Detailed Answer
Disclaimer: This article provides general information only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
When an accident occurs in Nebraska and the at-fault driver’s liability insurer pays out the full policy limits but your out-of-pocket expenses exceed that amount, you have several options to recover additional losses such as rental car costs or loss-of-use damages.
1. Uninsured/Underinsured Motorist (UM/UIM) Coverage
Nebraska law requires insurers to offer UM/UIM coverage. If you purchased it, you can file a claim under your own auto policy to cover losses beyond the at-fault driver’s limits. By statute, an “uninsured motor vehicle” includes an underinsured vehicle whose owner’s liability limits are insufficient to cover your claim (Neb. Rev. Stat. § 44-6402(14)). After notifying your UM/UIM carrier in writing, submit:
- A copy of the at-fault insurer’s payment and policy limits.
- Invoices for your rental vehicle or documentation showing loss of use.
- A written statement of your total damages.
Your carrier must then investigate and either settle, deny, or offer binding arbitration (Neb. Rev. Stat. § 44-6413).
2. Rental Reimbursement or Loss-of-Use Coverage
If you added rental reimbursement or loss-of-use coverage to your policy, your insurer will pay for a substitute vehicle while yours is repaired, up to your policy limits. Nebraska law allows insurers to offer these optional coverages (Neb. Rev. Stat. § 44-711). To pursue this claim:
- Review your declarations page for your rental or loss-of-use limits.
- Notify your insurer immediately after the accident.
- Provide rental invoices and repair estimates.
3. Direct Lawsuit for Consequential Damages
Even without optional coverages, Nebraska courts may award consequential damages like loss of use if you prove the at-fault party’s negligence caused your inability to use the vehicle. While no specific statute governs loss-of-use, courts look to damage principles in Neb. Rev. Stat. § 25-810 and related case law. You would:
- File a civil suit against the at-fault driver for breach of duty.
- Document the fair rental value or reasonable cost to rent a similar vehicle.
- Prove the length of time your vehicle was out of service.
Keep in mind personal assets recovery can be challenging if the at-fault party has limited resources.
Helpful Hints
- Review your auto policy’s declarations page to confirm coverages and limits.
- Report the accident promptly to both insurers and keep written records.
- Obtain itemized rental invoices and repair shop estimates.
- Track all communications with insurers in writing.
- Consider consulting a personal injury attorney if your UM/UIM claim is denied or disputed.
- Act quickly: statutes of limitation for property damage in Nebraska generally run four years from the accident date (Neb. Rev. Stat. § 25-207).