If you were injured in a rideshare accident in California during 2026, the insurance landscape looks dramatically different than it did just months 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. 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.
To understand the full scope of this change, it helps to review the text of California’s Transportation Network Company statutes directly. The California Legislative Information portal hosts the full text of SB 371 and its amendments to the Public Utilities Code, which governs TNC insurance requirements statewide.
The 94% Reduction: Breaking Down the Numbers
The raw numbers tell a stark story. A single percentage can feel abstract, but when you translate a 94 percent coverage reduction into real dollars after a catastrophic rideshare accident, the consequences become impossible to ignore.
| Coverage Type | Before SB 371 (Pre-2026) | After SB 371 (2026 and Beyond) | Change |
|---|---|---|---|
| Liability Coverage (driver at fault) | $1,000,000 per incident | $1,000,000 per incident | No change |
| UM/UIM Coverage — Per Person | $1,000,000 | $60,000 | −94% |
| UM/UIM Coverage — Per Accident | $1,000,000 | $300,000 | −70% |
Consider what $60,000 actually covers in a serious injury scenario. According to data from the National Highway Traffic Safety Administration, the economic costs associated with serious injury crashes — including medical care, lost wages, and long-term rehabilitation — routinely reach six figures for a single victim. A spinal injury, traumatic brain injury, or multiple fractures sustained when an uninsured driver runs a red light and strikes your rideshare vehicle could easily generate medical bills that dwarf a $60,000 UM/UIM policy limit. The gap between what victims need and what SB 371 rideshare UM/UIM coverage now provides is not marginal — it is potentially catastrophic.
Liability Coverage vs. UM/UIM Coverage: A Critical Distinction
One of the most common points of confusion after a rideshare accident is understanding which type of insurance applies to a given scenario. This distinction has always been important, but under the new SB 371 rideshare UM/UIM coverage framework, it determines whether a victim has access to $1,000,000 in coverage or just $60,000.
When Liability Coverage Applies
Liability coverage is triggered when the rideshare driver is at fault for causing the accident. If your Uber or Lyft driver runs a stop sign, rear-ends another vehicle, or makes an improper lane change that results in a collision, the rideshare company’s $1,000,000 liability policy is the primary source of compensation for injured passengers and third parties. This $1,000,000 limit was not changed by SB 371 and remains intact in 2026.
When UM/UIM Coverage Applies
Uninsured/underinsured motorist coverage is triggered in a completely different scenario: when a third-party driver — someone other than your rideshare driver — causes the accident and that driver either has no insurance or carries insufficient insurance to cover your damages. Imagine you are a passenger in a Lyft when a hit-and-run driver or an uninsured motorist runs into your vehicle. Your rideshare driver did nothing wrong. The at-fault driver has no insurance. In that scenario, you are now limited to the newly reduced SB 371 rideshare UM/UIM coverage cap of $60,000 per person. This is where the law change cuts deepest.
For a broader understanding of how uninsured motorist coverage works under general principles of insurance law, Cornell Law School’s Legal Information Institute provides a clear foundational explanation that applies to California’s framework.
The Comparative Negligence Factor
California operates under a pure comparative negligence standard, which means that even if an injured victim shares some responsibility for an accident — say, 30 percent — they can still recover the remaining 70 percent of their damages. This legal doctrine remains unchanged by SB 371 and is an important tool for victims who may worry that partial fault eliminates their claim entirely. However, comparative negligence also means that insurance adjusters will aggressively attempt to assign fault percentages to victims in order to reduce payouts, making documentation and legal strategy more important than ever under the new coverage structure.
Alternative Coverage Layers: Finding Recovery Beyond the SB 371 Limits
The reduction in SB 371 rideshare UM/UIM coverage does not mean that $60,000 is the absolute ceiling for every victim’s recovery. Sophisticated claims strategy involves identifying and stacking multiple potential coverage layers. Victims who work with experienced legal counsel often discover that meaningful additional compensation is available through sources that are not immediately obvious.
Excess and Umbrella Policies
Rideshare companies and their insurance partners sometimes carry excess policies that sit above the primary UM/UIM limits. These excess layers can substantially increase available recovery in cases involving severe injuries. One documented example involves a settlement of $841,500 that was recovered in part through an excess policy layer — a result that would have been impossible if the victim’s legal team had stopped investigating coverage at the primary policy limit. Identifying whether an excess policy exists requires direct inquiry and often formal legal discovery.
Personal Auto Insurance UM/UIM Coverage
If you have your own personal auto insurance policy with UM/UIM coverage, that policy may provide an additional recovery layer even when you were riding as a passenger — not driving — in the rideshare vehicle at the time of the accident. California law generally permits UM/UIM coverage to follow the person, not just the vehicle, making your personal policy potentially relevant even in a rideshare context. Using a car accident settlement calculator can help you begin estimating the value of your claim against all applicable coverage layers before you enter negotiations.
Health Insurance and Medical Payments Coverage
Medical payments (MedPay) coverage and health insurance can serve as first-dollar coverage for immediate medical expenses, helping victims access treatment without waiting for liability or UM/UIM claims to resolve. While MedPay and health insurance do not compensate for pain and suffering or lost wages, they preserve your ability to document injuries thoroughly — which is critical to maximizing eventual recovery from UM/UIM and liability sources.
Third-Party Driver’s Own Insurance
Even when a third-party driver is underinsured rather than completely uninsured, their personal auto policy constitutes a primary recovery source before UM/UIM coverage is triggered. California’s UM/UIM system is designed to cover the gap between what the at-fault driver’s insurance pays and the full value of your damages. Carefully sequencing claims against all available policies — the at-fault driver first, then the rideshare company’s UM/UIM coverage, then excess layers, then personal UM/UIM — is the correct strategic approach under the 2026 framework.
