Big changes are coming for Uber and Lyft passengers in California, and they could affect your safety and financial protection. Senate Bill 371 (SB 371) significantly decreases the insurance coverage rideshare companies must carry, reducing how much injured riders can recover after a crash. If you use rideshare apps often, now is the time to understand what this means for you.
Breaking Down California’s SB 371: The New Rideshare Insurance Law
California regulates rideshare companies, known as Transportation Network Companies (TNCs) such as Uber and Lyft, through the Public Utilities Commission. Until now, these companies have been required to carry $1 million in uninsured and underinsured motorist (UM/UIM) coverage whenever a passenger is in the vehicle.
Starting in 2025, that protection will drop significantly. Senate Bill 371 (SB 371) lowers the minimum required UM/UIM coverage to $60,000 per person and $300,000 per incident. The rideshare company, not the driver, will now be primarily responsible for maintaining this coverage, unless the driver chooses to carry their own policy. The state will also review how these reduced limits affect passengers and drivers by 2030.
Here’s how the coverage compares:
| Coverage Type | Before SB 371 | After SB 371 (Starting 2025) |
|---|---|---|
| UM/UIM Coverage Limits | $1,000,000 per incident | $60,000 per person / $300,000 per crash |
| Who Maintains Coverage | Rideshare company or driver | Rideshare company only |
| Passenger Protection Level | High — typically enough to cover serious injuries | Much lower — may not cover full medical costs |
| State Oversight | None required | State agencies will review the impact by 2030 |
What SB 371 Means for Uber and Lyft Riders and Drivers
SB 371 affects everyone who uses or drives for a rideshare company in California. Whether you’re a frequent passenger, a part-time driver, or someone who shares the road with these vehicles, the new law changes how insurance works after a crash.
Here’s how SB 371 affects each group on the road:
- Passengers: Now have less insurance protection if they’re injured during a rideshare trip.
- Rideshare Drivers: Still covered under company policies, but those policies now offer much lower limits than before.
- Other Drivers: May face more complicated claims when a rideshare vehicle is involved in an accident.
For years, rideshare passengers and drivers could rely on a $1 million policy to cover serious injuries, surgeries, or lost income. Under SB 371, that protection drops to $60,000 per person, an amount that can be used up after a single hospital stay.
Because of these reduced limits, both passengers and drivers may need to depend more on their own uninsured and underinsured motorist (UM/UIM) coverage to recover the full cost of their injuries and losses.
How UM/UIM Coverage Protects You After a Rideshare Accident
Uninsured and underinsured motorist (UM/UIM) coverage protects you when another driver doesn’t have enough insurance, or none at all.
Because California’s new rideshare law lowers the coverage Uber and Lyft must provide, passengers and drivers now face a higher risk of uncovered expenses after a serious crash.
Having your own UM/UIM coverage can bridge that gap and help pay for:
- Medical treatment and hospital bills
- Rehabilitation or long-term care
- Lost income if you’re unable to work
- Pain and suffering from the physical and emotional impact of the crash
This coverage ensures you’re not left paying out of pocket when a rideshare company’s limited insurance isn’t enough to cover the full cost of your injuries.
What a Rideshare Accident Might Look Like Under the New Law
These new insurance limits can make a real difference after a rideshare crash. Here are a few common situations where the lower coverage may affect passengers and drivers alike:
- Passenger hit by an uninsured driver: You’re riding in an Uber when another car runs a red light and causes a crash. If that driver has no insurance, the new $60,000 rideshare policy may not cover all your medical bills.
- Hit-and-run accident: A Lyft driver is struck by a driver who flees the scene. With reduced UM coverage, both the driver and passenger could face out-of-pocket costs once policy limits are reached.
- Injury while entering or exiting a rideshare vehicle: Accidents don’t always happen while the car is moving. If you’re hurt while getting in or out of the vehicle, the same limited policy applies.
- Multi-vehicle pileups: When several people are injured in the same crash, the $300,000 per-incident limit can be used up quickly, leaving less compensation for each person.
Injured in an Uber or Lyft Accident?
Smart Ways to Protect Yourself Under California’s New Rideshare Law
Now that rideshare coverage limits are lower, take a few steps to make sure you’re protected before an accident happens:
- Review your auto policy. Confirm that you have UM/UIM coverage.
- Raise your limits. A small premium increase can provide much greater protection.
- Ask your agent. Make sure your policy applies when you’re a rideshare passenger.
SB 371 may lower protection levels, but it also highlights how important it is to understand your own insurance. Whether you’re a driver or passenger, reviewing your policy and speaking with a rideshare accident attorney can make the difference between a quick recovery and overwhelming bills.
Fighting for the Compensation You Deserve After a Rideshare Crash
Dealing with a rideshare accident can be stressful, especially with California’s new insurance rules. A rideshare accident attorney can guide you through the process, protect your rights, and fight for the full compensation you deserve.
At El Dabe Ritter Trial Lawyers, our team has over 60 years of combined experience handling car and rideshare accident claims across California. We’ve recovered millions of dollars for injured clients and know how to handle the unique challenges that come with Uber and Lyft crashes.
Here’s how we can help:
- Investigate the accident and identify all responsible parties.
- Review insurance coverage from Uber, Lyft, and your personal policy to find every source of compensation.
- Handle all communication with insurance companies so you can focus on recovery.
- Negotiate aggressively for a fair settlement or take your case to court if needed.
We work on a no-win, no-fee basis, with offices in Los Angeles and Orange County, and offer bilingual support in English and Spanish. Our goal is simple: to make sure you’re treated fairly and fully compensated after a rideshare accident.
Don’t Wait — Find Out How SB 371 Affects Your Claim
With SB 371 lowering rideshare insurance limits, every claim now matters more than ever. If you’ve been injured while riding in or driving for Uber or Lyft, the coverage that once protected you may not be enough. Don’t wait until the insurance companies decide what your case is worth; let our attorneys fight for you.
At El Dabe Ritter Trial Lawyers, we’ve spent decades standing up to big insurers and protecting injured Californians. Our team understands how these new laws affect your recovery and knows what it takes to win.
Schedule your free consultation today — you pay nothing unless we win your case.
SHERIF EDMOND EL DABE
Founder / Partner / Attorney
Sherif Edmond El Dabe, founding partner of El Dabe Ritter Trial Lawyers in Los Angeles and Huntington Beach, is a seasoned trial attorney focused on catastrophic injury, wrongful death, and insurance bad faith cases. He has recovered over $224 million for clients and spoken at leading legal conferences, including CAALA and TBI Med Legal.
Disclaimer: The information provided in this blog post is not intended as legal advice and should not be relied upon as such. You should consult with an experienced attorney for advice on your specific situation.