From Assembly Bill 523 to Federal Graves Amendment Legislation: Relief Sought for Nevada Rideshares

Nevada faces some of the highest auto insurance costs in the country. According to a LendingTree study, full coverage averages about $335 per month, roughly 61% above the national average. The state saw premium increases of 13.7% in 2025 and another 6.4% in 2026, impacting over 500,000 policyholders.

In response, the Nevada Legislature took action in 2025 with Assembly Bill 523, a compromise bill between rideshare companies and trial lawyers that passed unanimously in key committees and was signed into law. Effective October 1, 2025, the measure lowers the minimum insurance requirement for transportation network companies (TNCs) like Uber and Lyft, delivery network companies, and monitored autonomous vehicle providers from $1.5 million to $1 million per incident while a driver is providing services. It also limits vicarious liability for TNCs and delivery companies for the acts or omissions of their drivers or passengers, as long as the required insurance is maintained, while keeping companies liable for their own negligence or wrongful conduct. The bill further defines key terms for delivery services and clarifies that these companies do not control, direct, or manage drivers or their personal vehicles.

While Nevada has taken important steps at the state level, more reforms are being sought on the federal level. Americans for Tax Reform has released a new report titled “Lawsuit Abuse is Leading to an Affordability Crisis.” The report highlights how lawsuit abuse and vicarious liability drive up costs for American households — especially auto insurance and transportation expenses. It recommends extending the Graves Amendment of 2005 (which protects rental car companies) to TNCs.

Congress is currently working on surface transportation reauthorization legislation. The House Transportation and Infrastructure Committee has targeted May 20, for markup of the bill, which must pass before current provisions expire on September 30.

For Nevada, extending the Graves Amendment federally would build on the state’s recent reforms with AB 523. It would create a uniform national standard for vicarious liability involving transportation network companies.