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Rideshare UM/UIM Coverage in California After SB 371

By Aryan Amid

This article is for informational purposes only and is not to be construed as legal advice. No attorney-client relationship exists based on the review of this article and none of the information in this article is legal advice.

Short answer: Effective January 1, 2026, rideshare companies must provide uninsured and underinsured motorist (UM/UIM) coverage of $60,000 per person and $300,000 per incident while a passenger is in the vehicle. The coverage is provided by the rideshare company and is primary. Before January 1, 2026 the statutory amount was $1,000,000. Whether and how it applies to a particular crash depends on the facts. This summary is current as of October 2026.

The change comes from SB 371 (Cabaldon, Statutes of 2025, chapter 314), which the Governor signed on October 3, 2025. It amended California Public Utilities Code section 5433. It changed UM/UIM coverage only. It also added a study and reporting requirements.

How California rideshare insurance is organized

The California Public Utilities Commission (CPUC) describes rideshare insurance in three periods. The amounts below are statutory requirements as of October 2026, drawn from Public Utilities Code section 5433. They are not a promise about what coverage applies to any particular crash.

  • Period 1 (app open, waiting for a match): liability insurance of at least $50,000 per person and $100,000 per incident for death and personal injury, and $30,000 for property damage, plus at least $200,000 per occurrence in excess coverage. Section 5433 requires no UM/UIM coverage in this period.
  • Period 2 (match accepted, passenger not yet picked up): liability insurance of $1,000,000 for death, personal injury and property damage. Section 5433 requires no UM/UIM coverage in this period.
  • Period 3 (passenger in the vehicle): liability insurance of $1,000,000 for death, personal injury and property damage, plus UM/UIM coverage of $60,000 per person and $300,000 per incident from the moment the passenger enters until the passenger exits.

In plain terms, California requires primary rideshare insurance of $1,000,000 for death, personal injury and property damage from the time a driver accepts a ride request until the ride is complete (Pub. Util. Code section 5433(b)(1)). While a driver is logged in but has not accepted a ride, it requires at least $50,000 per person, $100,000 per incident and $30,000 for property damage, plus at least $200,000 per occurrence in excess coverage (section 5433(c)).

What changed on January 1, 2026

SB 371 changed one coverage number: the required UM/UIM amount for rideshare passenger trips.

  • Before January 1, 2026: the statute required UM/UIM coverage in a single amount of $1,000,000, from the moment a passenger entered the vehicle until the passenger exited.
  • Effective January 1, 2026: the statute requires UM/UIM coverage of $60,000 per person and $300,000 per incident over the same passenger-in-the-vehicle window. The coverage is provided by the rideshare company, is primary over other applicable UM/UIM coverage, and is solely the rideshare company’s obligation.

SB 371 did not change the $1,000,000 liability requirement, the Period 1 amounts, or the excess coverage amount. Those were already in the statute before 2026. SB 371 also added a study of the UM/UIM requirement (Public Utilities Code section 918.3) and CPUC reporting requirements (section 5436).

Uninsured and underinsured motorist coverage matters when the driver who caused a crash has no insurance or not enough. It is one possible source of recovery for a passenger, and the required amount is a statutory requirement, not a measure of what any injury is worth.

SB 371 and AB 1340

SB 371 was enacted with AB 1340, a separate law that gives California rideshare drivers a process to organize and bargain collectively while remaining independent contractors. SB 371 was written to become operative only if AB 1340 was enacted and took effect by January 1, 2026. AB 1340 (Statutes of 2025, chapter 335) was signed October 3, 2025 and took effect January 1, 2026. The Governor’s office said more than 800,000 rideshare drivers would have that option (Oct. 3, 2025).

What the required amount does and does not mean

The required UM/UIM amount is not a ceiling on every possible source of recovery. Depending on the facts, other sources can include the at-fault driver’s liability coverage, your own insurance, and other liable parties. The statute also states that it does not limit a rideshare company’s liability arising out of an automobile accident involving a participating driver, in an action for damages, for an amount above the required insurance coverage (section 5433(f)). How any of this applies to a particular crash depends on the facts and the policies involved.

