Auto Insurance Claims Could Be Opened to Family Members in Nebraska

January 26, 2010

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

Topics Claims Auto Nebraska

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