Auto Insurance Claims Could Be Opened to Family Members in Nebraska

Nebraska lawmakers may allow car passengers to make liability insurance claims when their family members cause car wrecks.

The Nebraska Legislature on Jan. 22 narrowly gave first-round approval to a bill (LB216) that would repeal the state’s so-called guest statute. The statute says passengers related to drivers who cause wrecks can make liability claims for their injuries only when the drivers were grossly negligent or intoxicated.

The law was intended to prevent family members from conspiring to scam insurance companies.

Supporters of the bill say the law leaves injured passengers with medical bills they often can’t pay and are sometimes picked up by state-funded Medicaid.

Opponents say that repealing the law could increase insurance rates.

Nebraska Legislature: www.nebraskalegislature.gov

Latest Comments

• January 27, 2010 at 3:27 am

  Dick says:

  Wisconsin has allowed this type of suit for as long as I can remember without any real adverse consequences. In fact at one time State Farm had a "relative" exclusion in their... read more
• January 26, 2010 at 5:53 am

  DS says:

  Right, and it will only lead to higher premiums once the claims have to be paid.
• January 26, 2010 at 12:36 pm

  esquire says:

  as these state welfare agencies continue to be strained by reduced funding, look for this to become the norm around the country. any way to reduce the burdeon on the taxpayer... read more