The $1,000,000 liability requirement is separate from UM/UIM coverage, and SB 371 did not change it. Whether either one applies to a particular crash depends on the facts.

Uninsured drivers in California

The Insurance Research Council estimated that about 20.4% of California drivers were uninsured in 2023, based on the ratio of uninsured-motorist claims to bodily-injury claims. It is an estimate and does not predict what will happen on any trip. See the Insurance Information Institute’s table of the Insurance Research Council data in the sources below.

Proposition 22 is separate

Proposition 22 (Business and Professions Code section 7455) separately requires app companies to make occupational accident insurance available to drivers for injuries while online. It is a driver benefit, not passenger coverage, and it is not part of SB 371.

Steps to consider after a rideshare accident

  • Get medical care, even if injuries seem minor at first.
  • Take photographs, collect witness information and obtain the police report.
  • Note what the app showed at the time of the crash, such as waiting for a request, en route to a pickup, or a passenger in the vehicle, because the insurance period depends on it.
  • Keep the insurance information, claim numbers and messages you receive.
  • Check with your own insurer about how your policy treats rideshare trips.
  • Before you accept an insurance company’s first offer, consider talking with a lawyer about the options in your situation.

How LA Law Group can help

LA Law Group, APLC is based in Chatsworth and serves clients throughout California. If you were injured in an Uber or Lyft crash, we can review your situation, explain which coverage may be involved based on the facts, and discuss options for seeking compensation for your losses. It is worth asking how fees and case costs work and getting the terms in writing. You can reach us at (866) 625-2529.

Sources

Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. No attorney-client relationship is created by reading it. For advice about your situation, please contact LA Law Group at (866) 625-2529.

Frequently asked

What did SB 371 change about California rideshare insurance?

SB 371 changed the required uninsured and underinsured motorist (UM/UIM) coverage for rideshare passenger trips. Effective January 1, 2026, the required amount is $60,000 per person and $300,000 per incident while a passenger is in the vehicle. Before that date the statutory amount was a single figure of $1,000,000. SB 371 did not change the $1,000,000 liability requirement.

When does the $60,000 and $300,000 UM/UIM coverage apply?

California Public Utilities Code section 5433 requires it from the moment a passenger enters the vehicle of a participating driver until the passenger exits. It is provided by the rideshare company and is primary over other applicable UM/UIM coverage. Whether it applies to a particular crash depends on the facts.

How much liability insurance does California require for Uber and Lyft?

As of October 2026, section 5433 requires primary insurance of $1,000,000 for death, personal injury and property damage from the time a driver accepts a ride request until the ride is complete. While a driver is logged in but has not accepted a request, it requires at least $50,000 per person and $100,000 per incident for death and personal injury, $30,000 for property damage, plus at least $200,000 per occurrence in excess coverage.

Is the $60,000 figure the most a rideshare passenger can ever receive?

Not necessarily. The $60,000 per person and $300,000 per incident figures are the required UM/UIM amounts for passenger trips. Other sources can exist, such as the at-fault driver's liability coverage, your own policies, and other liable parties, depending on the facts. The statute also says it does not limit a rideshare company's liability above the required coverage in an action for damages.

Do other laws affect rideshare drivers and passengers?

Yes. SB 371 was enacted with AB 1340, a separate law that gives California rideshare drivers a process to organize and bargain collectively while remaining independent contractors. Proposition 22 separately addresses driver benefits such as occupational accident insurance. Neither is passenger insurance.

What should I do after a rideshare accident?

Get medical care, document the scene and the trip status in the app, and keep the insurance information and records you receive. Check with your own insurer about how your policy treats rideshare trips. It is worth asking how fees and case costs work and getting the terms in writing.

Attorney Advertising. This article is general information, not legal advice, and does not create an attorney-client relationship. Prior results do not guarantee a similar outcome.