Car Insurance Fraud in Lincoln, Nebraska

Car insurance fraud in Lincoln, Nebraska is a big problem. Nationwide, car insurance fraud costs consumers as much as $29 billion a year.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jun 12, 2020

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Here's what you should know...

  • Auto insurance fraud committed by agencies and individuals alike is an increasing problem in Lincoln, Nebraska
  • Being aware of all the driving laws in Lincoln will put you at a lower risk of being scammed
  • Checking BBB ratings and other company reviews before purchasing auto insurance is essential

Lincoln car insurance fraud is increasing and people need to learn how to protect themselves from it. The first thing is to know how people typically go about defrauding car insurance agencies.  Don’t get caught up with a dishonest company.

Insurance Fraud Examples

The most common car insurance scams in Lincoln appear to be:

  • Misrepresent a claim for a hit-and-run
  • Misrepresent a claim filed for a stolen vehicle
  • Arson
  • Filing a claim for more money than was owed
  • Filing a bodily injury claim for an injury that occurred prior to the current accident
  • Lying on a claim or a related document
  • Accepting clients’ premiums and never offering them the insurance policies

These common practices for committing Lincoln car insurance fraud are done by policyholders, groups of people conspiring against the insurance companies as well as people who work for the insurance companies. The last practice falls under this category. Read our Car Insurance Guide and then compare car insurance quotes with our ZIP code tool above!

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Lincoln Facts

Lincoln, Nebraska has a population that is becoming more and more susceptible to lawbreakers. In particular, auto insurance fraud and uninsured motorists who cause crashes between themselves and residents are making it so that Lincoln car insurance companies may have to charge higher rates. In both these instances, Lincoln drivers have ways that they can protect themselves against these two groups of people. But, everyone has rules to follow on the roads.

Lincoln DUI Laws

According to DUI insurance laws, Lincoln drivers may not drive their vehicles with a blood alcohol content (BAC) of .08 or more.

If they are under the age of 21 and register a BAC of .02 or more, they will be arrested for driving under the influence; if they are driving their companies’ vehicles with a BAC of .04 or higher, this will be enough for the police officer to arrest them.

Cell Phone Laws for Lincoln

Many accidents have had cell phones named as the reason they occurred. Because of this, Lincoln drivers must not use their handheld devices in any capacity while the vehicle is being operated. If there is an emergency situation in play, Lincoln drivers are exempt from these laws.

Violating Lincoln’s cell phone laws can cost these drivers a lot of money. The first offense requires a $200 fine, for the second, it’s a $300 fine and for the third, Lincoln drivers will be required to pay $500. Being cited for violating the cell phone laws adds three points to the residents’ driving records and when their Lincoln car insurance companies learn of this, their Lincoln car insurance rates tend to go up.

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Teen Driving Laws in Lincoln

Teens don’t receive their licenses on their 16th birthday without any restrictions; they are under a system that will see them progressing from one step to the other before they can receive their unrestricted licenses on their 18th birthdays:

  • First, they must receive their School Learner’s Permit (LPE) between 14 and 16 years of age
  • Second, they qualify for their School Permit (SCP) between 14 and 16 years of age
  • Third, they meet the requirements for their Learner Permits (LPD) at age 15
  • Fourth, they can apply for the Provisional Operator’s Permit (POP) at the age of 16

These restrictions give teenage learners a chance to practice their driving in increments before they are given full driving privileges as an adult and along with driver’s education courses, these steps can make Lincoln car insurance for teenagers less expensive.

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Liability Coverage for Lincoln Car Insurance

The typical auto insurance requirements for Lincoln car insurance apply, but Lincoln residents also have the need to purchase something that isn’t always required in other states; Lincoln drivers must have uninsured motorist/underinsured motorist coverage. Drivers must have:

  • $25,000 for one person injured in an accident with an uninsured or underinsured motorist
  • $50,000 for everyone injured in an accident with an uninsured or underinsured motorist

Although Lincoln has a growing number of people driving without insurance, it’s against Lincoln car insurance laws for them to do so. They and everyone else must purchase liability coverage for bodily injuries and property damages:

  • $25,000 for one person injured
  • $50,000 for everyone injured
  • $25,000 for property damages

Staged Auto Accidents

In the event that Lincoln drivers are hit by someone, the possibility exists that the accident was staged. An accident was staged if one driver causes the collision in order to claim that it was the other driver’s fault. Nebraska is a tort state which means that someone must be given the blame for the accident.

After this happens, the innocent driver can sue the at-fault driver for damages.

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Protect Yourself from Insurance Fraud in Lincoln

Drivers can do things to protect themselves against being the victim of Nebraska car insurance fraud.

  • Call the Police after Every Collision

Fraudsters may stage a minor accident, but they will take the opportunity later to add some damage to the vehicle. By involving the police, Lincoln drivers can prevent these types of actions.

  • Be Aware of People Who Appear on the Scene

Sometimes, these scammers have people ready at the scene who will be there to offer advice to the other drivers such as a particular doctor they think the driver should see. If these people’s presence seems as if it’s a little too convenient, they could be part of the Lincoln car insurance scam.

  • Don’t Drive Too Closely to the Car Ahead

Fraudsters take advantage of tailgaters because it’s easy for them to stage an accident with them. Car insurance fraud raises everyone’s insurance rates in Lincoln, so it’s important to be vigilant and aware when shopping for auto insurance. Taking precautionary measures like reviewing Better Business Bureau ratings for every company can save you from becoming a victim. Contact the Nebraska Department of Insurance for more information.

How Much Will Residents Pay for Lincoln Car Insurance?

When people are searching for Lincoln car insurance and they are relatively good drivers, they may receive quotes for the average car insurance rate of $1,192. If their rates are much higher than this, several factors may be at play. It may be the age of the applicant or it’s the driving record. It may also be the person’s credit score. Whatever the reason, Lincoln car insurance agencies will set their automobile insurance rates according to each applicant’s specific characteristics.

Compare Quotes for Lower Rates

People who have several accidents on their driving records can expect to be given the higher rate quotes but if they compare the quotes from multiple car Lincoln car insurance companies on a comparison website, they have the best chances of finding their insurance coverage for better prices.

Different Lincoln car insurance agencies can look at the same driving record and offer two entirely different quotes to the applicant, so it’s to their advantage to take up up on our offer to find the car insurance quotes for you.

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People Who Can Expect the Lowest Rates

Some people automatically receive the lowest quotes. These are women, people who live in rural areas, people over the age of 25, those who are married, drivers without any tickets on their records, those who drive economical cars, those who drive very few miles every year, drive a well-made car built for safety, those without any at-fault accidents and those with high credit scores. People who drive the most reliable cars can save greatly on their car insurance!

One Good Reason to Compare Lincoln Car Insurance Quotes

Even though the people listed above typically receive the lowest quotes, this may not necessarily be the case with each Lincoln car insurance agency. These people must not dismiss the idea of using a comparison website.

They can still compare quotes with the hope of finding the low rate auto insurance possible for them because no matter how low the quote may be, there may be a company that will offer an even lower quote.

No one would be wasting their time comparing Lincoln car insurance quotes from a comparison website.

It’s not just because a comparison website is so easy to use and does all of the searching; it’s also because everyone could use a break on their Lincoln car insurance rates. There’s no reason to pay more for a product when there’s a possibility of paying less, so go ahead and start the search now.

Enter your ZIP code below and find affordable car insurance for FREE.

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