SB 371 Timeline: California Rideshare UM/UIM Changes

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: SB 371 changed one rideshare coverage amount in California: the required uninsured and underinsured motorist (UM/UIM) amount. Effective January 1, 2026, rideshare companies must provide 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. This summary is current as of October 2026.

Key dates

• February 2025: SB 371, authored by Senator Cabaldon, was introduced.
• October 3, 2025: SB 371 was signed and chaptered as Statutes of 2025, chapter 314.
• January 1, 2026: SB 371 took effect.

SB 371 amended California Public Utilities Code section 5433.

What SB 371 changed

The only coverage amount SB 371 changed is UM/UIM coverage 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, only while a passenger is in the vehicle. The rideshare company must provide it, it is primary over other applicable UM/UIM coverage, and it is solely the rideshare company’s obligation.

SB 371 also added a study of the UM/UIM requirement (Public Utilities Code section 918.3) and CPUC reporting requirements (section 5436).

Whether and how the UM/UIM coverage applies to a particular crash depends on the facts, including when the crash happened, what the driver was doing in the app and the policies involved.

What SB 371 did not change

SB 371 did not change the liability requirements. As of October 2026, California Public Utilities Code section 5433 requires a rideshare company to maintain 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, the required primary insurance is 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. Which coverage applies to a particular crash depends on the facts and the policies involved.

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).

After a rideshare accident

• Get medical care, even if injuries seem minor at first.
• Document the scene, and 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.
• Keep the insurance information, claim numbers and messages you receive.
• Check with your own insurer about how your policy treats rideshare trips.
• Consider talking with a lawyer before you give a recorded statement or accept an insurance company’s first offer.

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

• SB 371 (2025-26 session, Cabaldon), chaptered text and history: California Legislative Information
• California Public Utilities Code section 5433 (as amended by Stats. 2025, ch. 314, effective January 1, 2026): Justia, section 5433
• AB 1340 (Wicks, Berman), Transportation Network Company Drivers Labor Relations Act: Public Employment Relations Board, TNC Act and California Legislative Information
• Office of Governor Gavin Newsom, October 3, 2025 announcement

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.