SB 371 Explained: Rideshare Insurance & Your Rights
California has recently enacted Senate Bill 371 (SB 371) — a major change to how rideshare insurance coverage works in the state. This law took effect January 1, 2026 and is now beginning to roll out as part of the state’s broader effort to make rideshare services like Uber and Lyft more affordable while balancing protections for drivers and passengers.
- SB 371 lowers Uber and Lyft insurance coverage in California as of January 1, 2026.
- Reduced coverage may limit compensation after serious rideshare accidents.
- An experienced attorney can help protect your rights under the new law.
What Is SB 371?
SB 371 fundamentally revises minimum insurance requirements for transportation network companies (TNCs), the legal name for services like Uber and Lyft in California. Under previous law, rideshare drivers and companies had to carry $1 million in uninsured and underinsured motorist coverage from the moment a ride began until it ended.
Under the new law, that requirement is adjusted to:
- $60,000 per person in uninsured/underinsured motorist coverage
- $300,000 per accident total coverage
In addition, TNCs are now responsible for maintaining this coverage, rather than relying on individual drivers to secure it.
Why Did California Pass SB 371?
Lawmakers, rideshare companies, and worker groups negotiated SB 371 as part of a broader legislative package (paired with AB 1340) designed to:
- Lower the cost of rideshare services for everyday Californians
- Reduce burdensome insurance mandates that have inflated fares
- Empower rideshare drivers with additional options for advocacy and negotiation
Governor Newsom and bill sponsors have noted that the old insurance mandates were established more than a decade ago when the rideshare industry was new, and that real-world claims data now show those requirements are higher than necessary.
Impact on Riders
A key goal of SB 371 is to reduce fare costs for passengers. Rideshare companies and some lawmakers argue that excess insurance costs have been passed on to riders, increasing the price of everyday trips. For example, some industry estimates suggest that insurance mandates contributed to a disproportionate share of ride costs in California cities.
Impact on Drivers
The bill also ties into changes that give rideshare drivers more voice in their working conditions. Although SB 371 itself focuses on insurance coverage rather than labor rights, it was negotiated alongside AB 1340, which creates a legal framework for driver organization and collective bargaining.
What This Means for Accidents & Legal Claims
While SB 371 may help lower insurance costs and make rideshare trips more affordable, the reduction in coverage levels also raises important questions about compensation after serious accidents:
- Lower uninsured/underinsured coverage means less financial protection for passengers, drivers, pedestrians, and others injured in rideshare-related crashes.
- In high-severity accidents, medical bills, lost income, and long-term care costs can easily exceed $60,000 per person or $300,000 per incident, potentially leaving victims under-covered.
- Making rideshare companies responsible for coverage may simplify claims, but some legal experts express concern about whether protections remain robust enough in worst-case scenarios.
At Cutter Law, we believe it’s crucial for rideshare passengers, drivers, and other road users to understand how SB 371 affects both everyday travel and legal rights after an accident.
Let Cutter Law Help You Protect Your Rights After an Uber or Lyft Accident Today
If you’ve been injured in a rideshare accident as a passenger, a driver, a pedestrian, or a cyclist, the new insurance landscape under SB 371 could influence how your case is evaluated and what compensation you’re entitled to pursue.
Our experienced rideshare accident attorneys can help you, evaluate your insurance coverage options, navigate complex liability laws, maximize compensation for medical bills, lost wages, pain and suffering, and build a strong case tailored to SB 371’s changes. Don’t face the aftermath of an accident alone. Contact Cutter Law today at 888-285-3333 for a free consultation and trusted legal advocacy.
In California, Uber and Lyft drivers must meet licensing, vehicle, and insurance requirements, while Prop 22 classifies them as independent contractors, and victims can seek compensation for accidents or assaults.
California’s comparative negligence law divides the fault and uses that ratio to determine the damages a plaintiff can receive (even if they are more than 50% at fault).
After a car accident in California, you can file a claim by gathering evidence, contacting your insurer, and ensuring all necessary documentation is provided to support your case.