Reader’s Question:

If you are still financing your vehicle in Omaha, NE, , are you required to have comprehensive and collision insurance?

Brenda

Omaha, NE

The state of Nebraska requires all registered motor cars to maintain proof of financial responsibility insurance. It is not a NE state law that requires you to keep physical damage coverages of collision and comprehensive on a financed car but instead it is typically the lien holder that mandates these coverages be placed and carried on the car.

Usually, in your finance documents there is a description of the types of insurance that needs be obtained and kept on the car until it is paid off and become the title holder of the vehicle in Omaha without a lien holder on it.

The loan or leasing company wants their asset, the car, to be properly covered with these physical damage coverages. If you choose to not place the types of car insurance that your financing company requires they can place “forced” insurance on it or may even be able to take the car back.