Omaha, NE Car Insurance
How much does car insurance cost in Omaha?
Auto insurance in Omaha has an average cost of $903 for a six-month policy or about $150 per month. According to our data for 2023, Farm Bureau Mutual has the cheapest rates among car insurance providers in Omaha, offering coverage at just $590 for a six-month policy. However, it's crucial to consider that Farm Bureau's policy may not provide the best protection for your individual needs, so keep reading to explore other reasonably priced options for auto insurance in Omaha.
For Omaha residents, car insurance rates are slightly lower than the Nebraska average, which is approximately $908 every six months. However, the city's average rates are higher than the national average of $742 every six months. It's worth noting that a significant number of Omaha customers, around 37%, feel that their premiums are too high. If you're one of these customers or if you simply want to learn more about your car insurance options in Omaha, read on to find out how rates are calculated and what factors influence them.
| Car Insurance in Omaha vs. Nebraska | Avg. 6 Mo. Premium |
|---|---|
| Nebraska Average | $908 |
| Omaha Average | $903 |
The cheapest car insurance companies in Omaha
Farm Bureau (IA Group) takes the prize for the cheapest coverage at $98 per month or $590 for a six-month policy.
A close second on our list is USAA, offering auto insurance rates of just $101 per month ($605 for six months). USAA tends to offer competitive rates but is also specifically for military members and their families, so be sure to check your eligibility.
Third-cheapest on our list and another great option is Farmers Mutual of Nebraska. A policy from Farmers Mutual in Omaha costs $654 per six-month policy, which is still reasonable at $109 per month.
The Zebra's key takeaways about car insurance in Omaha:
- The average cost of a car insurance policy in Omaha is $903 per six-month policy — about $150 per month.
- The cheapest company in Omaha is Farm Bureau ($590), but USAA and Farmers Mutual are other great options.
- 37% of The Zebra's customers in Omaha are using our tools because they feel they're paying too much for their current auto insurance.
Are you paying too much for auto insurance?
Omaha car insurance rates by company
In Omaha, Nebraska, Farm Bureau (IA Group) is the best choice for affordable comprehensive auto insurance based on our 2023 data, with rates starting at $98 per month or $590 for a six-month policy. USAA is the second cheapest option, charging $101 per month or $605 for six months. Both companies have many policy options to fit your auto insurance requirements but keep in mind that eligibility requirements or pricing disparities based on your profile may differ between companies. For further details about the top-rated car insurance providers, see The Zebra's Customer Satisfaction Survey.
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Cheapest car insurance companies in Omaha, NE
| Company | Avg. 6 Mo. Premium |
|---|---|
| Farm Bureau Mutual (IA Group) | $590 |
| USAA | $605 |
| Farmers Mutual of Nebraska | $654 |
| Nationwide | $696 |
| GEICO | $717 |
| Allstate | $1,205 |
| Progressive | $1,240 |
| State Farm | $1,429 |
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
Shop around to save on car insurance
If you want to find affordable car insurance that meets your needs, it's recommended that you compare rates and shop around. Our comparison tools make this easy by taking care of the hard work, leaving you free to choose the coverage that suits you best. Simply enter your ZIP code to view rates from top companies like Progressive, Allstate, State Farm, and others to find the most suitable and inexpensive car insurance in Omaha.
Average car insurance in Omaha by rating factor
It can be a challenge to find a car insurance company that fits your needs without costing too much. As you look at each company, the insurance companies are also looking at you as a driver. Specifically, at different rating factors — things such as age, driving history and location. Even though all companies use the same things to rate you, they all do it differently. Some might really care about your credit score, while others might look more at how many claims you've had in the past.
To make sure you're not paying too much as things change in your life, it's a good idea to ask for new quotes every six months or so.
Q: I didn't have an accident — Why is my insurance going up?
A:Â End-of-year earnings are a crucial factor in determining the cost of car insurance in Omaha, as they evaluate the revenue generated by premiums compared to the cost of claims paid out to insured drivers. Even if you have a spotless driving record, you may still face higher rates from certain insurers due to the increased expenses associated with conducting business in the area.
Auto insurance premiums by age in Omaha
Age is one of the critical factors considered when determining insurance rates. Insurance providers rely on data to gauge the likelihood of drivers being in accidents or making claims. Unfortunately, teenage drivers have the highest accident rate compared to any other age group. As a result, they are charged the highest premiums. In Omaha, for instance, teenage drivers pay up to $3,410 more in premiums per year compared to drivers in their 20s.
Insurance companies understand that insuring a teen driver can feel like a significant financial burden, but they operate on a risk management basis. Since teenage drivers are more likely to get into accidents, insurance companies charge them higher premiums to offset the increased cost of claims. By doing so, they ensure that they can continue to provide insurance coverage to all their clients, including those with teen drivers.
