000 in damages, your recovery is limited to $80,000.

Insurance companies frequently dispute fault to minimize payouts. They may argue you were speeding, failed to yield, or were distracted. Overcoming this requires a meticulous investigation. Legal counsel can be essential to gather evidence such as police reports, eyewitness testimony, traffic camera footage, and accident reconstruction experts to establish a clear narrative that minimizes your assigned fault percentage.

The Challenge of Uninsured and Underinsured Motorist Claims

Encountering an uninsured (UM) or underinsured (UIM) driver is a common scenario where serious complications arise. If you are hit by such a driver, you must turn to your own insurance policy for compensation under your UM/UIM coverage. This creates an inherent conflict of interest; your insurer now has a financial incentive to minimize or deny your claim.

Common UM/UIM Disputes:

Policy Stacking: Nebraska allows for “stacking” of UM/UIM coverages. This means if you have multiple vehicles on your policy, you may be able to combine (stack) the coverage limits for each vehicle to create a higher total limit for a single accident. Insurers often include policy language that attempts to preclude stacking, but Nebraska courts have specific rules on the enforceability of such anti-stacking clauses.
Offsetting Claims: Your insurer may wrongfully attempt to “offset” what they owe you under UIM by the amount already paid by the at-fault driver’s insurer. Nebraska law has specific provisions governing how these setoffs are calculated, and an insurer may not apply them correctly without challenge.
Lowball Settlements: The insurer may offer a quick settlement that is far below the true value of your claim, hoping you will accept it out of financial desperation. They may also dispute the severity of your injuries to justify a lower offer.

Navigating a UM/UIM claim requires dealing with your own insurer in a bad faith context. An attorney can handle all communications, ensure a proper valuation of your claim, and fight against unfair settlement practices.

Dealing with Bad Faith Insurance Practices

Nebraska law implies a covenant of good faith and fair dealing in every insurance contract. This means your insurer has a legal obligation to handle your claim fairly, promptly, and without unjust denial. Bad faith occurs when an insurer violates this duty.

Examples of Bad Faith in Nebraska:

Unreasonable delay in investigating a claim or making a payment.
Denying a claim without a reasonable investigation or explanation.
Failing to defend a lawsuit against you when required under a liability policy.
Making a settlement offer that is significantly lower than what a reasonable evaluation would suggest.
Misrepresenting policy language or the law to avoid paying a claim.

If you can prove bad faith, you may recover not only the original benefits owed under the policy but also consequential damages, attorney’s fees, and potentially punitive damages designed to punish the insurer for especially egregious conduct. Proving bad faith is complex and requires demonstrating the insurer knew or recklessly disregarded the fact that it had no reasonable basis for denying the claim.

Disputes Over Vehicle Valuation and Total Loss

When your vehicle is damaged beyond economic repair, it is declared a “total loss.” The insurer must pay you the “actual cash value” (ACV) of the vehicle immediately before the accident. Disagreements over ACV are frequent. Insurers often use proprietary software and methodology that may undervalue your car by ignoring its pre-accident condition, local market values, or necessary sales tax and registration fees.

Nebraska law (Neb. Rev. Stat. § 44-1,137) outlines specific requirements for total loss settlements. The insurer must include sales tax and applicable fees in the settlement offer. If you disagree with the valuation, you have the right to question the methodology, provide evidence of your vehicle’s superior condition (like maintenance records), and obtain independent repair estimates or valuations. In complex cases, hiring an independent appraiser can be necessary to force a fair settlement.

The Role of Legal Counsel in Complex Claims

While not every fender-bender requires a lawyer, the complexities outlined above often do. An experienced Nebraska personal injury attorney specializing in auto insurance disputes provides critical advantages.

An attorney can:

Conduct an Independent Investigation: Secure evidence, consult accident reconstructionists, and obtain expert medical testimony to substantiate your claim.
Handle All Communications: Manage discussions with adjusters, preventing you from making statements that could be used to devalue your claim.
Accurately Value Your Claim: Calculate both economic damages (medical bills, lost wages, property damage) and non-economic damages (pain and suffering, emotional distress) to ensure you seek full compensation.
Navigate Policy Language: Interpret the complex terms, conditions, and exclusions in your policy and the opposing policy to identify all available sources of recovery.
Negotiate Aggressively: Use the leverage of potential litigation to negotiate a higher settlement from reluctant insurers.
File a Lawsuit: If a fair settlement cannot be reached, an attorney will litigate the case, presenting a compelling argument to a judge or jury.

Specific Nebraska Statutes and Case Law

Understanding the legal landscape is crucial. Several Nebraska statutes and court decisions directly impact car insurance disputes:

Modified Comparative Negligence (Neb. Rev. Stat. § 25-21,185.09): This statute codifies the 50% bar rule, making it essential to prove the other party’s majority fault.
Uninsured Motorist Coverage (Neb. Rev. Stat. § 44-6408): Mandates that insurers must offer UM coverage and defines its scope, including the requirements for a valid written rejection.
Stacking of UM/UIM Coverage: Nebraska case law (e.g., Bishop v. Allstate Ins. Co.) has consistently upheld the right of policyholders to stack coverages unless the policy language explicitly and clearly prohibits it in a manner consistent with state law.
Bad Faith Claims: Nebraska recognizes a common law cause of action for bad faith. The Nebraska Supreme Court, in cases like Radecki v. Mutual of Omaha Ins. Co., has established that insurers must exercise good faith in discharging their contractual obligations.

Steps to Take After an Accident to Protect Your Claim

Your actions immediately following an accident can significantly impact the complexity of your subsequent insurance claim.

Seek Medical Attention: Your health is the priority. Furthermore, a medical record creates a documented link between the accident and your injuries.
Document the Scene: Use your phone to take photographs of vehicle damage, license plates, injuries, road conditions, and traffic signs.
Gather Evidence: Collect names and contact information of witnesses. Their unbiased testimony can be invaluable in a fault dispute.
Obtain a Police Report: A law enforcement officer’s objective report can be powerful evidence for establishing fault.
Notify Your Insurer: Report the accident to your insurer promptly, but provide only basic facts. Do not speculate about fault or the extent of your injuries.
Keep Detailed Records: Save all medical bills, repair estimates, rental car receipts, and correspondence with insurance companies.
Consult an Attorney Early: Before providing recorded statements or accepting any settlement offer, consult with a legal professional to understand your rights and the true value of your claim. Early involvement allows your attorney to guide the process from the beginning, preventing missteps that could complicate your recovery.