On October 3, 2025, Governor Newsom signed a bill that quietly cut a major piece of rideshare insurance protection for millions of California riders and drivers. It didn’t get nearly the media attention that Proposition 22 did, but if you use Uber or Lyft in California, it directly affects what happens if you’re hurt by an uninsured driver. Here’s what actually happened, sourced from the bill itself and Uber’s own public statement on it.
What SB 371 actually did
Senate Bill 371, authored by Senator Christopher Cabaldon, amends California’s Public Utilities Code to overhaul insurance requirements for transportation network companies (TNCs) like Uber and Lyft. It was signed October 3, 2025 and took effect January 1, 2026.
The headline change: uninsured/underinsured motorist (UM/UIM) coverage on rideshare trips — the coverage that responds when the other driver in a crash has little or no insurance of their own — was reduced from $1,000,000 per person to $60,000 per person and $300,000 per accident. That’s roughly a 94% cut to per-person UM/UIM protection. Uber has confirmed the change in its own newsroom statement on California insurance reform, describing it as part of an effort to reduce costs across the rideshare system.
What SB 371 did not change
This is the part that causes the most confusion, so it’s worth being precise: the $1,000,000 liability policy — the coverage that pays out when your Uber or Lyft driver is the one at fault for the crash — was not reduced. It remains at $1,000,000 during an active trip. SB 371 only touched the UM/UIM piece, which covers a different scenario: you’re riding in an Uber or Lyft, and a completely separate, uninsured or underinsured driver hits you. Before 2026, that scenario was covered up to $1,000,000. Now it’s covered up to $60,000 per person.
The bill also shifted responsibility for UM/UIM coverage more directly onto the TNCs themselves and requires them to report accident and UM/UIM claims data to the Public Utilities Commission by February 1, 2026, which should make the real-world impact of this change measurable over time.
Why this matters more than it sounds like it should
California has one of the highest rates of uninsured drivers in the country, and rideshare passengers and drivers don’t get to choose who else is on the road. A 94% reduction in the coverage meant to protect you from an uninsured driver is a meaningful gap, particularly for serious injuries — spinal injuries, traumatic brain injuries, or wrongful death claims can easily exceed $60,000 in damages, let alone what’s left after multiple people share a $300,000 per-accident cap.
This changes the calculation for what other coverage might need to fill the gap: your own personal UM/UIM policy (if you have one and it doesn’t exclude rideshare situations), MedPay or health insurance, or pursuing the underinsured driver directly, even if they have limited assets. It’s exactly the kind of situation where knowing every applicable policy — not just the obvious one — determines whether an injury is fully compensated or not.
What you can do proactively, before an accident happens
If you regularly ride or drive for Uber or Lyft in California, it’s worth checking your own personal auto policy for UM/UIM coverage and whether it excludes rideshare situations — some insurers offer riders that specifically preserve coverage during rideshare trips. Frequent riders who don’t own a car can sometimes still purchase a standalone or “named non-owner” policy with UM/UIM coverage. None of this is required, and most people never think about it until after a crash, but given how far SB 371 reduced the built-in safety net, a personal policy with solid UM/UIM limits is now doing more work than it used to.
If you were hit by an uninsured driver during a rideshare trip
Whether your accident happened before or after January 1, 2026 matters for which limits apply to your claim. If it happened on or after that date, understanding the reduced $60,000/$300,000 UM/UIM limits — and identifying every other policy that might apply — is critical to getting fully compensated. See our full rideshare insurance coverage breakdown for how this fits with the rest of Uber’s and Lyft’s coverage structure, or get a free case evaluation to find out what applies to your specific accident.
This article summarizes a 2025 California law and its 2026 effective changes based on the bill text and public statements available as of publication. It is general information, not legal advice for your specific situation.