The arrival of transportation network companies (TNCs) like Uber revolutionized the face of personal transport, even in Nevada. Uber, in contrast to the conventional taxi operators and hire carriers, operates a new kind of business model where independent contractors (drivers) and passengers are brought together through an online platform. This innovation, as much as it is set to revolutionize the business, needs a certain regulatory control in a bid to offer public safety, financial sobriety, and justice.
In Nevada, Uber’s third-party insurance requirements are primarily governed by Nevada Revised Statutes (NRS) Chapter 706A, and supplemented by additional provisions in NRS Chapter 706 (Motor Carriers) and NRS Chapter 690B (Insurance). Uber’s mandated insurance under Nevada law is discussed herein against the backdrop of requirements for taxi operators and common carriers and uninsured/underinsured motorist (UM/UIM) coverage.
Uber as a Transportation Network Company Under Nevada Law
According to NRS 706A.050, a TNC is “an entity that uses a digital network or software application service to connect a passenger to a driver…who can provide transportation services.” Under Nevada law, TNCs are not common carriers, unlike traditional common carriers or taxicab operators, which affects their insurance coverage. This classification is reflective of the business model for Uber, where drivers use their own vehicles and are independent contractors, rather than employees, a distinction from the tightly regulated taxi industry.
NRS 706A does not require Uber to seek a certificate of public convenience and necessity, which the common carriers are required to seek under NRS 706.386. Uber is also not subject to the same regulatory requirements that taxi businesses are through NRS 706.8827. Instead, Nevada law places unique insurance requirements on TNCs as a means of balancing innovation and public interest through offering financial responsibility at various points in their business.
Uber’s Third-Party Insurance Requirements Under NRS 690B.470
NRS 690B.470 is the primary statute setting Nevada insurance requirements for Uber, mandating TNCs to maintain continuous insurance coverage during the period in which a driver is logged into the TNC’s network and available to pick up passengers or otherwise provide transportation services. The statute splits Uber’s business into two material phases, each phase with its own insurance requirements:
- Phase 1: Logged In but Not Providing Transportation Services
As long as an Uber driver is logged into the company’s app and is ready to pick up a ride request but has not yet taken one, NRS 690B.470(1)(b) mandates Uber to maintain liability insurance of at least $50,000 for each person for bodily injury or death, $100,000 per accident for bodily injury or death, and $25,000 for property damage. This coverage is contingent liability, bridging the gap between the driver’s own automobile insurance coverage where such is lacking or insufficient.
- Phases 2 and 3: Providing Transportation Services
After a driver has accepted a ride request (Phase 2) or is in the process of driving a passenger to a destination (Phase 3), NRS 690B.470(1)(a) requires Uber to provide much more coverage: at least $1,500,000 of bodily injury, death, or damage to property per occurrence. This provides strong protection to drivers, motorists, and pedestrians who might be injured by the conduct of an Uber driver while in transit.
Uber accomplishes this through possessing an insurance business policy. As per Uber’s official insurance documents, the company provides $50,000/$100,000/$25,000 of liability coverage during Phase 1 and $1,000,000 of liability coverage during Phases 2 and 3, with additional coverage to satisfy Nevada’s $1.5 million requirement. Importantly, Uber’s policy is primary during these time periods, meaning it is given priority over the driver’s personal policy, minimizing any gaps in coverage that would leave victims uncompensated.
Comparison to Common Carrier Insurance Requirements Under NRS Chapter 706
Common carriers, as defined in NRS 706.036, are entities that provide passenger or property transport services for hire, either on fixed routes or on demand. This includes services such as buses but excludes TNCs like Uber, which operate differently. NRS 706.291 mandates that common carriers maintain liability insurance as prescribed by the Nevada Transportation Authority (NTA), which, in conjunction with the Department of Motor Vehicles (DMV), sets specific limits and coverage types through regulation.
While the particular minimums of coverage may fluctuate according to NTA guidelines, common carriers generally have higher minimum requirements than TNCs during off-peak hours, based on their considerable public service function. For instance, public carriers are mandated to maintain ongoing coverage with their certificate of public convenience and necessity, which is more than the $50,000/$100,000/$25,000 requirements Uber will have during Phase 1. However, where there is active transportation (like Uber’s Phases 2 and 3), $1.5 million coverage in NRS 690B.470 equates to TNCs with common carrier levels of coverage, with the same protection afforded to passengers.
