Nevada Senate Advances Bill to Double Trucking Liability Insurance by 2030

Nevada's Senate has passed Senate Bill 180, proposing to double the minimum liability insurance requirement for large freight trucks operating within the state from the federal standard of $750,000 to $1.5 million by 2030. This increase targets local freight carriers using vehicles over 26,000 pounds, excluding long-haul and out-of-state trucks. The bill reflects concerns that the current limit, unchanged for over 40 years, no longer covers the rising costs of medical care and property damage resulting from serious truck accidents.

Supporters argue the increased coverage will better protect victims of severe crashes and the trucking companies themselves, as expenses from accidents have escalated. Senator Edgar Flores, who introduced the bill, emphasized that inflation and rising claim costs justify the higher limit. Labor groups such as Teamsters Local 631 have endorsed the measure, viewing it as a move toward greater fairness and safety on Nevada roads.

However, the trucking industry and insurers raise concerns about the impact on small businesses, which could face significant premium increases that may not be sustainable. The Nevada Trucking Association warns the bill could force some operators to shut down due to unaffordable insurance costs. Insurance representatives note that securing coverage at the $1.5 million level could be challenging in the current market, potentially requiring multiple policies.

Critics also question the necessity of the increase, citing federal data indicating that severe truck crashes exceeding current liability limits are rare, at about 0.06% of accidents. They suggest that focusing on legal reforms to address Nevada's high volume of civil lawsuits might better protect both businesses and the public without inflating insurance costs. Opponents note that Nevada would become a regulatory outlier, as only New Jersey has similar insurance requirements.

The bill's passage in the Senate was narrow, reflecting deep division. Opposing votes were cast by all Republicans and two Democrats, with skepticism about whether the legislation enhances public safety or primarily benefits legal interests by raising potential lawsuit targets. Bill 180 now proceeds to the Nevada Assembly for further consideration, where it is anticipated to undergo extensive debate regarding its economic and regulatory implications for the state's trucking sector.