The best, cheapest car insurance in Nebraska

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Our take

Auto-Owners is the best insurer in Nebraska, based on Insure.com research of state rates and third-party rankings. Auto-Owners received 4.01 out of 5 stars.

Best car insurance company in Nebraska

In Nebraska, the average premium for car insurance is $1,902 a year or $159 a month, which is the 24^th highest in the country; Louisiana was number one.

For drivers looking for cheap car insurance in Nebraska, Auto-Owners, Nationwide, Shelter Insurance, Progressive and others on our list are great options, offering plenty of coverage options at affordable rates.

Insure.com research found Auto-Owners offers low rates when compared to its competitors and received high marks when we look at other factors including J.D Power customer satisfaction scores, financial strength rankings and complaint data. Auto-Owners was Insure.com’s top scorer and was awarded 4.01 out of 5 stars.

Nationwide finished second in our rankings with a score of 3.41 stars and Progressive was third at 2.95 stars.

How we picked the top auto insurance companies

When choosing the top car insurance companies in the state, we not only looked at the average cost of coverage but also J.D. Power customer satisfaction scores, AM Best financial strength ratings and National Association of Insurance Commissioners (NAIC) complaint rankings. National averages were used where state/regional data was not available.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights, to arrive at an overall star rating.

• Premiums: 25%
• JD Power: 30%
• AM Best: 25%
• NAIC: 20%

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Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

Cheapest car insurance in Nebraska

Auto-Owners has the lowest average rate in Nebraska at $1,193 a year or $99 A month.

Nationwide is the next most affordable at $1,216 annually and Shelter Insurance at $1,647. While these insurers had the cheapest average premiums, there are plenty of other options for coverage in the state.

Insurers consider a wide variety of factors when setting a rate and use proprietary algorithms which can result in dramatic differences in premium quotes. Where you live also affects rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Chong Gao, director of product management R&D at Mercury Insurance. “Nebraska, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

The data shows how shopping around for coverage can result in savings. While Auto-Owners had the lowest average rate at $1,193, Allstate was the most expensive at $2,621.

The table below shows the cheapest full-coverage car insurance rates in Nebraska for a 40-year-old driver of a Honda Accord LX.

Full coverage car insurance in Nebraska

As noted, the rates above are for full coverage car insurance. Full coverage car insurance adds collision and comprehensive to your liability insurance coverage, so your vehicle is repaired or replaced after an incident.

Full coverage insurance includes collision and comprehensive which will pay to repair your vehicle. Collision covers damage caused by a collision with another vehicle or object while comprehensive repairs damage done by perils such as fire, theft, flooding, vandalism, and more.

Learn more about liability, collision and comprehensive coverage here.

Shopping for car insurance in Nebraska

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance. Experts often tell consumers to shop for insurance yearly. But that doesn’t necessarily mean you should be looking to switch.

“I recommend that people stay with the same insurance company, as they tend to get a better rate when they have been with the same carrier for more than 12 months. The more tenure you have with a carrier, the more potential there is to earn benefits,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. “The carrier can also review your claims history and provide information about applicable discounts.”

But make sure you are comparing like coverage levels and deductibles.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” Bottini says. “However, if a person has low limits, say 25/50/25 – limit per person/per occurrence/limit for property damage – I am going to recommend and quote at least 50/100/100. Depending on their age/income and profession, I would quote higher limits to protect their net worth and earnings potential.”

Bottini also says people can save money on their car insurance by keeping their credit score up, following the speed limit and placing both home and auto insurance with the same carrier.

Cheapest car insurance in Nebraska by age

Statistics show that young drivers, because they are inexperienced and tend to take more risks, have more accidents and claims, all of which lead to higher premiums for younger drivers.

“Data indicates that teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups,” says Chong Gao, director of product management R&D at Mercury Insurance. “For teenagers, the lack of driving experience is a significant factor that impacts their rates; younger drivers with little experience behind the wheel tend to pay higher insurance premiums.”

Auto-Owners is the cheapest insurer in Nebraska for teens.

Age factors into a premium as the data clearly shows. Teens pay the highest rates by far with the lowest premium coming in at $3,296 which is 217% more expensive than the most affordable coverage for seniors at $1,040 and 67% more than young drivers’ best rate of $1,972.

Rates start to drop, assuming their driving record stays clean as teens move into their young adult years and tend to stay stable until a driver gets into their 70s when rates will go up a bit.

