By Ben Marmont, Fairmont Law Firm
Last updated: September 27, 2026
California’s new SB 371 matters to every Uber and Lyft passenger injured in a California crash involving an uninsured or underinsured driver. Starting January 1, 2026, rideshare passenger UM/UIM coverage dropped from $1 million to $60,000 per person and $300,000 per accident. If you were hurt, you can still pursue compensation through the rideshare company’s liability coverage when its driver caused the crash, the at-fault driver’s policy, available UM/UIM coverage, and any other insurance that applies.
You were riding in an Uber or Lyft. Another driver crashed into you.
Now you're facing medical bills, lost wages, and pain you never asked for.
Here's what you need to know: California just changed the rules. And not in your favor.
What Senate Bill 371 Means for Rideshare Passengers
On January 1, 2026, California enacted Senate Bill 371. The change appears in Public Utilities Code section 5433. This law drastically cut the insurance protection available to injured rideshare passengers when they need uninsured or underinsured motorist benefits.
Before this date, Uber and Lyft carried $1 million in uninsured/underinsured motorist coverage for every ride. That older requirement came from California’s prior rideshare framework and protected you when the other driver had no insurance or not enough insurance to cover your damages.
Now? That coverage dropped to just $60,000 per person or $300,000 per accident for passengers from the time a passenger enters the vehicle until the passenger exits under PUC section 5433.
That's a 70% reduction in protection based on the drop from $1,000,000 to $300,000 per-accident UM/UIM coverage for rideshare passengers. California’s general UM/UIM rules still matter too. See Insurance Code section 11580.2, which governs uninsured and underinsured motorist coverage in California policies.
When Does the New Law Apply to Your Case?
Timing matters here. A lot.
If your accident happened before January 1, 2026: You're still covered under the old $1 million standard. The higher protection applies to your claim.
If your accident happened on or after January 1, 2026: The new reduced limits apply. You only have access to $60,000 per person or $300,000 total per accident.
The date of your collision determines which insurance rules apply. Not the date you file your claim. Not the date you hire an attorney.
The collision date is everything.
You also need to move before the legal deadline expires. In most California injury cases, Code of Civil Procedure section 335.1 gives you two years to file suit for injuries caused by another party’s wrongful act or neglect. Miss that deadline and your case can be blocked, no matter how strong it is.
How Rideshare Insurance Coverage Actually Works
Understanding who pays what makes a massive difference in your case.
What if the Uber or Lyft driver caused the accident?
You're protected by the rideshare company's third-party liability policy. This coverage remains at $1 million under Public Utilities Code section 5433. SB 371 didn't touch this protection.
You can pursue a claim against the rideshare company's insurance for your injuries, medical expenses, lost income, and pain and suffering.
What if another driver hit you while you were a rideshare passenger?
This is where SB 371 creates serious problems.
If the at-fault driver has no insurance or insufficient insurance, you turn to the rideshare company's uninsured/underinsured motorist (UM/UIM) coverage. California’s broader UM/UIM rules also appear in Insurance Code section 11580.2.
Under the new law, you're capped at $60,000 per person or $300,000 per incident.
And here's the devastating part: If multiple passengers were injured in the same accident, you're all sharing that $300,000 cap. Your individual recovery could be far less than $60,000.
California also requires drivers to carry proof of financial responsibility. The current compulsory minimum limits are listed in Vehicle Code section 16056 and on the California DMV’s insurance requirements page. For most policies issued or renewed on or after January 1, 2025, those minimums are $30,000 for injury to one person, $60,000 for injury to more than one person, and $15,000 for property damage. Those minimums show exactly why serious rideshare injuries can outgrow available coverage so fast.
The Real Financial Impact on Serious Injuries
Let's talk numbers. Real numbers.
A traumatic brain injury can cost $85,000 to $3 million in medical care alone. Spinal cord injuries? The first year averages over $1 million.
Broken bones requiring surgery run $30,000 to $100,000. Physical therapy costs add up fast: often $150 to $400 per session.
Then there's lost income while you recover. Pain and suffering. Future medical needs.
Under the old law, that $1 million coverage typically allowed full recovery for catastrophic injuries. You could get compensated for everything you lost.
Under SB 371, you're facing a $60,000 ceiling when the other driver has no insurance. Your six-figure medical bills? You're on the hook for most of them.
The gap is even more dangerous because uninsured driving is still a real problem nationwide. The National Highway Traffic Safety Administration tracks motor vehicle insurance data in the United States. When an uninsured or underinsured driver causes a crash, reduced rideshare UM/UIM limits hit injured passengers hardest.
Why Are These Coverage Gaps So Dangerous?
The reduced coverage creates three major problems for injured passengers:
First: Insufficient compensation for serious injuries. The gap between your actual damages and the available coverage can be enormous. You're left paying medical bills you never should have faced.
Second: Limited recovery options. When the available insurance falls short, your legal options narrow significantly. You may need to pursue the at-fault driver's personal assets: if they have any.
