For years, rideshare passengers across California believed they were protected by generous insurance coverage whenever they stepped into an Uber or Lyft. Advertising, app disclosures, and common assumptions all reinforced the idea that rideshare companies carried one million dollars in coverage for passenger injuries, regardless of how an accident occurred.
That assumption changed in 2025.
California Senate Bill 371 reshaped rideshare insurance requirements, surprising many passengers and injury victims. The law reduced the uninsured and underinsured motorist coverage available to rideshare passengers, creating a significant gap when accidents involve drivers who carry little or no insurance. For passengers injured through no fault of their own, this change can have serious financial consequences.
Zinn Law Firm represents injured rideshare passengers in San Francisco and closely follows changes in California transportation and insurance law. This article explains SB 371, how rideshare insurance worked before 2025, what the new limits mean, and why passengers now need to think differently about protecting themselves. Speak to a San Francisco rideshare accident attorney if you feel you have a case.
Takeaways about 2025 Rideshare "SB 371" Shock
- SB 371 changed California's rideshare law in 2025 by reducing Uber and Lyft's uninsured and underinsured motorist coverage from $1 million to significantly lower statutory limits.
- Rideshare passengers injured by uninsured or underinsured drivers now face greater financial exposure when medical costs exceed the reduced coverage available under the new law.
- Serious rideshare injuries can quickly exhaust the new $60,000 per person limits, especially when hospital care, surgery, or long-term treatment is required.
- Many passengers do not realize that their uninsured motorist coverage may apply even when they are injured while riding in an Uber or Lyft vehicle.
- Insurance companies are more likely to dispute coverage and push early settlements following SB 371, making it essential to understand how multiple policies interact.
- After a rideshare crash involving coverage concerns, contact a rideshare accident lawyer for more information about your rights, available insurance, and potential compensation options.
How Rideshare Insurance Worked Before 2025
Before SB 371, Uber and Lyft were required to carry one million dollars in uninsured and underinsured motorist coverage while a passenger was in the vehicle. This coverage applied when another driver caused the crash and lacked sufficient insurance to pay for injuries.
For passengers, this meant peace of mind. If a drunk driver, hit-and-run motorist, or minimally insured driver caused a collision, the rideshare company's UM or UIM policy could step in to cover medical bills, lost income, and other damages.
Many passengers did not realize how important this protection was until they were injured. In major cities, a large percentage of serious crashes involve drivers who carry only the minimum required insurance or none at all.
What SB 371 Changed in 2025
SB 371 dramatically reduced the amount of uninsured and underinsured motorist coverage available to rideshare passengers. Under the new law, Uber and Lyft are no longer required to provide $1 million in UM/UIM coverage for passengers.
Instead, the required coverage limits were reduced to $60,000 per person, $60,000 per accident for bodily injury, and $300,000 total. These limits are often written as $60,000/$60,000/$300,000.
While these numbers may sound substantial, they are often insufficient in serious injury cases, especially when multiple passengers are involved.
Why This Change Matters for Injured Passengers
Rideshare passengers are uniquely vulnerable after an accident. They have no control over who is driving the rideshare vehicle or the other cars on the road. When an uninsured or underinsured driver causes a crash, passengers rely heavily on UM coverage to pay for their injuries.
Medical costs in serious accidents can exceed 60,000 dollars very quickly. Emergency care, hospital stays, surgery, rehabilitation, and follow-up treatment add up fast. If more than one passenger is injured, the available coverage may be divided among them.
Under SB 371, the coverage that once protected passengers in catastrophic situations is now far more limited.
What Uninsured and Underinsured Motorist Coverage Actually Does
Uninsured motorist coverage applies when the at-fault driver has no insurance at all. Underinsured motorist coverage applies when the at-fault driver's insurance is too low to compensate injured victims fully.
In rideshare cases, UM and UIM coverage is often the most important source of recovery. Many serious crashes involve drivers who carry only the state minimum limits, which are rarely enough to cover severe injuries.
By reducing these limits for rideshare passengers, SB 371 shifts more financial risk onto the injured individual.
Common Accident Scenarios Affected by SB 371
SB 371 has the most significant impact on crashes involving uninsured or underinsured drivers. Common scenarios include:
- A rideshare vehicle struck by a hit-and-run driver
- A drunk driver with no insurance causing a collision
- A driver carrying only minimum coverage injuring multiple passengers
- A multi-vehicle crash where liability coverage is quickly exhausted
In these situations, passengers may discover that the rideshare company's insurance no longer provides the level of protection they expected.
Why Rideshare Passenger Injuries Are Often Severe
Passengers often assume that sitting in the back seat reduces the risk of injury. In reality, rideshare passengers frequently suffer serious harm because they are unprepared for impact and may not brace themselves.
Common injuries include head injuries, spinal injuries, fractures, internal injuries, and soft tissue damage. Recovery may take months or longer, and some injuries lead to permanent limitations.
With lower UM and UIM limits, the financial burden of these injuries increasingly falls on the passenger.
The Growing Importance of Personal UM Coverage
One of the most critical consequences of SB 371 is the renewed importance of carrying personal uninsured and underinsured motorist coverage. Many California drivers already have UM or UIM coverage on their own auto policies, but few realize it may protect them as passengers.
In many cases, a passenger's own UM coverage can apply even when they suffer an injury in a rideshare vehicle. This can provide an additional layer of protection beyond the reduced rideshare limits.
Passengers who do not carry their own UM coverage may have very limited options after a serious crash.