Cheapest car insurance for senior drivers in Nebraska

Seniors pay more for car insurance than other drivers, excluding teens. Nationwide is the best choice for seniors in Nebraska, according to our data, with an average premium of $1,040 annually, which translates to $87 a month.

Auto-Owners was the second most affordable at $1,178 and Shelter Insurance was next with a premium of $1,530.

“Seniors tend to have slower reaction times and may suffer from vision or hearing impairments, which can impair their driving ability. This makes them more prone to accidents and thus considered high-risk by insurance companies,” says Tariro Goronga, CEO of DriveSafe driving schools in Colorado.

The table below shows the average premium for senior drivers.

Car insurance for young drivers in Nebraska

Young drivers (21-25) have seen their premiums drop from their teen years, but they still pay more than more experienced drivers. In Nebraska, Nationwide is the cheapest option for young adults with a yearly premium of $1,972 or $164 a month.

Auto-Owners is the next most affordable with an average rate of $2,031 followed by Progressive at $3,051.

Young drivers, if they keep their driving record clean will see their rates drop even further as they move into their late 20s.

The table below shows the best insurers for young drivers in Nebraska:

Car insurance for teen drivers in Nebraska

Although teen drivers always pay much higher premiums than other driver groups, Auto-Owners offers teens the cheapest rate at $3,296. Teen drivers are inexperienced and are big risk takers which results in more accidents and claims, pushing up the cost of coverage.

“Teenagers are more likely to be involved in accidents than older drivers because of their lack of experience. This increased risk results in higher insurance rates because insurance companies regard them as high-risk drivers,” says Goronga. “Teenagers are also more likely to engage in risky driving behaviors, such as distracted driving or speeding, increasing their chances of being involved in an accident.”

Nationwide has the second most affordable premium at $3,918 a year followed by Shelter Insurance at $5,152 annually.

Our data clearly shows how dramatic premium differences can be for teens and how important shopping your coverage is when trying to find the best rate for your specific risk factors. While Auto-Owners was the most affordable at $3,296, Progressive was the most expensive with an annual premium of $8,171.

There are a few ways to save some money when insuring a teen. Ask your insurer for a good student discount if they are carrying a B average or better. Putting your teen in an older vehicle that you wouldn’t repair after an accident can help save some money by dropping collision and comprehensive.

The chart below shows average premiums for teens in Nebraska:

Average cost of car insurance in Nebraska

Nebraska is the 24^th most expensive state (Louisiana is number one) when it comes to car insurance with an average premium of $1,902.

The table below shows the average rate in each state for a 40-year-old driver of a 2023 Honda Accord LX.

Which Nebraska ZIP codes are most expensive for car insurance?

Insurers consider the ZIP code where your car is parked when setting a premium. High crime rates or frequent severe weather will result in a higher premium.

According to our analysis, the following ZIP codes are the most expensive in Nebraska for car insurance. Hayes Center tops the charts at $2,273 a year.

Here are the most expensive ZIP codes in Nebraska for car insurance:

Which Nebraska ZIP codes are the cheapest for car insurance?

Rural areas are almost always cheaper than urban areas when it comes to car insurance. Fewer people and cars on the road mean fewer accidents and claims. The cheapest zip code for car insurance in Nebraska is in Lincoln with an annual premium of $1,668.

Cheapest car insurance for high-risk drivers in Nebraska

Drivers with a speeding ticket, DUI or at-fault accident on their record are often considered high-risk drivers and end up paying more for coverage. The increase can range from reasonable for a speeding ticket to a big leap in costs for a DUI.

The data showed that a speeding ticket will result in a 29% increase, pushing the average rate to $2,380. Speeding tickets will typically impact your premium for at least three years.

An at-fault accident will raise your rates by 54% to an average of $2,842. A DUI will result in the biggest increase, sending your premium up 137% to an average of $4,374.

The table below shows the average increase for drivers with an incident on their record:

Minimum car insurance requirements in Nebraska

Nebraska law requires drivers to carry Null in personal injury protection (PIP) and a minimum of $25k in property damage liability (PDL), which helps pay for damage you do with your car to other people’s property.

What our expert says

Q: Does location affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates. Nebraska, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

Mark Vallet

Contributing Researcher

 

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Mark is a freelance journalist and analyst with over 15 years of experience covering the insurance industry.