Third: Pressure to settle for less. Insurance companies know about these new limits. They'll use them as leverage to push you toward accepting inadequate settlements.
California’s own official sources show how thin the base layer can be. The DMV says drivers must carry proof of financial responsibility, but the legal minimums under Vehicle Code section 16056 are still far below the cost of major trauma. That leaves injured rideshare passengers exposed when another driver causes the crash and lacks enough coverage.
Why You Need an Attorney Who Knows the New Rules
SB 371 completely changed how we evaluate and pursue rideshare accident claims.
We fight to maximize every dollar available under the new limits. We explore every possible avenue for compensation: the at-fault driver's insurance, the rideshare company's coverage, your own insurance policies.
We negotiate aggressively because we know insurance companies will try to minimize what they pay under the reduced coverage.
At Fairmont Law Firm, we've recovered compensation for countless accident victims across California. We understand exactly how SB 371 impacts your case and what strategies work under the new law.
And here's our promise: You pay zero fees unless we win. Not a dollar out of pocket. We only get paid when you get paid.
We serve injured people across all 58 California counties. We offer Free Case Evaluation, we're Available 24/7, we deliver Fast & Aggressive Representation, we've recovered Millions Recovered for clients, and we provide Bilingual Support / Se Habla Español.
Critical Steps to Take After a Rideshare Accident
You need to act fast to protect your rights.
☑ Get medical attention immediately. Your health comes first. Plus, documented medical treatment strengthens your claim.
☑ Document everything. Take photos of the accident scene, your injuries, and any vehicle damage. Get contact information from witnesses. Save all medical records and bills.
☑ Report the accident. Notify both the rideshare company and local police. Get a copy of the police report.
☑ Don't give recorded statements. Insurance adjusters will try to get you on record early. Anything you say can be twisted against you later.
☑ Contact a personal injury lawyer in California before talking to insurance companies. We handle all communication so you can focus on healing.
The insurance company is not on your side. They're looking for ways to pay you less. You need someone fighting for you.
How Fairmont Law Firm Fights for Rideshare Accident Victims
We know what you're going through. We've helped hundreds of California residents recover from devastating accidents.
We provide aggressive representation. We don't back down from insurance companies or their lawyers. We fight for every dollar you deserve.
We're available 24/7. Accidents don't happen on a schedule. When you need us, we're here. Day or night.
We handle everything. You don't deal with insurance adjusters, paperwork, or legal deadlines. We take that burden off your shoulders.
Our team has recovered millions in compensation for injured clients. We've built our reputation on results, not promises.
And remember: Zero fees until we win. You risk nothing by calling us.
If you need a personal injury lawyer California residents trust after an Uber or Lyft crash, we are ready to fight now. We help rideshare passengers statewide, from Los Angeles and San Diego to Sacramento, the Bay Area, and every community in between.
Don't Let the New Law Leave You Unprotected
SB 371 cut your insurance protection by 70%. But that doesn't mean you're out of options.
The right car accident lawyer in California can make all the difference between getting stuck with massive bills or recovering fair compensation.
Every day you wait gives insurance companies more time to build their defense. Evidence disappears. Witnesses forget details. Your claim gets weaker.
We offer a completely free case evaluation. No obligation. No pressure.
We'll review your accident, explain your rights under the new law, and map out the best strategy for your situation.
Contact Fairmont Law Firm today. Let us fight for the compensation you deserve while you focus on recovery.
The insurance companies have lawyers working for them from day one. Shouldn't you?
Call us now at Fairmont Law Firm or visit our website for your free consultation. We're ready to fight for you: 24/7, 365 days a year.
You didn't ask for this accident. You shouldn't have to face it alone.
Authoritative Sources You Can Check Right Now
If you want the primary law and official background, start here:
- SB 371 bill text and amendments on California Legislative Information
- California Public Utilities Code section 5433
- California Insurance Code section 11580.2
- California Code of Civil Procedure section 335.1
- California Vehicle Code section 16056
- California DMV auto insurance requirements
- NHTSA motor vehicle insurance report
Frequently Asked Questions
Does SB 371 affect every Uber or Lyft crash claim?
No. SB 371 changes the UM/UIM coverage available when another driver caused the crash and that driver had no insurance or not enough insurance. If the Uber or Lyft driver caused the crash, the rideshare company’s $1 million liability coverage still matters.
What if my crash happened before January 1, 2026?
The collision date controls. If your crash happened before January 1, 2026, the old $1 million rideshare UM/UIM standard applies.
Can I still recover compensation after January 1, 2026?
Yes. You can still pursue the at-fault driver’s insurance, the rideshare company’s coverage when its driver caused the crash, available UM/UIM benefits, and other policies that may apply.
How long do I have to file a California injury lawsuit?
In most cases, Code of Civil Procedure section 335.1 gives you two years to file. Fast action protects evidence and protects your claim.
Disclaimer
This article is for general information only. It is not legal advice and does not create an attorney-client relationship. Every rideshare accident claim turns on its own facts, insurance coverage, and deadlines. For advice about your case, contact Fairmont Law Firm for a free case evaluation.