Assembly Bill 311, introduced by Assemblymember Gregory Hafen, aims to revise insurance regulations for transportation network companies (TNCs) in Nevada. The bill, which was introduced on February 27, imposes new insurance requirements that could potentially increase costs and disrupt the state’s rideshare industry.
According to the bill, TNCs must provide expanded insurance coverage, including medical payments and uninsured motorist coverage. This requirement is expected to increase operational expenses, possibly leading to higher fares for riders and reduced earnings for drivers.
Nevada’s insurance market has already experienced rising costs due to increased litigation and claims. Nevada News and Views reports that excessive legal expenses and insurance requirements are driving up consumer costs, making it more challenging for companies to offer affordable rideshare services.
An Axios report suggests that lawsuit abuse and rising insurance costs are contributing to the increased price of rideshare services. The report states that special interests in some states exploit high insurance limits required for TNCs, resulting in a surge of personal injury lawsuits even when neither Uber nor its drivers are at fault.
The Las Vegas Defense Group indicates that personal injury attorneys in Nevada typically take a 40% share of a client’s financial settlement plus additional court costs. For instance, from a $100,000 settlement, the plaintiff may receive only $60,000 before deducting expenses. These substantial legal fees raise concerns about the limited compensation available to injury victims and the profitability of contingency-based legal practices.
Hafen’s website describes him as a fifth-generation Nevadan who is a small business owner and general manager of Pahrump Utility Company Inc. He has served three terms in Assembly District 36 and holds key roles on legislative committees while chairing the Desert View Hospital Board.