Cheapest car insurance companies for teen drivers in Omaha, NE
| Company | Avg. 6 Mo. Premium |
|---|---|
| Farmers Mutual of Nebraska | $1,411 |
| Farm Bureau Mutual (IA Group) | $1,785 |
| USAA | $1,842 |
| GEICO | $2,163 |
| Nationwide | $2,417 |
| Allstate | $2,920 |
| State Farm | $5,033 |
| Progressive | $5,066 |
Zebra Tip:Â The cheapest companies for Omaha drivers between 20-40 are USAA, Farm Bureau, and Farmers Mutual of NE
Data shows that the majority of Omaha drivers fall between ages 20 and 40. This age group pays an average of $1,003 every six months, but by choosing one of these three companies they could see savings of up to 26%.
Auto insurance premiums for minimum coverage in Omaha
The insurance rates you pay are heavily influenced by the level of coverage you decide to purchase. According to our data, a significant proportion, 31% of Omaha drivers have opted for the state's minimum coverage. Although drivers are obligated to have a certain level of coverage, sticking with the bare minimum could leave you underinsured in the event of an insurance claim.Â
Opting for collision coverage or comprehensive coverage, which is commonly known as "full coverage" when bought together, will make your rates go up, but the extra peace of mind they provide can be priceless. These coverages will typically require a deductible, which varies in amount and also impacts your rate. Choosing a higher deductible will result in lower rates, whereas a lower deductible will result in a higher policy cost.
Moreover, you should also consider features like roadside assistance or uninsured motorist coverage which can shield you from drivers who are uninsured or underinsured. While your insurance premium will be higher with these add-ons, The Zebra recommends them as they provide an extra layer of protection for you later on.
Q: Can I lower my car insurance coverage?
A: Possibly — if your vehicle is paid off.
In an analysis of our data, 50% of drivers in Omaha have owned vehicles. If you aren't leasing or financing, you might consider if dropping comprehensive or collision coverage is right for you. We recommend getting the actual cash value of your vehicle via Kelley Blue Book or another reputable source. In general, if your vehicle is worth less than $4,000, you probably don't need collision coverage. Bear in mind, however, that dropping these coverages means that you will have to pay for any repairs out of your own pocket if you're involved in an accident.
Cheapest car insurance companies for minimum coverage in Omaha, NE
| Company | Avg. 6 Mo. Premium |
|---|---|
| Farmers Mutual of Nebraska | $152 |
| Farm Bureau Mutual (IA Group) | $188 |
| GEICO | $203 |
| USAA | $203 |
| Nationwide | $250 |
| Allstate | $349 |
| Progressive | $390 |
| State Farm | $459 |
39% of The Zebra's customers in Omaha choose the basic tier of coverage, but it may not be the best option for your specific needs. Carrying the state minimum required coverage is another option to save money, but it can leave you in a tough spot if you're involved in a multi-car accident or one where people are injured. Nebraska's 25/50/25 liability limits provide coverage for damage you cause up to $25,000 per person in bodily injury, $50,000 per accident in bodily injury and $25,000 for property damage — sometimes this coverage is enough, but in many instances, it won't be.
Learn more about insurance laws in Nebraska.
Omaha car insurance rates by credit score
When calculating insurance premiums, credit score is a crucial factor in most states, including Nebraska. This metric is just as important as age and driving history. However, the question remains: why does credit score matter so much? Analysis of historical data shows that drivers with low credit scores have a higher tendency to file claims, have lapses in coverage, and engage in risky driving behavior. Consequently, insurance companies see good credit scores as a sign of low-risk behavior and offer lower rates. If you want to save on your auto insurance, improving your credit score is an effective approach.
Omaha motorists with a credit score of 300-579 pay 134% more than those with scores of 800-850, according to our analysis. The data shows that most drivers in Omaha have a credit score categorized as "average (580-679)" In 2023, Farm Bureau is the cheapest insurance option for Omaha drivers in that credit tier.
Cheapest car insurance companies for bad credit in Omaha, NE
| Company | Avg. 6 Mo. Premium |
|---|---|
| Farmers Mutual of Nebraska | $946 |
| GEICO | $965 |
| Nationwide | $974 |
| USAA | $1,071 |
| Farm Bureau Mutual (IA Group) | $1,123 |
| Allstate | $1,673 |
| Progressive | $2,575 |
| State Farm | $6,239 |
Zebra Tip: If you've improved your credit score, it's time to shop for car insurance!
Our data indicate that Omaha drivers with "Poor" credit pay $1,264 more annually for car insurance than those with "Fair" credit. If you're looking to save money on your car insurance, it's worth taking steps to improve your credit. Check with your preferred credit monitoring service to see if your recent efforts have paid off and could lead to lower car insurance premiums.
