Proposal to double Nebraska minimum auto liability limits sparks insurer pushback

Senator Ashley Spivey opened the LB793 hearing by arguing Nebraska’s minimum liability requirements — last meaningfully updated in the 1980s — lag current vehicle and medical costs and leave injured parties exposed. ‘‘When coverage levels are set too low, this shifts financial risk away from the responsible driver and on to the victim,’’ she said.

Supporters such as Mark Richardson of the Nebraska Association of Trial Attorneys urged the committee to increase the floor, noting growth in average bodily injury claim amounts and citing examples of clients left with unpaid medical bills or bankruptcy. Proponents said a modest premium increase was an appropriate tradeoff to protect victims.

Insurers and trade groups strongly opposed the change. Robert Bell (Nebraska Insurance Federation) and Matt Holman (FMNE Insurance Company) presented data saying the industry’s loss ratios and claims experience have driven rapid premium growth, warned doubling minimums would produce significant premium increases for marginal policyholders, and cautioned it could push some consumers out of the market. Industry witnesses emphasized Nebraska’s current stacking and UM/UIM structure makes direct comparisons to other states complex.

Committee members asked about CPI adjustments, offsets, uninsured motorist rates, and whether an offset or incremental approach would achieve the sponsor’s goals with fewer market impacts. No vote was taken at the hearing; sponsors signaled willingness to work with insurers on policy design.