Taxi Operators’ Insurance Requirements Under NRS Chapter 706
Nevada taxicab operators, as “taxicab motor carriers” under NRS 706.126, are governed by a more traditional regime. They are subject to the licensure and insurance regime of the Nevada Taxicab Authority, particularly in those counties with a population over 700,000, such as Clark County (Las Vegas). Cab drivers are required under NRS 706.8828 to have liability insurance with a minimum coverage limit set by the Taxicab Authority. Those limits are normally higher than for private drivers, and cab companies usually have policies with a minimum limit of $100,000 or more per incident.
Compared to Uber, cab companies are obligated to maintain continuous coverage under their certificate of public convenience and necessity, so their insurance obligations are higher off-peak. Yet, Uber’s demand for $1.5 million protection while in service surpasses the standard taxi insurance protection while transporting, highlighting the rideshare culture’s focus on ensuring safety while transporting passengers.
Uninsured/Underinsured Motorist (UM/UIM) Coverage: Requirements and Implications
UM/UIM coverage insures a driver if he or she is physically harmed by an uninsured motorist or by a motorist with inadequate insurance to cover damages. Nevada UM/UIM coverage is governed by NRS 690B.020 and NRS 687B.145, which partially overlap with the insurance mandates for TNCs, common carriers, and taxi operators.
- General UM/UIM Requirements
Under NRS 690B.020, insurers are required to offer UM/UIM coverage to all policyholders at limits identical to their bodily injury liability coverage. Insurers are required to extend this coverage to the policy limit in fault crashes when this coverage is rejected. - UM/UIM for Uber Drivers and Passengers
Although Uber no longer offers UM/UIM coverage for TNC driving, the company formerly provided $1 million of UM/UIM coverage. Since Nevada law doesn’t mandate this coverage for TNCs, Uber’s policy only covers liability coverage, with UM/UIM protection being the responsibility of the driver’s or passenger’s personal insurance. This gap leaves Uber drivers and passengers vulnerable, making it essential to consult with rideshare accident lawyers for protection and recovery options, particularly in a state with such a high rate of uninsured drivers. - UM/UIM for Common Carriers and Taxi Operators
Common carriers and taxi companies are not generally required to provide UM/UIM coverage under NRS 706.291 or NRS 706.8828, but it is generally included in their commercial policies. This provides greater protection for the passengers compared to Uber, where the liability remains with the driver or passenger themselves.
Practical Implications and Gaps in Coverage
Nevada’s multi-layer insurance system for Uber is a good balance of innovation and public protection. While Uber’s $1.5 million coverage when on duty is more than that of the average taxi company, the lack of mandatory UM/UIM coverage creates an enormous gap, especially with Nevada’s high percentage of uninsured drivers (an Insurance Research Council 2023 report estimates 10-12% of Nevadans are uninsured). The gap is also further aggravated by coverage in circumstances other than TNC use under personal insurance, whereby the Uber driver is exposed in Phase 1 if the personal insurer does not provide coverage.
Conclusion
Uber’s Nevada law requirement for third-party insurance offers very broad coverage during active service with a minimum $50,000/$100,000/$25,000 liability limit for Phases 1 and $1.5 million for Phases 2 and 3. The absence of mandatory UM/UIM coverage is a significant deficiency compared to the coverage offered by taxi companies and common carriers. Drivers and riders for Uber also need to purchase additional UM/UIM policies, particularly with regard to Nevada’s high number of uninsured motorists on the road.
Endnotes:
- Nevada Revised Statutes, Chapter 706A, Section 706A.050 (defining TNCs).↩
- Nevada Revised Statutes, Chapter 690B, Section 690B.470 (TNC insurance requirements).↩
- Nevada Revised Statutes, Chapter 706, Section 706.036 (defining common carriers).↩
- Nevada Revised Statutes, Chapter 706, Section 706.291 (common carrier insurance).↩
- Nevada Revised Statutes, Chapter 706, Section 706.8828 (taxi operator insurance).↩
- Nevada Revised Statutes, Chapter 690B, Section 690B.020 (UM/UIM offer requirement).↩
- Nevada Revised Statutes, Chapter 687B, Section 687B.145 (stacking provisions).↩
- Nevada Revised Statutes, Chapter 485, Section 485.185 (minimum liability limits).↩
Uber, “Insurance,” https://www.uber.com/drive/insurance/ (accessed April 7, 2025).↩