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Auto Insurance 101: Fremont, NE First Time Car Buyers Auto Insurance Guide

By March 20, 2024No Comments

Congratulations on getting your first car! It’s an exciting and huge milestone toward having the freedom to travel and seek new adventures without having to wait for a ride! Along with a new car, though, come responsibilities and insurance requirements. As a first-time car buyer in Fremont, NE, understanding auto insurance is essential for protecting yourself financially. It’s not just about finding the cheapest possible quote; it’s about making sure you have the right coverage to safeguard you in unexpected situations on the road. Choosing the right insurance policy will give you the protection you need if you’re at fault in a wreck, and will protect your investment, so you can focus on enjoying your newfound independence.

Why You Need Auto Insurance

Driving without auto insurance is not only risky but, in the State of Nebraska, it’s illegal. Insurance protects you against financial losses if you cause an accident. Without it, you could be responsible for hefty medical bills, legal fees, and property damage if you cause a crash—something that might quickly exceed your ability to pay.

Nebraska Minimum Car Insurance Requirements

To drive legally in Nebraska, you must carry the following minimum insurance coverage:

Bodily Injury Liability:

  • $25,000 per person—This covers costs related to injuries caused to another person in an accident where you’re at fault.
  • $50,000 per accident—This is the total amount your insurance will pay for injuries to multiple people in an accident where you’re at fault.

Property Damage Liability:

  • $25,000—This covers damage you cause to another person’s property (vehicles, buildings, etc.) in an accident.

Uninsured/Underinsured Motorist Bodily Injury:

  • $25,000 per person—This protects you if you’re injured by a driver without insurance.
  • $50,000 per accident—This protects you if you’re injured by a driver who doesn’t have sufficient insurance to cover your medical costs.

Important Note: These are just the minimum auto insurance requirements that first-time car buyers in Fremont, NE need to be aware of. Consider purchasing higher coverage limits for better financial protection.

Choosing the Right Auto Insurance: Key Options

There are two main categories of auto insurance for first-time car buyers in Fremont, NE, protection for yourself and your car, and liability coverage for damage to others and their property. Here’s a breakdown of common coverage types:

  • Collision Coverage: This pays for repairs if your car collides with another object, like a vehicle, fence, or other stationary objects.
  • Comprehensive Coverage: This covers your car from losses beyond collisions, such as damage from theft, vandalism, fires, weather damage, and falling objects.
  • Liability Coverage: If you cause an accident, this pays for injuries to others and damage to their property, including other vehicles.
  • Medical Payments Coverage: This helps cover medical costs for you and any passengers injured in an accident, regardless of who’s at fault.

You can also add optional coverage like rental car reimbursement or roadside assistance to your policy.

Choosing Your Deductible

A deductible is the amount you pay out-of-pocket before your insurance kicks in. Typically, choosing a higher deductible lowers your premiums. It’s important to select a deductible you can afford in the event of an accident.

Factors Affecting Your Insurance Costs

Insurance companies take several things into account when setting your rates. These include:

  • Your driving record: Safe drivers pay lower premiums.
  • The type of car you drive: Insuring a sports car is usually more expensive than a standard sedan.
  • Your location: Costs may vary depending on crime rates and traffic density in your area.
  • Your credit score: In many states, insurers can use your credit history when determining your premiums.

Finding the Best Insurance Coverage

As a first-time car buyer in Fremont, NE, here’s how to make sure you’re getting the right coverage at the best price:

  • Obtain quotes from different companies: Comparing offers will help you find the most competitive rates.
  • Ask about discounts: Insurers offer many discounts, such as those for good students, bundling home and auto coverage, or staying accident-free.
  • Review your policy regularly: Update your policy as your life changes, like buying a new car or getting married.

It Pays to Do Your Homework

Before you purchase auto insurance, spend some time comparing different policies, ask questions about coverage, and carefully consider your options. A knowledgeable insurance agent can guide you through the process.

Your Local Auto Insurance Experts

For helpful resources and personalized advice on car insurance, visit or contact Eric Luebbe Insurance in Fremont, NE. We help first-time car buyers find the best auto insurance coverage for their needs.