Uninsured and Underinsured Motorist Claims
Nebraska has enacted the Uninsured and Underinsured Motorist Insurance Coverage Act. This Act sets forth the general rules regarding uninsured and underinsured insurance contracts, coverage and claims. If any provision of a Nebraska motor vehicle insurance contract provides less than what is required by the Act, that provision is invalid as the Act controls. However, the Act only sets forth the minimum requirements and an insurance company may offer coverage, terms and conditions more favorable than those required by the Act.
A lawsuit may be brought against an insurance company directly for an uninsured or underinsured claim. If an uninsured (UM) or underinsured (UIM) motorist claim is denied, the insurance company may also be liable for breach of contract or bad faith.
Unlike other motor vehicle accident cases, you sue the insurance company itself for a UM or UIM claim. The insurance company is entitled to assert any defense that the at-fault driver could claim if you sued them directly. In addition, the insurance company can assert any defense related to the insurance contract, such as failure to pay premiums, failing to follow policy or statutory requirements.
Definitions Under The Act and Their Interpretations
Principally garaged: a vehicle is principally garaged in the place where it is intended to be kept most often during the time period in which the insurance policy is to be in effect.
Motor vehicle: any self-propelled vehicle which is designed for use upon highway, including trailers designed for use with such vehicles, except certain mopeds, certain construction vehicles, electric personal assistive mobility devices, off-road designed vehicles, including, but not limited to, golf carts, go-carts, riding lawnmowers, garden tractors, all-terrain vehicles, certain minibikes and snowmobiles.
Uninsured motor vehicle (UM): (1) a motor vehicle in which there is no bodily insurance liability insurance or bond at the time of the accident; (2) the owner or operator of the at-fault motor vehicle is unknown and there is actual physical contact between the vehicles; (3) the owner or operator of the at-fault vehicle is unknown but there is no actual physical contact between the motor vehicles and (a) the accident has been reported to law enforcement and (b) the facts of the accident can be corroborated by evidence provided by an independent and disinterested person and not by the insured or any person occupying the insured vehicle.
Underinsured motor vehicle (UIM): a motor vehicle in which the amount of bodily liability insurance or bond is less than or has been reduced by payments is insufficient to fully compensate an injured person. A underinsured vehicle shall not include an uninsured motor vehicle.
Requirements Under The Act
Insurance Policies
All motor vehicle insurance liability policies delivered, issued for delivery or renewed for any motor vehicle principally garaged in Nebraska are required to contain coverages in the amount of $25,000 per person and $50,000 per accident arising from a motor vehicle accident involving an UM or UIM vehicle. If an insurance policy does not contain this minimum coverage, a court will impose these minimal limits onto the insurance company.
All insurance companies must offer an insured UM/UIM coverage limits amounts of at least $100,000 per person and $300,000 per accident.
UIM Claims
If a policy limits offer if made from an insurer under its bodily injury liability coverage, you must send a certified letter and certain documents to the insurance company(s) that have UIM coverage or your may not be barred from receiving money on your UIM claim.
Amounts Recoverable
A person is entitled to money for any bodily injuries or death sustained in an automobile accident subject to the limits either under the policy or imposed by law from an UM or UIM vehicle.
Monies paid under medical payment coverage shall not reduce the limits of UM/UIM benefits available.
If there is coverage under two or more UM or UIM policies, the total amount collectible is limited to the highest limit under a policy. For example, if one policy has a $25,000 limit and another has $100,000, the most a person can collect for UM or UIM is $100,000. However, depending on the order of priority, one insurer may pay their lower limit and the other insurer the difference. The motor vehicle in which the injured person is in is usually is the primary policy under coordination of benefits and the Act.
In addition to money for injuries or death, attorney fees may be awarded in UM and UIM cases.
Exceptions Under The Act
Generally speaking, unless the policy provides otherwise, a person cannot collect UM or UIM benefits if:
- A settlement is completed (money exchanged and releases signed) with the at-fault person’s insurance company without providing appropriate notice to the insurance company with UIM coverage;
- If the statute of limitations has expired on the claim against the uninsured or underinsured driver or owner;
- The following motor vehicles are not considered an uninsured or underinsured vehicle if:
- Insured under the liability coverage of the same policy of which the uninsured or underinsured motorist coverage is a part;
- Owned by, furnished, or available for the regular use of the named insured or any resident of the insured's household;
- Which is self-insured under sections 60-562 to 60-564 or is self-insured within the meaning of the motor vehicle financial responsibility law of any other state in which the motor vehicle is registered or any federal law which requires maintenance of financial responsibility;
- Which is owned by any government, political subdivision, or agency thereof;
- Which is located and used as a residence or premises and not as a vehicle;
- Which is used a public or livery conveyance and which is not insured as such;