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- 83rd Session (2025)
Senate Bill No. 194–Senator Scheible
CHAPTER..........
AN ACT relating to motor vehicles; requiring a short-term lessor to
require proof of certain insurance as a condition for the lease
of a passenger car; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
Existing law prohibits a short -term lessor from requiring the purchase of a
waiver of damages, optional insurance o r any other optional good or service as a
condition for the lease of a passenger car. Existing law further prohibits a short -
term lessor from engaging in certain unfair, deceptive or coercive conduct to induce
a short -term lessee to purchase a waiver of damages, optional insurance or any
other optional good or service. (NRS 482.31565) This bill requires a short -term
lessor to require, as a condition for the lease of a passenger car, proof of insurance
that satisfies certain minimum insurance coverage requirements. Additionally, this
bill authorizes a short -term lessor to sell certain temporary policies of insurance or
refer a person to a third -party seller of such insurance. This bill further prohibits a
short-term lessor from offering or referring for sale su ch policies of insurance at a
rate exceeding the standard market rate of similar policies of insurance. Finally, this
bill provides that the sale of such a policy of insurance by a short-term lessor does
not constitute engaging in certain prohibited unfair, deceptive or coercive conduct.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. (Deleted by amendment.)
Sec. 2. NRS 482.31565 is hereby amended to read as follows:
482.31565 1. [A] Except as otherwise provided in
subsection 2, a short-term lessor shall not require the purchase of a
waiver of damages, optional insurance or any other optional good or
service as a condition for the lease of a passenger car.
2. A short-term lessor shal l require that a person seeking to
lease a passenger car provide proof of insurance that satisfies the
minimum amount of insurance coverage set forth in NRS 485.185
as a condition for the lease of the passenger car. If a person
seeking to lease a passenger car cannot provide proof of such
insurance, the short-term lessor may:
(a) Sell the person a temporary policy of insurance that
satisfies the minimum amount of coverage set forth in NRS
485.185 or r efer the person to a third -party that sells a temporary
policy of insurance that satisfies such requirements. A temporary
policy of insurance offered or referred for sale by a short -term
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- 83rd Session (2025)
lessor must be offered at a rate that does not exceed the standard
market rate for similar policies of insurance.
(b) If the person refuses to purchase a temporary policy of
insurance, refuse to lease the passenger car to the person.
3. Except as otherwise provided in this subsection, a short-term
lessor may sell a waiver of damages but shall charge:
(a) Except as otherwise provided in paragraph (b), not more than
$22 per full or partial rental day or 24 -hour rental period, as
appropriate, for the waiver. The amount of the charge set forth in
this paragraph must be adjusted for each fiscal year that begins on or
after July 1, 2008, by adding to that amount the product of that
amount multiplied by the percentage increase in the Consumer Price
Index West Urban for All Urban Consumers (All Items) between the
calendar year en ding on December 31, 2005, and the calendar year
immediately preceding the fiscal year for which the adjustment is
made. The Department shall, on or before March 1 of each year,
publish the adjusted amount for the next fiscal year on its website or
otherwise make that information available to short-term lessors.
(b) If the vehicle has a manufacturer’s suggested retail price of
more than $60,000, not more than $150 per full or partial rental day
or 24 -hour rental period, as appropriate, for the waiver. The
monetary amounts set forth in this paragraph must be adjusted for
each fiscal year that begins on or after July 1, 2021, by adding to
each amount the product of that amount multiplied by the
percentage increase in the Consumer Price Index West Urban for
All Urban Consumers (All Items) between the calendar year ending
on December 31, 2017, and the calendar year immediately
preceding the fiscal year for which the adjustment is made. The
Department shall, on or before March 1 of each year, publish the
adjusted amounts for the next fiscal year on its Internet website or
otherwise make that information available to short-term lessors.
[3.] 4. A short-term lessor who disseminates an advertisement
in the State of Nevada that contains a rate for the lease of a
passenger car shall include in the advertisement a clearly readable
statement of the charge for a waiver of damages and a statement that
the waiver is optional.
[4.] 5. A short -term lessor shall not engage in any unfair,
deceptive or coercive conduct to ind uce a short -term lessee to
purchase a waiver of damages, optional insurance or any other
optional good or service, including, but not limited to, refusing to
honor the lessee’s reservation, limiting the availability of cars,
requiring a deposit or debiting or blocking the lessee’s credit card
account for a sum equivalent to a deposit if the lessee declines to
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- 83rd Session (2025)
purchase a waiver, optional insurance or any other optional good or
service.
6. For the purposes of subsection 5, the sale of a policy of
insurance by a short-term lessor in accordance with the provisions
of subsection 2 does not constitute engaging in any unfair,
deceptive or coercive conduct in violation of subsection 5.
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