Nevada businesses are grappling with some of the highest auto insurance costs in the nation. According to a LendingTree study, full coverage averages about $335 per month, roughly 61% above the national average. The state experienced premium increases of 13.7% in 2025 and another 6.4% in 2026, affecting more than 500,000 policyholders and driving up operational expenses across key industries.
In 2025, the Nevada Legislature responded by passing AB 523 (effective October 2025). The law lowered the minimum insurance requirement for rideshare and delivery companies from $1.5 million to $1 million per incident and limited vicarious liability for drivers’ actions, providing some stability for transportation network companies (TNCs) operating in the state.
Americans for Tax Reform has released a new report titled “Lawsuit Abuse is Leading to an Affordability Crisis.” The report examines how lawsuit abuse and excessive vicarious liability are major drivers of rising costs for households and businesses alike — particularly in auto insurance and transportation sectors. It specifically recommends extending the Graves Amendment of 2005, which shields rental car companies from vicarious liability for drivers’ negligence, to TNCs such as Uber and Lyft.
Congress is advancing surface transportation reauthorization legislation, with the House Transportation and Infrastructure Committee targeting May 20, 2026, for markup. The bill must pass before current provisions expire on September 30, 2026.
For Nevada businesses, this federal legislation represents a significant opportunity. Extending the Graves Amendment would create a uniform national standard that builds directly on AB 523. This could help reduce litigation risks for rideshare, delivery, and autonomous vehicle operators, stabilize insurance markets, and lower overall premium pressure — benefits that would support Nevada’s tourism industry, gig economy workers, logistics companies, and small businesses that rely heavily on affordable transportation services.
Read the full ATR report here: https://atr.org/wp-content/uploads/2026/04/ATR-Lawsuit-Abuse-is-Leading-to-An-Affordability-Crisis-RS-Edits-1.pdf
