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  While each state has certain policies and provisions in place regarding different types of insurance, it is important for residents to comply with what their particular state mandates as a standard. There are several regulations applicable to the cornhusker state when it comes to insurance that every Nebraska citizen should know.
  
  

Liability Insurance

• The state of Nebraska requires all motorists to have liability insurance to operate a vehicle. Liability insurance is considered the state minimum. A liability policy should include the following: $25,000 for bodily injury or the death of one person in an accident; $50,000 for bodily injury or the death of two or more people in an accident; $25,000 for property damage in an accident; and $25,000/$50,000 for uninsured or underinsured motorists per person in an accident. The penalty for not having insurance, while driving, is a suspended license.
  
  

Tort and No Fault Systems

• Most states follow either a "no fault" or "tort" system regarding auto insurance. In a no fault system, each person's insurance company pays for his own damages regardless of who was at fault in an accident. The "tort" system of auto insurance, on the other hand, revolves around the principle of provable negligence. The state of Nebraska follows a traditional tort system of auto insurance which means that if you cause an accident, your insurance company will pay out the money to anyone you injured in that accident based on your liability coverage. You are not required to purchase coverage for your medical bills or property loss in Nebraska.
  
  

Additional Coverage

• Because Nebraska follows the tort system, you may wish to purchase additional coverage although it is not required by law. For example, if you purchase personal injury protection, then your insurance will pay your medical bills if you cause an accident and are injured as a result. If you purchase collision coverage, then your property damage will be covered if you cause an accident.
  
  

Uninsured/Under-insured Motorist Requirement

• While optional in some states, Nebraska requires all motorists to have uninsured/under-insured motorist coverage. The ratio deemed acceptable is $25,000/$50,000 per person. This form of coverage protects you if an uninsured or under-insured motorist hits you in an accident.
  
  

Previous Driver Restrictions

• In the state of Nebraska, if a motorist lets his auto insurance policy lapse, his license will be suspended until he can provide proof of auto insurance to the Nebraska Department of Motor Vehicles (DMV).