Nevada trucking bill doubles liability minimum to $1.5 million

Critics warn of fallout

Nevada trucking bill doubles liability minimum to $1.5 million

Motor & Fleet

By Camille Joyce Lisay

Legislation doubling the minimum liability insurance requirement for certain motor carriers from the federally mandated $750,000 to $1.5 million has been passed by the Nevada Senate through Senate Bill 180.

The move has been criticized by industry groups, who say the bill could severely strain small trucking businesses and insurance availability in the state.

The proposed law would apply to intrastate freight carriers hauling loads over 26,000 pounds, including common and contract carriers regulated by the Nevada Transportation Authority and the Department of Motor Vehicles. Opponents, including the Nevada Trucking Association and the American Property Casualty Insurance Association (APCIA), argue the bill could lead to higher premiums, reduced competition, and difficulty securing insurance coverage.

“In practice, SB 180 would require truckers to get two separate policies to get to $1.5 million,” said Mark Sektnan, APCIA vice president of state government relations for the western region. “This could be especially difficult for trucking, where insurers and reinsurers have become cautious due to the rise in large claims over the past two decades.”

Sektnan also noted that federal data shows just 0.06% of trucking accidents result in damages exceeding the current $750,000 threshold, questioning the necessity of the proposed increase.

Nevada Trucking Association CEO Paul Enos echoed concerns about affordability, warning that small operators already facing high insurance costs may be forced out of business. “Small Nevada businesses — already stretched thin — will either absorb crippling costs or leave the industry altogether, reducing competition and raising prices for consumers,” Enos said.

Enos pointed to one former member who closed operations after a 30% insurance hike for 2024 and 2025, illustrating the bill’s potential real-world consequences. Instead of raising liability limits, Enos urged lawmakers to pursue tort reform, citing Nevada’s high rate of civil litigation—180,274 civil cases in 2023 compared to Utah’s 81,086 and Nebraska’s 62,106.

As other states like Georgia pass laws to curb legal system abuses and nuclear verdicts, Nevada’s proposal has put a spotlight on the broader tension between improving road safety and maintaining a viable insurance market.

The top five writers of commercial auto liability insurance in Nevada by 2023 direct premiums written were Progressive (19.59%), Travelers (6.23%), Farmers (5.4%), Berkshire Hathaway (4.81%), and Zurich Insurance (4.58%).

How should lawmakers balance safety with insurance affordability? Share your thoughts below.

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