You open your Uber app. You tap "Request Ride." You assume you are safe. For years, California passengers have had a $1 million safety net. If a distracted driver hit your Uber, you were covered. Even if that driver had no insurance, the rideshare company’s $1 million policy stepped in.
But that is about to change.
California has a new law on the books. It is called SB 371. It goes into full effect on January 1, 2026. This law is going to fundamentally change your protection after a crash.
The $1 million figure isn't disappearing entirely. But for many victims, the safety net is being slashed by over 90%. You need to know what this means for you. If you’ve been hurt, you need a personal injury lawyer California trusts to navigate these new rules.
At Fairmont Law Firm, we are already preparing for this shift. We fight for victims across all 58 California counties. We don’t let insurance companies hide behind new legislation.
What Exactly Is SB 371?
SB 371 is a law that redefines rideshare insurance requirements in California. It was heavily debated in Sacramento. It represents a massive win for rideshare giants like Uber and Lyft.
Until now, the law was simple. If you were in a rideshare vehicle and an uninsured driver hit you, you had access to $1 million in Uninsured Motorist (UM) coverage. That covered your medical bills, your lost wages, and your pain and suffering.
Starting in 2026, that $1 million UM/UIM limit is gone.
Instead, the mandatory minimum for Uninsured/Underinsured Motorist coverage will drop to:
- $60,000 per person
- $300,000 per accident
That is a staggering drop. Think about the cost of a hospital stay in Los Angeles or San Francisco. A single surgery can cost $60,000 in the blink of an eye. If you have a serious spinal injury or a brain injury, $60,000 won't even cover your first week of recovery.
We believe this law leaves passengers vulnerable. We are here to make sure you still get every penny you deserve.
The Difference Between Liability and UM/UIM Coverage
It is easy to get confused by legal jargon. We want to keep it simple. There are two main types of coverage in a rideshare accident.
1. Liability Coverage (The $1 Million Stay)
This applies when your Uber or Lyft driver causes the crash. If your driver is speeding, runs a red light, or is distracted by their phone, they are at fault. In this case, the $1 million liability policy still applies. This part of the law has not changed for active trips.
2. UM/UIM Coverage (The Big Cut)
This applies when someone else hits your rideshare vehicle. Maybe it is a hit-and-run driver. Maybe it is a driver with the "California Minimum" policy of $15,000. This is where SB 371 hits you hardest. Uber and Lyft used to provide $1 million to fill that gap. Now, they only have to provide $60,000.
If you are a passenger in a Lyft and a drunk driver slams into you, you better hope that drunk driver has a massive insurance policy. Because Lyft isn't required to provide that $1 million cushion anymore.
The Three Phases of Rideshare Insurance
To understand your rights, you have to know what "Phase" your driver was in. This is how California law determines who pays.
Phase 1: App Off
The driver is using their car for personal business.
- Coverage: Only the driver's personal insurance.
- Our Take: If you’re hit by an Uber driver who is "off the clock," it’s a standard car accident claim.
Phase 2: App On, Waiting for Request
The driver is "available" but hasn't accepted a passenger yet.
- Coverage: Limited contingent liability. Usually $50,000 for injury and $100,000 total.
- Our Take: This is a tricky grey area. You need a car accident lawyer near me who knows how to prove the driver was logged in.
Phase 3: En Route or Passenger Onboard
The driver has accepted a ride or you are in the car.
- Coverage (Pre-2026): $1M Liability / $1M UM/UIM.
- Coverage (2026 Post-SB 371): $1M Liability / $60k UM/UIM.
This is the most dangerous change for riders. You are paying for a premium service. You expect premium protection. SB 371 takes that away.
Why $60,000 Is Not Enough for Serious Injuries
You might think $60,000 sounds like a lot of money. In the world of California medical costs, it is peanuts.
Let's look at the numbers.
- ER Visit & Imaging: $5,000 – $15,000.
- Physical Therapy (6 months): $10,000 – $20,000.
- Spinal Surgery: $50,000 – $150,000.
- Traumatic Brain Injury Care: $100,000+.
If you are hit by an uninsured driver while in an Uber, and you need surgery, you will be "upside down" instantly. The $60,000 won't even cover the surgeon. What about your lost wages? What about the fact that you can’t pick up your kids or go to the gym?
This is why we fight so hard. We don't just look at the insurance policy. We look at every possible source of recovery. We hold the big corporations accountable. We have recovered millions for our clients because we don't take "no" for an answer.
Who Does SB 371 Really Protect?
It’s no secret. Big tech companies spent millions lobbying for this change. They claim it helps "stabilize" the market. We see it differently.
