Rideshare Accident Injury Claims After SB 371
California rideshare passengers and other people injured in accidents involving Uber, Lyft, and other transportation network companies may encounter a different insurance landscape under Senate Bill 371. The law, which took effect January 1, 2026, reduced the amount of uninsured motorist and underinsured motorist coverage that transportation network companies must provide when a passenger is in a rideshare vehicle. Importantly, however, SB 371 did not reduce the $1 million liability coverage that applies when a rideshare driver causes an accident during an accepted trip.
For rideshare accident victims in California, that distinction matters. The available insurance may depend not only on whether the injured person was a passenger, driver, pedestrian, or occupant of another vehicle, but also on whether the rideshare driver caused the collision or another driver did. The Uber & Lyft accident attorneys at Kalfayan Merjanian, LLP, help injured people get the compensation they need and deserve after a serious rideshare accident.
What Did SB 371 Change?
Before SB 371, California law required transportation network companies, or TNCs, to provide $1 million in uninsured motorist (UM) and underinsured motorist (UIM) coverage for a rideshare passenger from the time the passenger entered the vehicle until the passenger exited. That coverage was designed to apply when an accident was caused by a driver who either had no insurance or did not have enough insurance to fully compensate the injured passenger.
SB 371 reduced that required UM/UIM coverage to:
- $60,000 per person; and
- $300,000 per accident.
The law also shifted responsibility for providing this passenger UM/UIM coverage entirely to the transportation network company. Under the new law, the TNC’s UM/UIM policy is primary over other applicable UM/UIM coverage.
The change applies to coverage from the moment a passenger enters the TNC vehicle until the passenger exits. SB 371 also requires the California Public Utilities Commission and California Department of Insurance to study the effects of the new UM/UIM requirements and report their findings to the Legislature by December 31, 2030.
SB 371 was approved by Governor Gavin Newsom on October 3, 2025, and became operative January 1, 2026, contingent upon the enactment of AB 1340, a law giving Uber and Lyft drivers the right to unionize and bargain collectively.
What Did SB 371 Not Change?
The most important point for accident victims is that SB 371 did not reduce the $1 million liability insurance requirement for accidents caused by a rideshare driver during an accepted trip.
Once a TNC driver accepts a ride request, TNC insurance must provide at least $1 million in liability coverage for death, personal injury, and property damage. That requirement remains in place until the driver completes the transaction or the ride is otherwise completed, whichever is later.
This means SB 371 did not change the basic insurance protection available to a passenger who is injured because the Uber or Lyft driver caused the collision. It changed the separate protection available when another motorist is responsible, and that motorist lacks sufficient insurance.
The distinction is important because UM/UIM coverage and liability coverage address different circumstances.
What If the Rideshare Driver Caused the Accident?
Consider a passenger riding in an Uber or Lyft when the rideshare driver runs a red light and crashes into another vehicle. If the rideshare driver’s negligence caused the accident, the passenger’s claim falls under the TNC’s $1 million liability coverage rather than the new $60,000-per-person UM/UIM requirement. During an accepted trip, the applicable TNC liability coverage remains $1 million for death, personal injury, and property damage.
The same $1 million coverage requirement can be important to people outside the rideshare vehicle. For example, if a rideshare driver causes a collision that injures someone driving another car, a passenger in another vehicle, or potentially a pedestrian, the fact that the driver was working for a TNC does not automatically reduce the TNC liability limit to $60,000.
The critical questions include whether the driver caused the accident and what stage of the rideshare trip the driver was in when the collision occurred.
What If Another Driver Caused the Accident?
The situation changes when the rideshare driver was not responsible for causing the crash.
Suppose an Uber passenger is injured when another motorist runs a red light and hits the Uber vehicle. If the other motorist has adequate liability insurance, the injured passenger may pursue compensation under that driver’s liability policy, subject to the applicable policy limits and the facts of the claim.
But what happens when the other driver has no insurance or does not have enough insurance to cover the passenger’s losses?
That is where the SB 371 change becomes significant. The required TNC UM/UIM coverage for the passenger is now $60,000 per person and $300,000 per accident, rather than the previous $1 million requirement. The TNC’s coverage is primary over other applicable UM/UIM coverage under the statute.
For someone suffering substantial medical expenses, lost income, permanent disability, or other serious damages, the difference between a $60,000 per-person limit and a $1 million limit can be substantial.
