New California Law Reduces Rideshare Insurance Coverage Starting January 1, 2026
What SB371 Means for Uber, Lyft, and Accident Victims Across California
As of January 1, 2026, major changes to rideshare insurance coverage in California have gone into effect. These changes stem from Senate Bill 371 (SB371)—introduced by State Senator Christopher Cabaldon and signed into law in late 2025. At The Law Offices of Ali Taheripour, we previously reported on the risks this legislation posed to consumers, and now that SB371 is law, it’s essential to understand how these changes could impact injury victims throughout the state.
SB371 Dramatically Reduces Insurance Requirements for Uber and Lyft
Under the previous law, Uber and Lyft drivers in California were required to carry $1 million in uninsured/underinsured motorist (UM/UIM) coverage per incident—a critical safeguard for victims involved in catastrophic rideshare accidents.
Effective January 1, 2026, those minimum requirements have been reduced to $300,000 per incident, or just $60,000 per individual. That’s a 70% cut in coverage, which can significantly impact how much financial compensation a victim is able to recover after a serious injury.
Who Benefits—And Who Loses?
Rideshare companies like Uber argue that SB371 is about reducing operating costs and passing savings on to riders. But many legal experts and consumer advocates see it differently. During Senate hearings, the focus turned to so-called “billboard attorneys”—personal injury lawyers accused of inflating claims.
At the same time, Uber filed a lawsuit against various California attorneys and doctors, alleging inflated medical bills and frivolous claims. Uber has also supported a proposed initiative to cap personal injury attorney fees in accident cases, an effort that many view as an attempt to undermine victims’ rights and limit access to justice.
Meanwhile, critics point out that Uber’s push for lower costs conveniently shields the company from responsibility. From federal class actions over sexual assault allegations to FTC lawsuits for deceptive billing, Uber’s track record raises valid concerns about corporate accountability.
Opposition from Consumer Advocacy Groups
Organizations like the Consumer Attorneys of California (CAOC) have strongly opposed SB371 and Uber’s broader legal strategies. CAOC argues that these changes do not protect consumers—they protect billion-dollar corporations. The group is currently leading a coalition against Uber’s 2026 ballot initiative, which they believe would severely limit victims’ ability to seek fair compensation and force them into lowball settlements.
How SB371 Will Impact California Injury Victims
Now that SB371 is law, victims of rideshare accidents in California may find themselves with fewer legal and financial options. Potential impacts include:
- Reduced compensation for serious injuries
- Higher financial risk for rideshare passengers and third-party motorists
- More difficulty pursuing UM/UIM claims
- Less corporate accountability and greater pressure to settle for less
Victims of catastrophic injuries could now be left without adequate resources to cover medical expenses, lost income, or long-term care needs.
Injured in a Rideshare Accident? Contact a California Rideshare Injury Lawyer
At The Law Offices of Ali Taheripour, we have spent over two decades advocating for the rights of injury victims across California. Our team is well-versed in the ever-changing landscape of rideshare liability, and we are committed to helping victims navigate these new legal challenges.
If you or someone you love has been injured in an Uber, Lyft, or other rideshare accident, don’t wait to explore your options. Even with these recent legal changes, you may still be entitled to compensation—and we’re here to help you fight for what you deserve.