If you’ve ever taken an Uber and assumed there was a million-dollar safety net behind you in case something went wrong, that assumption is no longer valid in California. As of January 1, 2026, the state quietly changed the rules on how much Uninsured/Underinsured Motorist coverage rideshare companies like Uber and Lyft are required to carry. The number dropped from $1,000,000 per person to $60,000. That’s a 94 percent cut, and most riders have no idea it happened.
The law responsible for this is Senate Bill 371, signed in late 2025. If you’re a regular rideshare user or if you drive for Uber or Lyft as a side income this change affects you directly.
What SB 371 Actually Changed
Before January 1, 2026, rideshare companies operating in California were required to maintain $1 million in UM/UIM coverage per person during an active trip meaning any time a passenger was in the vehicle. That coverage existed specifically to protect riders and drivers when an accident is caused by someone who either has no insurance or doesn’t have enough to cover the damages.
Under SB 371, the new limits are:
- $60,000 per person in UM/UIM coverage (down from $1,000,000)
- $300,000 per accident in UM/UIM coverage (down from $1,000,000)
The law applies to the “on-trip” phase when a passenger is physically inside the Uber or Lyft vehicle.
To put this in plain terms: a serious car accident can generate medical bills well over $60,000 in a matter of days. A night in the ICU, emergency surgery, a few weeks of inpatient rehab you can burn through $60,000 before you’re even discharged. For spinal injuries, traumatic brain injuries, or multi-fracture crashes, $60,000 covers a fraction of the actual cost.
What Happens When the Other Driver Is at Fault
A third-party driver runs a red light and hits your Uber. That driver either has no insurance or $30,000 in coverage (the California minimum per person as of 2025) against $80,000 in medical bills. Before 2026, Uber’s UM/UIM policy would have covered up to $1 million per person to bridge that gap. Now it covers $60,000.
Here is the order in which coverage applies:
- The at-fault driver’s liability insurance — this pays first. California’s minimum is $30,000 per person. If the other driver has more, you collect up to their limit.
- Uber’s UM/UIM policy — if the at-fault driver’s coverage doesn’t fully cover your damages, Uber’s UM/UIM kicks in next. Under SB 371, that’s $60,000 per person. Per §5433(b)(2), this policy is explicitly primary over any other UM/UIM coverage you may carry.
- Your personal auto insurance (UM/UIM) — if you carry UM/UIM on your own policy, it can apply after Uber’s coverage is exhausted.
- Health insurance / MedPay — covers remaining medical expenses not picked up by the above.
One important detail: Uber’s $60,000 and the at-fault driver’s $30,000 do not automatically add up to $90,000. If the other driver carries $30,000 and your total damages are $100,000, Uber’s UIM covers the gap not an additional $60,000 on top. How these policies interact depends on how each one is written, and getting that calculation wrong costs money.
What Happens When Uber’s Driver Is at Fault
This is where the new law leaves things unchanged. When the Uber driver causes the accident, you’re in liability territory and that coverage stays at $1 million per incident under §5433(b)(1).
That $1 million is a single pool shared by everyone injured in the same crash. If you’re a passenger and there’s another passenger, a pedestrian, or a cyclist also making claims, all of you are drawing from the same $1 million. In a crash with serious injuries across multiple victims, that pool can be exhausted before everyone is made whole.
What happens then? Under §5433(f), Uber’s liability doesn’t stop at the insurance limit. The company itself can be sued for damages above $1 million. That’s a harder road than an insurance claim, but it’s a real one and it’s why having an Uber accident lawyer early in a multi-victim crash matters. Once that $1 million starts getting allocated to other claimants, your leverage changes.
What Injured Riders and Drivers Should Know
Review your own auto insurance policy. Check whether you carry UM/UIM coverage and what your limits are. If you don’t own a car, this is worth looking at — California allows non-owner auto insurance policies that include UM/UIM. Given what just changed with rideshare coverage, it’s a reasonable layer of protection.
Document everything from the scene. Photos, witness information, the Uber trip receipt, driver information, and the other vehicle’s insurance details if you can get them. Rideshare accident claims involve multiple potential insurance carriers, and gaps in documentation create leverage for insurers to minimize payouts.
Don’t settle quickly. Insurance companies including those backing rideshare companies know about these new limits. Some may use SB 371 as a framing device to push you toward a quick, low settlement based on the $60,000 cap. An attorney can identify whether other coverage applies and whether the settlement being offered actually reflects the full extent of your damages.
Fault analysis matters more now. If Uber’s driver shares any portion of fault for the accident, that opens the door to the liability coverage which still has a $1 million limit. A thorough investigation into how the accident happened can significantly change the coverage picture.
Talk to a California Uber Accident Lawyer Before You Settle
SB 371 only went into effect on January 1, 2026. Courts haven’t had time to fully work through how it applies in disputed cases, what arguments insurers will make about stacking, and how comparative fault affects recovery when UM/UIM coverage is in play. That’s not a reason to panic, but it is a reason to work with an Uber accident attorney who’s tracking how these cases are developing in real time rather than relying on how rideshare claims worked two years ago.
The Ventura County and Los Angeles area highways see rideshare traffic constantly: the 101, the 405, surface streets through Thousand Oaks, Calabasas, and the western San Fernando Valley. If you or someone you know has been injured in an Uber or Lyft accident since January 1, 2026, the insurance landscape is different than it was, and your recovery strategy needs to account for that.
Bojat Law Group represents personal injury victims throughout California. If you were injured in a rideshare accident and want to understand what coverage actually applies to your situation, call us at (818) 877-4878 for a free consultation.
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