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I never purchase rental car insurance. I have a rental-car insurance rider on my personal vehicle that costs me about $25 per year, about the cost of one day of insurance from rental car companies. In the past, Nevada rental car companies simply asked me the name of my insurance company and noted it in their records. So I was surprised on my trip in February to be asked for a copy of my insurance for my personal vehicle. Otherwise, I'd be forced to buy the high-priced insurance from the rental car company. They said it was due to a new law. What law is that?
That would be SB 194, which became effective on October 1 of last year.
The new law requires short-term car-rental companies to verify renters carry insurance coverage that meets the state’s minimum liability coverage limits ($25,000 for bodily injury per person, $50,000 per accident, and $20,000 for property damage). Credit cards typically offer only collision/damage coverage and don't satisfy the liability-insurance requirement.
The law aims to reduce uninsured drivers on Nevada roads, prevent uninsured drivers from using rental cars as a substitute for personal vehicle ownership, and guarantee that rental cars are covered by insurance, protecting both the renter and the rental agency.
If the renter can't produce proof, rental agencies either sell the renter temporary insurance, refer them to a third-party, or refuse to turn over the car.
If you have your own personal car insurance, it likely covers you, but you have to prove it. Proof of insurance can be presented as a physical card or in an electronic format on a mobile device.
So if you're planning on renting a car in Las Vegas or Reno, be prepared to show your proof of insurance to the rental agent.