The reduction does not necessarily mean that $60,000 is the maximum amount an injured person could ever recover from all sources. Other potentially applicable insurance coverage, liability claims, and the particular facts of the accident must be examined. But SB 371 does significantly reduce the amount of TNC UM/UIM coverage that California requires in this situation.
What If the Other Driver Is Underinsured?
An underinsured motorist may have insurance, but the available liability limits may be insufficient to compensate an injured person for the full extent of the damages.
For example, imagine that a rideshare passenger suffers $200,000 in damages after a collision caused by another driver whose insurance policy has only $30,000 in applicable liability coverage. Depending on the circumstances and applicable coverage, UIM insurance may provide an additional source of compensation, doubling what the crash victim can recover. The actual amount potentially available in a particular claim depends on the policies involved, the damages, applicable legal rules, and other circumstances.
This is one reason determining all potentially applicable insurance policies is important after a rideshare collision.
What If the Rideshare Driver Was Waiting for a Ride Request?
Rideshare insurance also depends on what the driver was doing when the accident occurred.
SB 371 did not eliminate the separate insurance requirements that apply while a TNC driver is logged into the platform but has not yet accepted a passenger request. During that period, TNC insurance must provide at least $50,000 for death and personal injury per person, $100,000 for death and personal injury per incident, and $30,000 for property damage. The law also requires $200,000 in excess coverage per occurrence for liability exceeding those required limits.
The rules are therefore different depending on whether the driver is merely available for a ride, has accepted a request, or is transporting a passenger.
For an injured person, determining the driver’s status in the rideshare application at the precise time of the collision can be an important part of identifying the applicable coverage.
What If the Rideshare Driver Is the Person Who Was Injured?
SB 371 primarily changed the required UM/UIM protection for passengers. It should not be read as creating $60,000 of UM/UIM coverage for every person involved in a rideshare accident.
The statute specifically requires the TNC to provide $60,000 per person and $300,000 per incident in UM/UIM coverage from the time a passenger enters the participating driver’s vehicle until the passenger exits.
A rideshare driver who is injured by an uninsured or underinsured motorist may therefore have a different insurance situation, particularly if the driver was not transporting a passenger at the time. The driver’s personal automobile policy, any rideshare-specific coverage, TNC coverage, and other potentially applicable insurance policies may all need to be examined.
California’s Department of Insurance has also historically cautioned that TNC insurance does not necessarily provide every type of coverage for a rideshare driver, including UM/UIM coverage for injuries to the driver.
Why the Cause of the Accident Matters
For rideshare accident victims, the question of “Who caused the accident?” can have a direct effect on which insurance coverage becomes relevant.
If the rideshare driver caused the accident during an accepted passenger trip, the $1 million TNC liability requirement remains in place. If another driver caused the accident and that driver is uninsured or underinsured, the passenger’s required TNC UM/UIM protection is now $60,000 per person and $300,000 per accident.
If the rideshare driver was logged into the application but had not accepted a ride, different liability coverage requirements apply. And if the injured person is the rideshare driver rather than a passenger, the analysis can be different again.
Consequently, simply knowing that an accident involved Uber or Lyft is not enough to determine the available insurance coverage. The circumstances surrounding the collision, the driver’s status on the platform, who was at fault, the identity and insurance status of the other drivers, and the injured person’s role in the accident can all matter.
What Does SB 371 Mean for Rideshare Accident Victims?
SB 371 created an important distinction in California rideshare accident claims. The law left the $1 million TNC liability requirement intact for accidents caused by a rideshare driver during an accepted trip, while reducing the required TNC UM/UIM coverage for passengers injured by uninsured or underinsured motorists.
That means the effect of the law depends heavily on the circumstances of the accident. A passenger injured because an Uber or Lyft driver caused the crash may still have access to the same $1 million TNC liability limit that existed before SB 371. A passenger injured by an uninsured or underinsured third-party driver, however, may now be dealing with substantially lower required TNC UM/UIM limits.
After a serious rideshare accident, identifying the responsible parties and all potentially applicable insurance policies can be critical. Kalfayan Merjanian, LLP represents people injured in motor vehicle and rideshare accidents and can evaluate the circumstances of a collision, investigate the available insurance coverage, and pursue compensation for qualifying injuries and losses. Contact Kalfayan Merjanian, LLP to discuss your rideshare accident and your legal options.
