Uber’s reduced insurance coverage
California reduces coverage from $1 million to $60,000 per person
Effective January 1, 2026, there has been a remarkable change in Uber’s insurance coverage for riders and drivers under California’s SB 371 law. The law has reduced the minimum Uninsured/Underinsured Motorist coverage that rideshare carriers, such as Uber, must provide to riders.
If you are involved in a car accident while riding in or driving for Uber, the coverage available under the new law is significantly reduced, which can substantially limit what you can recover from an uninsured or underinsured driver. A reduced amount has been the result of legislation created by compromise with the aim of making transportation more accessible; this, in turn, has created anxiety for those who support safety and those who have been injured in accidents.
What exactly changed with California’s SB 371?
California’s SB 371, signed into law late in 2025 and effective as of January 1, 2026, modifies the state’s Public Utilities Code to change the amount of insurance coverage applicable to Transportation Network Companies (TNCs) like Uber and Lyft. The most significant modification concerns Uninsured/Underinsured Motorist coverage during the “on-trip” stage, when the passenger is in the vehicle.
Previously, rideshare companies had to maintain $1 million in UM/UIM coverage per person (and per accident) in case a crash was caused by an uninsured or underinsured motorist. This would provide victims with a reasonable safety net to cover medical bills, lost wages, and pain and suffering in the event the at-fault party could not pay their damages.
Under the new rules from SB 371, changes include:
- The UM/UIM coverage per person has been decreased to $60,000.
- The per-accident limit has been reduced to $300,000.
This means that there will be a nearly 94 per cent reduction in personal protection. For serious injuries such as spinal injuries, brain injuries, and multiple fractures, medical bills may exceed $60,000. This may require the victim to rely on their own medical insurance and auto insurance for reimbursement.
This law transfers the responsibility for UM/UIM coverage to the TNC (Uber or Lyft) itself, thereby simplifying the compliance process but, in turn, diminishing the layer of protection.
If you have recently found yourself injured from a rideshare accident at the hands of either Lyft or Uber, understanding the changes in SB 371 is crucial to protecting your rights. KAASS LAW helps clients navigate these evolving rules to secure the compensation they deserve. Contact KAASS LAW for a free consultation if you have been affected.
