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Senate committee recommends SB 1 to clarify rental-car insurer verification after industry warns of liability and cost impacts

November 14, 2025 | 2025 Legislature NV, Nevada


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Senate committee recommends SB 1 to clarify rental-car insurer verification after industry warns of liability and cost impacts
Warren Hardy, representing Enterprise Mobility, told the Nevada Senate Public Safety Committee that Senate Bill 1 is a cleanup meant to preserve the optional nature of an insurance-verification process in the short-term lessor statute. Hardy said risk managers read the current statutory language as creating a mandatory obligation to verify proof of insurance for renters, an obligation that "we have no way to do" and that is "not logistically possible" for rental-car companies to meet.

Hardy described the change as restoring the intent represented during the regular session: "we believed we were passing in the last session, which is an optional process for companies that wanted to avail them, of that process." He warned that under the stricter reading, some renters could be forced to purchase additional coverage; "That will, in some cases, double the cost of a car rental in Nevada," he said.

Charley de la Paz, counsel for a sponsor, and industry witnesses including Andy McCam, executive director of the Franchise Auto Dealers Association, and Nick Schneider, director of government affairs for the Vegas Chamber, testified they supported the cleanup and that it would preserve flexibility for smaller franchisees without impairing current practices used by larger operators.

After no callers testified and no in-person opposition was recorded, Senator Ellison moved that the committee recommend a "do pass" on SB 1; Senator Orenshall seconded the motion and the committee voted unanimously to recommend do pass. Chair Scheibel assigned the floor statement for SB 1 to Senator Orenshall.

The committee action sends SB 1 forward with unanimous committee support; supporters described the measure as a narrow clarification that restores industry-understood practice while warning of potential consumer cost increases if the stricter interpretation stood.

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