Every day millions of Californians hop into an Uber or Lyft without thinking twice about insurance. For more than a decade, a $1 million policy quietly sat behind every trip. That changed on January 1, 2026. A new law called Senate Bill 371 cut that coverage dramatically in certain situations, and most passengers have no idea.
If you’ve been in a rideshare accident in California this year, the rules you thought applied probably don’t anymore. This guide walks through what SB 371 changed, what it didn’t, and how to protect your claim under the new law.
What SB 371 Actually Changed
Senate Bill 371 was signed into law in late 2025 and took effect on January 1, 2026. It reshaped the minimum insurance requirements for Transportation Network Companies (TNCs), the legal name for Uber, Lyft, and similar services.
The core change is straightforward. Before 2026, TNCs had to carry $1 million in uninsured/underinsured motorist (UM/UIM) coverage per incident any time a passenger was in the vehicle. As of January 1, 2026, that requirement dropped to $60,000 per person and $300,000 per accident. The full text of the bill is available through the California Legislature.
That’s roughly a 94% reduction in coverage for one specific but critical scenario: when an uninsured or underinsured outside driver causes the crash.
What SB 371 Did NOT Change
This is where most online summaries get it wrong. SB 371 did not eliminate rideshare insurance. Several key protections remain fully intact.
The $1 million third-party liability policy still applies when the rideshare driver is at fault. If your Uber driver runs a red light and hits another car, that $1 million policy covers injuries to everyone involved, including you as the passenger.
The three-period insurance structure also remains:
- Period 1 (App Off): The driver’s personal insurance applies. No TNC coverage.
- Period 2 (App On, No Ride Accepted): Limited TNC contingent liability coverage ($50,000 per person / $100,000 per accident bodily injury).
- Period 3 (Ride Accepted or Passenger in Car): Full $1 million TNC liability coverage if the rideshare driver causes the crash. SB 371’s reduced UM/UIM applies here when an outside driver is at fault.
Understanding which period applies at the moment of impact determines which insurance pays. That hasn’t changed under the new law. What changed is how much is available when things go wrong.
Why This Matters for Passengers
Southern California has some of the highest uninsured driver rates in the country. When an uninsured driver causes a crash and your rideshare trip was the one that got hit, the new $60,000 cap can disappear fast.
Consider realistic medical costs after a moderate-to-serious crash:
- Ambulance and ER stabilization: $5,000 to $12,000
- MRI or CT imaging: $3,000 to $7,000
- Orthopedic surgery: $30,000 to $80,000
- Physical therapy for 6 months: $5,000 to $15,000
One surgery can wipe out the entire $60,000 limit before lost wages and pain and suffering are even considered. That’s why the underinsured motorist provision in your own personal auto policy suddenly matters much more than it used to.
The Three-Period Framework Still Governs Liability
California Public Utilities Code governs rideshare insurance, and the three-period structure determines coverage. Here’s how each phase plays out after a rideshare accident in California:
App Off (Period 1): The driver is not working. Only their personal auto insurance applies. Many personal policies exclude commercial driving, so this creates gaps even when the app is closed.
App On, Waiting for a Ride (Period 2): The driver has turned on the app but has not accepted a ride yet. TNC contingent coverage applies at reduced limits ($50K/$100K for bodily injury).
Ride Accepted or Passenger On Board (Period 3): Full TNC liability coverage ($1 million) applies if the driver causes the crash. UM/UIM coverage is now reduced to SB 371’s lower limits if an uninsured outside driver causes the crash.
Preserving evidence that proves which period applied at impact is now more important than ever. The app’s ride status at the moment of the collision can be the difference between full coverage and a $60,000 ceiling.
What to Do After a Rideshare Accident in California
The first 72 hours matter enormously. Follow these steps:
- Screenshot the app. Capture the ride status, driver name, trip time, and pickup/drop-off points immediately. App data can disappear or become hard to access later.
- Call 911 and get a police report. The police report is the official record. Do not skip this even for what feels like a minor crash.
- Get medical care the same day. Delays in treatment are the single most common reason rideshare claims lose value.
- Photograph everything. The rideshare vehicle, the other vehicle, the scene, your injuries, and the intersection or roadway.
- Do not give a recorded statement. Uber, Lyft, and third-party insurers often call within 48 hours. You are not required to give a recorded statement, and doing so almost always hurts your claim.
- Check your own auto policy. Your personal UIM coverage may fill the gap SB 371 created.
Why You May Need Your Own UM/UIM Coverage Now
Before 2026, passengers didn’t need to worry about this. The TNC’s $1 million UM/UIM policy covered almost any scenario. That safety net has shrunk.
Adding or raising the UM/UIM limits on your own auto policy is now one of the most practical steps California residents can take. It’s relatively affordable, and it covers you in multiple situations, not just rideshare trips.
If you don’t own a car, you may still have UM/UIM access through a family member’s policy. Many California insurers extend household coverage to resident relatives. Check before assuming you have no backup.
Common Misconceptions About SB 371
Three myths are circulating widely. Let’s clear them up.
Myth 1: “Uber and Lyft no longer have insurance.” False. The $1 million third-party liability policy during active rides is unchanged. What dropped is UM/UIM only.
Myth 2: “The new law only affects passengers.” False. Rideshare drivers, pedestrians, cyclists, and other motorists can all be affected when the at-fault driver is underinsured.
Myth 3: “You can’t recover anything beyond the new limits.” False. Depending on the facts, you may have claims against the rideshare driver personally, the at-fault driver’s assets, your own UIM policy, and in some cases the TNC directly. A layered approach often recovers more than any single policy.
Filing Deadlines Still Apply
SB 371 did not change the statute of limitations. Under California Code of Civil Procedure § 335.1, you have two years from the date of the accident to file a personal injury lawsuit. Government entity claims (such as a crash involving a city bus or public vehicle) require a six-month notice under the Government Claims Act.
Miss these deadlines and the case almost always dies, regardless of how strong the evidence is.
When to Speak With an Attorney
Not every rideshare case needs a lawyer, but under SB 371 many more do. Consider consulting an attorney when:
- Your medical costs could exceed $60,000
- The at-fault driver was uninsured or underinsured
- There is any dispute about which insurance period applied
- You suffered a traumatic brain injury, spinal injury, or any injury with potential long-term effects
- The insurance company makes a quick, low offer within the first few weeks
A specialized California rideshare injury attorney can analyze all available coverage layers and identify options that a DIY claim will miss.
Final Thoughts
A rideshare accident in California looks simple from the outside and gets complicated fast underneath. SB 371 didn’t eliminate passenger protection, but it did shrink it in one important area. Passengers who once relied on a $1 million safety net now need to think harder about their own coverage and about who actually caused the crash.
Screenshot the app. Get the police report. See a doctor the same day. And don’t trust the first settlement offer. The law is still on your side; it just demands more precision than it used to.