California Senate Bill 371 changed uninsured and underinsured motorist coverage requirements for transportation network company trips. The bill was approved by the Governor on October 3, 2025 and became operative because AB 1340 was also enacted.
What changed
During the period from passenger entry until passenger exit, the required uninsured and underinsured motorist coverage was reduced from $1 million to:
- $60,000 per person
- $300,000 per incident
The transportation network company is responsible for maintaining this UM/UIM coverage. The law continues to require $1 million in primary liability coverage from acceptance of a ride request until the trip transaction is completed.
Why drivers should pay attention
UM/UIM coverage may apply when another responsible motorist has no insurance or insufficient insurance. A lower limit can materially affect a seriously injured driver or passenger. Drivers should review the actual policy, applicable deductibles, optional personal rideshare endorsements, and the coverage period in which a crash occurred.
What the law does not guarantee
The Legislature stated an intent that insurance savings support drivers and riders, but the law does not guarantee that every saving will appear automatically as higher driver pay or lower passenger fares. Drivers should evaluate actual trip data and company disclosures.