We think it shifts the burden from billion-dollar companies to hardworking Californians.
When a passenger is seriously injured, someone has to pay. If the insurance doesn't cover it, the victim is left with the debt. That is not justice. That is a corporate handout.
As a premier personal injury lawyer California firm, we believe in a level playing field. If you are injured, the person or company responsible should pay. Period.
What You Must Do After a Rideshare Accident
The moments after a crash are chaotic. You are in shock. Your adrenaline is pumping. But the steps you take right now will determine if you get paid or get stuck with the bill.
Follow this checklist immediately:
☑ Call 911. You need a police report. No exceptions.
☑ Screenshot the App. Capture your ride details, the driver’s name, and the "trip in progress" screen.
☑ Take Photos. Get pictures of the cars, the license plates, and the surrounding intersection.
☑ Get Witness Info. If anyone saw the crash, get their name and phone number.
☑ See a Doctor. Even if you feel "fine," many injuries like whiplash or internal bleeding take hours to show up.
☑ Call Fairmont Law Firm. Do not talk to the insurance adjusters alone.
Insurance companies are already training their adjusters to use SB 371 to lower your settlement. They will tell you that the "new limits" mean your case is worth less.
Don't believe them.
We know the law better than they do. We know how to find secondary insurance. We know how to prove liability. We are available 24/7 to take your call.
Your Recovery Options: Step-by-Step
When you hire Fairmont Law Firm, we jump into action. We don't wait for the insurance company to call us. We go to them.
Step 1: The Investigation
We pull the data from the rideshare app. We find out exactly what Phase the driver was in. We check the other driver's history.
Step 2: The Medical Treatment
We help you find the best doctors. You focus on healing. We focus on documenting every dollar spent.
Step 3: The Demand
We send a high-pressure demand to the insurance company. We lay out the facts. We show them the medical bills. We explain the trauma you’ve endured.
Step 4: The Settlement or Suit
Most of our cases settle for maximum value because the insurance companies know we are ready to go to court. We are aggressive. We are fast. We don't stop until you win.
The Fairmont Law Firm Promise: Zero Fee Until We Win
We know you are stressed. You have medical bills piling up. You might be missing work. The last thing you need is another bill.
That’s why we work on a Contingency Fee Basis.
What does that mean for you?
- Zero Out-of-Pocket Costs.
- Free Case Evaluation.
- We only get paid if we win your case.
If we don't recover money for you, you owe us nothing. This allows you to have a powerhouse legal team in your corner without any financial risk.
Serving All 58 Counties in California
Whether you were in a fender bender in San Diego or a catastrophic truck accident in Redding, we are your team. We serve the entire state.
We know the local courts. We know the local traffic patterns. We understand the specific risks of ridesharing in cities like San Francisco, Los Angeles, and Sacramento.
Don't settle for a "general" lawyer. You need a rideshare accident lawyer who understands the nuances of SB 371 and the California Vehicle Code.
Frequently Asked Questions About SB 371
Does this law affect me if my accident happened in 2024?
No. SB 371 applies to accidents occurring on or after January 1, 2026. If you were injured recently, the $1 million UM/UIM limit should still apply. Contact us today for a Free Case Evaluation.
Can I still sue Uber or Lyft directly?
It depends. California law has many protections for Transportation Network Companies (TNCs). However, if their negligence contributed to the crash, such as poor driver vetting, there may be a direct claim.
What if I was the driver and not the passenger?
Drivers are also affected. The reduction in UM/UIM coverage means you are less protected if an uninsured motorist hits you while you’re working. We recommend checking your personal policy for a "Rideshare Endorsement" with high UM/UIM limits.
Is $1 million liability still there?
Yes. If the Uber/Lyft driver causes the accident, the $1 million liability limit remains. The "slashing" only applies to cases where the other driver is at fault and has no insurance.
Don't Face the Insurance Giants Alone
The law is changing. The insurance companies are getting more aggressive. They want to pay you as little as possible.
You need a team that projects strength. You need Fairmont Law Firm.
We have recovered millions for our clients. We offer bilingual support (Se Habla Español). We are available 24/7.
Your life can turn upside down in seconds. A single crash can ruin your finances and your health. But you don't have to carry that weight alone.
We are the protectors. We are the advocates. We are the firm that fights when others fold.
Ready to get the compensation you deserve?
Call Fairmont Law Firm today. It only takes a minute to start your journey toward justice.
[Click here for a FREE Case Evaluation] or call us 24/7.
Remember: ZERO Fee Until We Win.
Author: Ben Marmont
Senior Legal Analyst at Fairmont Law Firm