New California Bill Could Slash Insurance for Uber and Lyft: What It Means for Rideshare Accident Victims
California Senate Bill 371 Could Impact Victim Compensation in Rideshare Accidents
On February 13, 2025, California State Senator Christopher Cabaldon introduced Senate Bill 371 (SB371)—a bill that could dramatically alter the legal landscape for rideshare accident victims across California. If passed, SB371 would reduce the minimum required insurance coverage for rideshare companies like Uber and Lyft from $1,000,000 to just $50,000.
At The Law Offices of Ali Taheripour, we are closely monitoring this development, as it could significantly affect the rights and compensation available to Californians injured in Uber or Lyft accidents.
What Is SB371 and Why Does It Matter?
A Drastic Reduction in Liability Coverage
Under current California law, rideshare companies must carry $1 million in liability insurance to cover bodily injuries and damages caused by their drivers. This higher coverage has helped countless victims of rideshare accidents recover fair compensation.
However, SB371 seeks to slash that coverage to just $50,000—a 95% reduction. If signed into law, this change could leave seriously injured passengers, drivers, pedestrians, cyclists, and other victims with little recourse to recover their damages.
How Rideshare Companies Are Framing the Change
Uber has already launched a public relations campaign in support of the bill, claiming that reduced insurance premiums would result in lower ride fares for all Californians. But this overlooks a critical issue: lower insurance coverage means injured victims may not be able to recover the true costs of medical care, lost wages, or pain and suffering.
Is This Really About Fare Reduction—Or Avoiding Accountability?
Interestingly, less than a month after SB371 was passed by the State Senate, Uber filed a lawsuit against certain prominent California personal injury attorneys and doctors. The rideshare giant has accused them of manipulating the system to take advantage of the company’s $1 million policy—a claim that aligns conveniently with arguments in favor of SB371.
Another perspective is that this billion-dollar company is trying to avoid costly, legitimate claims, and is prioritizing profits over the safety of its customers. Uber is currently being sued in a federal class action lawsuit for failing to adequately address hundreds of thousands of sexual assault and misconduct reports—further raising concerns about corporate responsibility.
What SB371 Means for California Accident Victims
If SB371 becomes law, the implications for rideshare accident victims are severe:
- Less compensation available for serious injuries
- Greater financial risk for passengers and third parties
- Increased burden on accident victims to pursue underinsured claims
- Rideshare companies shielded from major liability
For a state as dependent on rideshare services as California, this bill could have far-reaching and damaging consequences.
Injured in a Rideshare Accident? Contact a California Rideshare Injury Lawyer
At The Law Offices of Ali Taheripour, we have more than two decades of experience representing clients injured in accidents throughout California personal injury claims. We are well-versed in the tactics rideshare companies use to limit their liability—and we’re prepared to fight back.
If you or someone you love has been injured in an Uber, Lyft, or other rideshare vehicle, you may be entitled to compensation. Contact our office today for a consultation.