LAS VEGAS (KLAS) — An attempt to increase the amount of insurance rideshare companies like Uber and Lyft are required to have for their drivers, failed in the Nevada legislature Thursday.
SB 125 did not have enough votes to pass the Committee on Revenue and Economic Development during its work session Thursday in Carson City. It initially faced confusion when introduced in March about its language not being defined enough.
Currently, Nevada law requires these companies to cover $50,000 when the driver is working as a driver but has not yet picked up a passenger.
Matthew Sharp with Nevada Justice Association, which helped write the bill, told the committee at the time that amount was not enough in case of catastrophic accidents.
“It’s just simply a form of responsibility,” Sharp told the committee in March. “Once I accept the ride, my private insurance company no longer covers me. There’s an exclusion in your own personal auto policy that you’re not covered for for-hire driving.”
Harry Heartfield, public affairs manager for Uber in Nevada, called the bill unprecedented.
“This does not exist anywhere else in the entire country,” Heartfield said during a virtual interview Thursday morning. “Every time you’re on a trip with Uber or Lyft, you have $1.5 million in auto liability coverage, which is 30 times what every other car on the road has.”
But, he acknowledged if passed, the increased operational cost would likely trickle down to the passengers.
“As costs increase, we do our best to absorb as many costs as we can. But, we’re still a business. We have to be profitable and make money,” Heartfield said.
It’s unlikely that the bill will make any more moves through the legislature since the deadline to pass out of committee is Friday.
Over 30,000 people drive for these kinds of transportation companies across the state, Nevada Department of Business and Industry Director Terry Reynolds said during the March introduction.