How to Preserve Your Rideshare Accident Claim: An Action Roadmap
The reduced SB 371 rideshare UM/UIM coverage limits make evidence preservation more urgent than ever. With less automatic insurance coverage available, building the strongest possible factual record becomes essential to accessing every available dollar of compensation. Here are the steps every rideshare accident victim should take immediately following a crash in 2026.
Step 1: Screenshot Your Active Ride Status
Before anything else — before the app refreshes, before the ride is cancelled, before the driver ends the trip — take a screenshot of your Uber or Lyft app showing the active ride in progress. This single piece of evidence confirms that you were in a covered “Period 3” ride (active trip) at the time of the accident, which determines which insurance tiers apply. The difference between Period 1, Period 2, and Period 3 coverage is significant, and your screenshot provides contemporaneous, timestamped proof of ride status.
Step 2: Call Police and Obtain a Report
A police report is foundational to any rideshare accident claim. It documents the scene, identifies all drivers involved, records insurance information for the third-party driver (critical for UM/UIM claims), and preserves witness statements. Request the report number at the scene and obtain the full written report as soon as it is available from the responding law enforcement agency.
Step 3: Document the Scene Thoroughly
Photograph every vehicle involved from multiple angles, capturing damage, license plates, and vehicle positions relative to traffic signals and lane markings. Photograph your own visible injuries. Record video of the scene, including skid marks, road conditions, and any contributing environmental factors. Gather names and contact information for every witness present. This documentation becomes especially important when a third-party uninsured driver is involved and fault must be proven to trigger SB 371 rideshare UM/UIM coverage.
Step 4: Seek Immediate Medical Attention
Do not delay medical evaluation, even if you feel your injuries are minor. The adrenaline response following a serious accident can mask pain and symptoms for hours or days. Early medical documentation creates a contemporaneous record linking your injuries directly to the accident — a record that insurance adjusters will scrutinize when evaluating UM/UIM claims. If you sustain a traumatic brain injury in a rideshare crash, using a brain injury calculator can help you understand the potential value of that specific injury type before entering settlement discussions.
Step 5: Preserve All Digital Evidence
Request your complete trip records from the rideshare platform immediately. These records include GPS route data, timestamps, driver information, and vehicle details. This information may be difficult or impossible to obtain later without formal legal process. Similarly, preserve any communications — text messages, in-app messages, emails — related to the ride and the accident.
For those comparing the general personal injury claims process to rideshare-specific claims, a personal injury settlement calculator provides useful context for understanding how factors like medical expenses, lost wages, and pain and suffering are typically weighted in settlement valuations across different accident types.
Frequently Asked Questions About SB 371 Rideshare UM/UIM Coverage
Does SB 371 affect liability coverage for rideshare accidents in California?
No. SB 371 did not change rideshare liability coverage. Uber and Lyft are still required to carry $1,000,000 in liability coverage during active ride periods (Period 3) in 2026. The 94 percent reduction applies exclusively to uninsured and underinsured motorist (UM/UIM) coverage, which is triggered when a third-party driver — not the rideshare driver — causes the accident and lacks sufficient insurance. If your rideshare driver was at fault, the $1,000,000 liability limit is your primary source of recovery, and that limit is unchanged.
What is the new UM/UIM coverage limit under SB 371, and when does it apply?
Under SB 371 rideshare UM/UIM coverage rules effective January 1, 2026, the new limits are $60,000 per person and $300,000 per accident. These limits apply specifically during active trip periods (Period 3 — when a passenger is in the vehicle) when a third-party uninsured or underinsured driver causes the crash and the rideshare driver was not at fault. UM/UIM coverage bridges the gap between what the at-fault driver’s insurance pays and the actual value of your damages, up to these new reduced caps.
Can I recover more than $60,000 under SB 371 if my injuries are severe?
Yes, potentially. The $60,000 per-person UM/UIM limit is not the only possible source of recovery. Victims may also access excess or umbrella policies carried by the rideshare company or its insurer, their own personal auto insurance UM/UIM coverage, the at-fault driver’s personal insurance policy (which is exhausted first before UM/UIM coverage triggers), health insurance and MedPay coverage, and in some cases employer or occupational coverage if applicable. Strategic identification and sequencing of all available coverage layers is essential to maximizing recovery beyond the base SB 371 rideshare UM/UIM coverage limits.
Does California’s comparative negligence law still protect me if I was partly at fault in a rideshare accident?
Yes. California’s pure comparative negligence standard allows injured victims to recover compensation proportional to the other party’s fault, even if the victim shares partial responsibility. For example, if you are found 25 percent at fault and your total damages are $200,000, you can still recover $150,000 (75 percent of your damages). This doctrine applies to both liability claims and UM/UIM claims under the SB 371 framework. Insurance adjusters routinely attempt to inflate a victim’s assigned fault percentage to reduce payouts, so thorough evidence documentation is critical to defending your comparative fault position.
What should I do immediately after a rideshare accident involving an uninsured driver in 2026?
Take these steps immediately: (1) Screenshot your active ride status in the Uber or Lyft app before the trip is cancelled or the app refreshes — this proves Period 3 coverage applies; (2) Call police and ensure a report is filed documenting the at-fault driver’s lack of insurance; (3) Photograph and video the scene, all vehicles, all damage, and your injuries; (4) Collect witness contact information; (5) Seek immediate medical evaluation even if symptoms seem minor; (6) Request your trip records from the rideshare platform; and (7) Consult with a rideshare accident attorney promptly, as coverage identification under the new SB 371 rideshare UM/UIM coverage structure requires early investigation to locate excess policy layers and preserve all claims.
This article is provided for general educational purposes only and does not constitute legal advice; consult a licensed California attorney for guidance specific to your situation.
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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.