If you were injured in a rideshare accident in California during 2026, the insurance landscape looks dramatically different than it did just a year ago. A sweeping legislative change — California Senate Bill 371 — took effect on January 1, 2026, and quietly gutted one of the most critical insurance protections available to rideshare passengers and drivers. Specifically, the law restructured SB 371 rideshare UM/UIM coverage in a way that leaves injured victims holding far less financial protection when an uninsured or underinsured driver causes the crash. And the legal battles did not stop there: a months-long war between Uber and California trial lawyers over competing ballot initiatives — one that saw Uber and the Consumer Attorneys of California collectively commit more than $150 million to those campaigns — ended in a landmark compromise — Senate Bill 623, signed June 25, 2026 — that introduces its own set of new rules for how medical damages are calculated in rideshare cases. Understanding exactly what changed, why it matters, and what you can do to protect yourself is no longer optional — it is essential.
What Is California SB 371 and Why Does It Matter in 2026?
Senate Bill 371 was authored by Senator Christopher Cabaldon, signed into law on October 3, 2025, and became effective January 1, 2026. The bill fundamentally restructured the insurance obligations that transportation network companies (TNCs) like Uber and Lyft must carry for uninsured and underinsured motorist coverage. While the legislation was framed as a regulatory update, the practical impact on injury victims is enormous.
Before SB 371, California required rideshare companies to carry $1,000,000 in uninsured/underinsured motorist (UM/UIM) coverage during active ride periods — the same $1 million figure that applied to liability coverage. That parity gave passengers and drivers a robust safety net when a third-party uninsured driver caused an accident. SB 371 broke that parity completely. The law slashed SB 371 rideshare UM/UIM coverage from $1,000,000 down to just $60,000 per person and $300,000 per accident — a reduction of approximately 94 percent.
The timing could not be worse for California riders. According to the Insurance Research Council’s 2025 report covering 2023 data, 20.4% of California drivers — approximately 1 in 5 — were uninsured, making California one of the highest-risk states in the nation for encounters with uninsured motorists. When you factor in underinsured drivers, the exposure is even greater: nationally, 1 in 3 drivers (33.4%) was either uninsured or underinsured in 2023, a 10 percentage point increase from 2017. Adding to these concerns, the 2026 Rideshare Accident Statistics Report found that an increase in rideshare trips is linked to a 4.6% increase in injury crashes — meaning more rides on the road translates directly to more people at risk. SB 371’s coverage cut arrives precisely as both the uninsured driver problem and rideshare-related crash rates are worsening. Notably, California has committed to reviewing how SB 371’s reduced UM/UIM limits are affecting passengers and drivers by 2030, but that review offers little immediate relief to victims injured today.
Jennifer Torres is a Rideshare Accident Claims Researcher with extensive knowledge of personal injury law and settlement values across the United States. With years of experience analyzing rideshare accident claims only (high value) cases, Jennifer helps injury victims understand their legal rights and the potential value of their claims. Jennifer is not an attorney and the information provided is for educational purposes only.