Reader’s Question:

My brother ,who has his own car insurance was driving my parents vehicle and rear ended another car at a stop sign. No physical damage was done to the other vehicle, but the driver is saying that he might have injuries. Whose auto insurance will pay for his personal injury claims? The accident happened in Omaha, Nebraska and my brother is from Illinois.

Billy

Omaha, NE

So the accident happened in Omaha, Nebraska and I am assuming that the other driver your brother hit is insured in Nebraska. Nebraska is NOT a no -fault state and a system is intended to lower the cost of car insurance by taking small claims out of the courts. Each insurance carrier compensates its own policyholders for the cost of minor physical injuries regardless of who was at fault in the incident. These first-party benefits, which are a mandatory coverage, differ by state with no-fault systems. A policyholder, in states with the most comprehensive benefits, gets compensation for medical fees, funeral costs, lost wages, and other out-of-pocket expenses. Since the state of Nebraska does not follow the ‘no-fault’ system, your parents policy may be liable for this other driver’s injuries. Your parents should tell their insurance provider of this loss. A licensed claims adjuster will be able to give you additional advice.

Tags: auto insurance claims, car insurance, car insurance cost

Reader’s Question:

My insurance company in Lincoln, Nebraska wants to increase my car insurance premiums due to a bad credit record. Do all insurance companies run credit check?

Hughes

Lincoln, Nebraska

Not all insurance companies check credit score when an individual buys car insurance so you may be able to find one in Lincoln, Nebraska that would not check your credit score as part of their rating system.

The best way is to shop around for car insurance and find an insurer that does not check credit score as a rating factor until you are able to build up a better credit score.

The amount that a credit rating can affect your car insurance rates in some states is governed by the state’s insurance regulator. To check if your state has regulations regarding car insurance providers using your credit score as part of the rating process contact this state agency.

Tags: auto insurance, Car Insurance Company