Auto insurance rates with an at-fault accident
Accidents where the driver is at fault and those classified by collision type are the most frequently filed insurance claims. In 2023, an at-fault accident led to an increase in the average monthly car insurance rates in Omaha by anywhere from $49 to $77. Following an at-fault accident, the cheapest insurance company in Omaha is Farmers Mutual of Nebraska.
If you want to keep your auto insurance rates affordable, it is essential to have a clean driving record by avoiding citations and accidents, regardless of your location. Rate increases are caused by at-fault accidents, DUIs and DWIs, reckless driving charges, and speeding citations. The duration of the impact on your premium varies depending on the type of accident or citation, but DUIs and DWIs have a more extended effect.
Cheapest car insurance companies after an at-fault accident in Omaha, NE
| Company | Avg. 6 Mo. Premium |
|---|---|
| Farmers Mutual of Nebraska | $796 |
| USAA | $872 |
| Farm Bureau Mutual (IA Group) | $934 |
| Nationwide | $1,135 |
| GEICO | $1,236 |
| Allstate | $1,705 |
| State Farm | $1,757 |
| Progressive | $1,817 |
Omaha car insurance rates by violation
Take a look at the table below to see exactly how much a citation or violation could cost you in Omaha.Â
Car insurance rate increases after violations and citations in Omaha, NE
Why is car insurance in Omaha so expensive?
Auto insurance in Omaha might give you sticker shock for a variety of reasons. One reason is that the city's cost of living is higher than in other Nebraska cities, resulting in higher premiums to cover insurers' costs. Your driving history, credit score, and coverage level are only a few of the factors that impact your rates. Other factors also come into play. Let's explore why auto insurance can be expensive in Omaha, even for a driver with an excellent record.
Most cities have experienced an increased cost of living for residents over the past couple of years, and usually, that also means an increased cost of doing business for auto insurers. Insurance companies have to account for these extra expenses, so some of these costs are passed on to consumers to help offset the increase.
Omaha, like most metropolitan areas, has regions that are more susceptible to crime, theft, and uninsured motorists than others. If you reside in a high-crime neighborhood, you're likely to pay more for auto insurance than if you lived in a different part of town. However, the insurance rates in Omaha don't fluctuate much more than a few dollars from one ZIP code to the next.
Certain climates or regions that have hurricanes, frequent flooding or experience regular natural disasters will increase the risk for insurance companies, resulting in higher premiums. Omaha does have occasional tornadoes, hail and snowstorms to consider. Weather-related damage is covered under comprehensive coverage, so if you are concerned about possible damage we definitely recommend you carry this as part of your policy in Omaha.
With a larger population than more remote areas of Nebraska, Omaha has more vehicles on the road, which leads to more accidents. The expenses related to accident claims are usually passed on to other drivers in the area through higher premiums — this is also the case for drivers who infrequently use their cars. Based on our data, 65% of drivers in the city are insured, but this means that about 33% of drivers in Omaha aren't. If you have an accident with an uninsured driver in Omaha, you may have to cover the entire repair cost yourself.
Zebra Tip: Uninsured property damage coverage is good to have in Nebraska
If you live in an area of Omaha with a high percentage of uninsured drivers, we advise carrying uninsured motorist coverage (UMPD). This coverage can be helpful if you or your vehicle is damaged by an underinsured or uninsured driver. UMPD coverage typically has a lower deductible and is less costly than collision coverage. Additionally, the rate increase following a UMPD claim can be significantly less expensive than after a collision claim.
Bundling insurance policies in Omaha
If you're looking for ways to lower your car insurance expenses, bundling your homeowners or renters insurance with your auto insurance is an easy option. By bundling, you could save up to 10% on combined premiums. Learn more about how combining home and car insurance can help you save money on your auto coverage, regardless of where you reside.
If you're looking to save money on your insurance, consider bundling home and auto policies. Take the time to compare rates from multiple insurers to find the best deal, and you could save a significant amount of money on your insurance premiums.
Cheapest car insurance companies for bundling home and auto insurance in Omaha, NE
| Company | Avg. 6 Mo. Premium |
|---|---|
| Farm Bureau Mutual (IA Group) | $538 |
| USAA | $577 |
| Farmers Mutual of Nebraska | $590 |
| Nationwide | $614 |
| GEICO | $681 |
| Allstate | $1,107 |
| Progressive | $1,129 |
| State Farm | $1,182 |
Ultimately, you don't have control over what insurance companies will charge, but the top advice for obtaining affordable auto insurance is to compare quotes from numerous companies. It can be a challenge to find a rate that provides adequate coverage without breaking the bank. Don't forget to take into account personal factors that may impact your rate, such as relocating, aging, or enhancing your credit score, to ensure that you're not missing out on any potential savings.
It's important to note that some companies may be more expensive than others, so take the time to look around and find the one that suits you best.
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Frequently asked questions
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.