SB 371 Explained: Rideshare Insurance & Your Rights
If you’re hurt in an Uber or Lyft crash in California, the insurance available to cover your losses changed on January 1, 2026. That’s when Senate Bill 371 (SB 371) took effect, lowering the coverage rideshare companies must carry for uninsured and underinsured drivers. For anyone pursuing a rideshare accident claim, that change can directly affect how much compensation is realistically available.
The law is part of the state’s broader effort to make rideshare services more affordable while balancing protections for drivers and passengers. Here’s what it changes and what it means for your rights.
- 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, SB 371’s lower coverage limits can affect how your claim is valued and where your compensation comes from. In a serious crash, the rideshare company’s policy may be only one source of recovery, alongside your own insurance and claims against any other at-fault driver.
Our rideshare accident attorneys can review every policy that applies to your crash, sort out who is liable, and pursue compensation for your medical bills, lost wages, and pain and suffering. With offices in Sacramento, Oakland, and Santa Rosa, Cutter Law represents rideshare accident victims throughout Northern California.
Call Cutter Law Today
Call 888-285-3333 or contact us online for a free case review.
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.