How Insurance Companies Are Responding to SB 371
Insurance companies have adjusted quickly to the new law. Claims that once involved one million dollars in available UM coverage now begin with much lower limits. Insurers may push for quick settlements that fail to account for future medical care or long-term consequences.
Passengers may also face confusion about which policy applies first and how different coverages interact. These issues can delay claims and complicate recovery.
Rideshare Passenger Rights After the 2025 Law
Despite the reduction in coverage, rideshare passengers still have important rights. Injured passengers can pursue claims against at-fault drivers, rideshare drivers when applicable, and available insurance policies.
Passengers also have the right to full compensation for their injuries under California law. The challenge is identifying all available sources of recovery and ensuring insurers apply the correct coverage.
Understanding rideshare passenger rights has never been more important than after the passage of SB 371.
Why These Issues Are Especially Important in San Francisco
Rideshare usage is exceptionally high in San Francisco, where dense traffic, tourism, and nightlife increase the risk of serious collisions. The city also sees a high number of uninsured and underinsured drivers.
When accidents occur, passengers often assume the rideshare company's insurance will handle everything. SB 371 makes that assumption risky.
What Passengers Should Do After a Rideshare Accident
After a rideshare accident, passengers should seek medical care immediately and ensure a police report is completed. It is essential to document the ride, the vehicles involved, and all insurance information.
Passengers should also avoid relying solely on statements made by rideshare companies or insurers about coverage limits. The details matter, and misunderstandings can cost injured passengers significant compensation.
Looking Ahead After SB 371
SB 371 represents a significant shift in how California treats rideshare passenger protection. By reducing UM and UIM limits, the law places greater responsibility on individuals to protect themselves through personal insurance planning.
For injured passengers, the law also raises the stakes in rideshare accident claims. Identifying coverage, understanding policy limits, and addressing insurer tactics are now more critical than ever.
How a Rideshare Accident Lawyer Can Help Your Claim
The 2025 passage of SB 371 significantly altered the legal and insurance landscape for rideshare passengers in California. Many injured passengers are surprised to learn that the protection they once relied on has been reduced. A rideshare accident lawyer plays an important role in helping injured passengers understand these changes and protect their rights.
Explaining What SB 371 Means for Your Claim
One of the first ways a rideshare accident lawyer helps is by explaining how SB 371 affects your specific situation. Before 2025, rideshare passengers often had access to $1 million in uninsured and underinsured motorist coverage. SB 371 reduced those limits dramatically.
A lawyer can explain how the new $60,000 per person and $300,000 total limits apply to your injuries, whether multiple passengers are involved, and how quickly those limits can be exhausted in serious accidents.
Identifying All Available Insurance Coverage
After SB 371, identifying coverage is more important than ever. A rideshare accident lawyer reviews every possible insurance policy that may apply to your claim. This can include:
- The at-fault driver's liability insurance
- The rideshare company's reduced UM or UIM coverage
- The rideshare driver's personal policy applies in limited circumstances
- Your own uninsured or underinsured motorist coverage
Many passengers do not realize their personal auto insurance may provide coverage even when they suffer an injury as a rideshare passenger. A lawyer can evaluate policy language and determine how these coverages interact.
Addressing Insurance Company Tactics After SB 371
Insurance companies adjusted quickly after SB 371 took effect. With lower coverage limits, insurers may push early settlements that fail to reflect the full cost of medical care, future treatment, or lasting injuries.
A rideshare accident lawyer can handle communications with insurers, challenge improper coverage positions, and prevent statements from being used to minimize your claim. This is especially important when insurers attempt to shift the focus away from injury severity toward lower policy limits.
Documenting Injuries and Long-Term Impact
Rideshare accidents often cause serious injuries, including head injuries, spinal injuries, fractures, and internal damage. These injuries may require extended treatment and long recovery periods.
A rideshare accident lawyer helps ensure medical records clearly document the connection between the crash and your injuries. This includes gathering hospital records, treatment plans, specialist evaluations, and future care projections. Proper documentation is critical when available insurance coverage is limited under SB 371.
Evaluating Uninsured and Underinsured Driver Claims
SB 371 most heavily affects cases involving uninsured or underinsured drivers. A lawyer can analyze whether a driver truly lacks coverage, whether additional policies apply, and how UM or UIM claims should be presented.
These claims often involve complex timing and notice requirements. A rideshare accident lawyer ensures deadlines are met and that claims are properly supported before insurers make final decisions.
Contact a San Francisco Rideshare Accident Attorney Now
The 2025 passage of SB 371 changed the landscape for rideshare passenger injuries in California. By slashing uninsured and underinsured motorist coverage from one million dollars to significantly lower limits, the law leaves many passengers exposed after serious accidents.
Understanding SB 371, rideshare passenger rights, and the importance of personal UM coverage is essential for anyone who relies on Uber or Lyft. If you suffered an injury in a rideshare accident involving an uninsured or underinsured driver, Zinn Law Firm helps passengers pursue available coverage and compensation under California law. Speak to a San Francisco personal injury lawyer today if you think another party's negligence has injured you.
FAQs: Did Rideshare Companies Reduce Passenger Coverge?
Does SB 371 affect all Uber and Lyft accidents?
SB 371 mainly affects accidents involving uninsured or underinsured drivers. Liability coverage for at-fault rideshare drivers is not directly changed by this law.
Why is the new coverage limit a concern for passengers?
Serious injuries can quickly exceed the reduced limits, leaving injured passengers responsible for medical bills, lost income, and future treatment costs not covered by insurance.
What if multiple passengers suffered injuries in the same crash?
When multiple passengers are hurt, the total coverage amount may be divided among them, which can significantly reduce the compensation available to each individual.