Nevada AB 523 Changed Who Pays When You Are Hurt in an Uber or Lyft Crash -- What Injured Riders Need to Know

Nevada's Assembly Bill 523 -- operative since October 2025 -- reshaped how liability works after rideshare accidents. The law lowered the required insurance coverage cap, narrowed when you can sue Uber or Lyft directly, and left a significant uninsured motorist gap that many passengers still do not know about. If you were injured in a rideshare accident in Nevada, the legal landscape is different from what most riders assume.

What AB 523 Changed About Rideshare Liability in Nevada

Before October 1, 2025, Nevada's transportation network company (TNC) regulations required Uber, Lyft, and similar companies to carry $1.5 million in commercial liability coverage during Period 2 (driver en route to pick up a passenger) and Period 3 (passenger in the vehicle). AB 523 amended Nevada Revised Statutes Chapter 706A and reduced that required coverage to $1 million per incident. For serious injury cases -- spinal cord damage, traumatic brain injuries, permanent disability -- the difference between a $1 million cap and a $1.5 million cap can be material to what a full recovery requires.

The law also reinforced the independent contractor classification for rideshare drivers. Nevada courts had already recognized drivers as independent contractors rather than employees in most contexts, but AB 523 codified provisions that make vicarious liability claims against the TNC companies more difficult to sustain. To hold Uber or Lyft directly responsible rather than the individual driver, the injured party generally needs to show that the company retained significant control over how the driver performed the specific task that caused the harm -- a higher bar than the general respondeat superior standard that would apply to a traditional employer-employee relationship.

For injured passengers, this structural shift means the most accessible insurance coverage is the company's $1 million policy during active trips, supplemented in many cases only by the injured person's own coverage. Understanding what insurance is available at each stage of a rideshare trip -- and what the gaps are -- is essential to knowing where a claim can actually go.

The UM/UIM Gap and Why It Catches Injured Passengers Off Guard

One of the most consequential features of Nevada's rideshare insurance framework is what it does not require. Nevada law mandates that standard personal auto insurance policies include uninsured motorist and underinsured motorist coverage unless explicitly rejected by the policyholder. But Nevada's TNC statutes do not impose that same UM/UIM requirement on the rideshare company's commercial policy. Uber and Lyft are not legally required to provide UM/UIM protection for passengers through their own policies.

What this means in practice: if you are a passenger in an Uber and a third-party driver runs a red light and hits the vehicle, injuring you, and that third-party driver either has no insurance or not enough coverage to pay for your medical expenses, the Uber commercial policy may not cover the gap through UM/UIM. You would need to look to your own personal auto insurance policy for that coverage -- assuming you rejected the UM/UIM waiver when you purchased it, which many people do not recall whether they did.

This gap is not theoretical. In Clark County and throughout Nevada, underinsured drivers are common, and the costs of serious injuries routinely exceed what a minimally insured at-fault driver can pay. Understanding your own personal auto policy's UM/UIM coverage before you ever step into a rideshare is one of the most practical forms of accident preparation for Nevada residents.

What to Do After a Nevada Rideshare Accident: Documentation, Reporting, and Legal Deadlines

The steps you take immediately after a rideshare accident can significantly affect your ability to recover compensation. The ride-sharing application creates a time-stamped record of your trip status at the moment of the crash, which is critical evidence for establishing which insurance period was active. Do not close or delete the app. Screenshot the trip record, including the driver's name, vehicle information, and the trip start time. Seek medical care even if you feel fine -- many significant injuries, including concussions and soft tissue damage, do not produce acute symptoms at the scene.

Report the accident through the rideshare app as soon as possible. Uber and Lyft both have in-app reporting features for incidents. This creates a record in the company's system and starts the process of identifying which policies apply. You should also file a police report and exchange information with all parties, including the rideshare driver and any other drivers involved.

The two-year statute of limitations in Nevada applies from the date of the accident. This is a hard deadline -- missing it forfeits your right to bring a claim regardless of how serious your injuries are. If the government or a government-operated vehicle is involved in any way, a notice of claim may need to be filed within 90 days. An attorney familiar with Nevada rideshare accident law can evaluate which insurance layers apply to your specific situation and whether the facts support a claim against the TNC itself. Litigators for Justice offers free consultations for Nevada personal injury cases.

6 Things Nevada Rideshare Passengers Should Know Before Filing a Claim

The rideshare insurance framework is counterintuitive, and the rules that apply to your claim depend on facts that most passengers do not think to document. These are the most important things to know.

1. Which period was active determines which policy applies: If the driver was waiting for a ride request, a smaller TNC policy applies. If you were in the vehicle as a passenger, the $1 million commercial policy is in play. The app records this automatically -- do not delete it.
2. You can be in the vehicle and still be partially at fault: Nevada's comparative negligence rule allows the at-fault driver's insurer to argue that your conduct contributed to the crash. Any percentage of fault assigned to you reduces your recovery proportionally.
3. The rideshare company is not automatically liable for the driver's conduct: AB 523 made it harder to hold Uber or Lyft directly responsible. The default claim is against the driver and the TNC's commercial policy -- not the company as an employer.
4. Your own UM/UIM coverage is the most important backup layer: If the at-fault driver is underinsured and the TNC policy does not provide UM/UIM, your personal auto policy is where additional coverage comes from. Verify your own limits before you need them.
5. Medical documentation should start at the scene: Refuse transport at the scene only if you are certain you have no injuries. Many serious injuries are not immediately symptomatic. An ER visit creates a medical record that ties your injuries to the crash date.
6. Verbal statements to the rideshare company can be used against you: Uber and Lyft have claims adjusters who may contact you quickly. You are not required to give a recorded statement to their representatives. Speaking with an attorney first protects your ability to accurately describe the claim.

Frequently asked questions

Can I sue Uber or Lyft directly if their driver injured me?

Nevada AB 523 made direct claims against TNCs more difficult by reinforcing the independent contractor classification. You can still sue the company if you can show it retained significant control over the conduct that caused the harm, or under specific statutory exceptions. Most rideshare injury claims proceed against the driver and the TNC's commercial insurance policy rather than the company itself.

What if I was injured as a pedestrian hit by an Uber driver?

Pedestrians hit by a rideshare vehicle during an active trip are covered by the same $1 million commercial policy as passengers, as long as Period 2 or Period 3 was active when the collision occurred. If the driver was offline or between rides, the driver's personal insurance is the primary source.

How long do I have to file a rideshare accident claim in Nevada?

The standard personal injury statute of limitations in Nevada is two years from the date of the accident. However, if any government entity or government vehicle is involved -- including metro police or public transit -- a notice of claim may need to be filed within 90 days. Consult an attorney promptly after any serious rideshare accident to protect all applicable deadlines.