If you ride Uber or Lyft in Los Angeles, 2026 brought a coverage change that most passengers won’t learn about until it’s too late: California SB 371 rideshare insurance changes reduced the required uninsured/underinsured motorist (UM/UIM) coverage for rideshare passenger trips.

That matters because UM/UIM coverage is the safety net when the driver who causes the crash has no insurance or not enough insurance to cover serious injuries. In a city with dense traffic, high-speed freeways, and constant rideshare use, this is not a small technical tweak—it can change what money is actually available after a major collision.

Quick note: This article is general information, not legal advice. If you were hurt, talk to a qualified attorney about your specific facts and deadlines.

What SB 371 changed in plain English

SB 371 is a California law (chaptered October 3, 2025) that amended insurance requirements for transportation network companies (TNCs) like Uber and Lyft. The key passenger-impacting change is the minimum required UM/UIM coverage during a rideshare trip.

According to the California Legislative Information bill text, SB 371 was approved in October 2025 and becomes effective in 2026 for the updated coverage structure. Multiple credible summaries—and Uber’s own newsroom explanation—describe the new UM/UIM minimums as $60,000 per person and $300,000 per incident for passenger-trip UM/UIM protection. Official bill text (CA Legislature)

Bottom line: if you are seriously injured and the at-fault driver is uninsured/underinsured, the pool of money available from rideshare UM/UIM can be dramatically lower than many people assume. :contentReference[oaicite:4]{index=4}

Why California SB 371 rideshare insurance changes matter to LA passengers

UM/UIM is often the difference between “medical bills covered” and “financial disaster.” Many severe injury cases easily exceed $60,000 in medical costs alone—especially when you factor in ambulance transport, ER care, imaging, surgery, rehab, and time off work.

Los Angeles also has ongoing traffic safety challenges. Recent local reporting highlights that traffic deaths remain a major concern across LA streets, reinforcing how often serious crashes occur. If a major crash involves an uninsured driver, the reduced UM/UIM limits can become a hard ceiling unless other coverage sources exist. :contentReference[oaicite:5]{index=5}

What UM/UIM is (and what it is NOT)

UM/UIM coverage is designed to pay when the person who caused the crash cannot. It is different from:

• Liability insurance (pays for injuries when the rideshare driver is at fault)
• Medical payments (MedPay) or health insurance (pays medical bills regardless of fault, depending on the policy)
• Workers’ comp (if you were working at the time, depending on your situation)

Important nuance: Even with SB 371, many sources still report that rideshare companies maintain $1 million liability coverage for injuries caused by the rideshare driver during certain phases of a trip—but the big controversy is the reduced UM/UIM safety net when a third-party driver is uninsured/underinsured. :contentReference[oaicite:6]{index=6}

Common scenarios where the new limits hurt passengers

1) You’re in an Uber/Lyft and another driver causes the crash

If the other driver has little or no insurance, your recovery may lean heavily on UM/UIM. Under the California SB 371 rideshare insurance changes, that pool can be limited.

2) Multi-passenger crashes

The “per incident” cap matters when more than one person is injured. If multiple riders are hurt in the same collision, the available UM/UIM coverage may be shared, which can reduce what any one person receives. :contentReference[oaicite:7]{index=7}

3) Hit-and-run collisions

Hit-and-runs often function like “uninsured” cases because you may not have an identified at-fault driver. That can push the claim toward UM/UIM and make the new limits especially painful.

What you should do after an Uber or Lyft crash in Los Angeles

Most people unknowingly damage their case in the first week. Here’s the practical checklist that protects you (and your options):

Step 1: Get medical care immediately

Don’t “wait and see” for concussions, soft tissue injuries, back injuries, or internal injuries. Early documentation matters.

Step 2: Document the rideshare details

• Screenshot your trip (driver name, time, pickup/drop-off)
• Save messages and notifications
• Take photos/video of the scene, vehicles, and injuries
• Get witness info if possible

Step 3: File the police report (or get the report number)

Insurance carriers lean heavily on official reports—especially when fault is disputed.

Step 4: Be careful with statements to insurers

Insurance adjusters are trained to minimize payouts. If you want a deeper guide on handling the insurance process, read:
Dealing with Insurance Companies After an Accident.

How fault can reduce your payout (even if you were “just a passenger”)

Passengers are often told “you can’t be at fault,” but insurers may still try to argue shared fault in some situations (seatbelt issues, disputed facts, multiple vehicles, etc.). California uses pure comparative negligence concepts in injury cases, which means fault arguments can change the math.

Internal link for readers who need the basics:
Understanding Comparative Negligence in California Personal Injury Cases.

Big mistake in 2026: posting about the crash online

One of the fastest ways to weaken your claim is social media. Even harmless posts can be misinterpreted (“They look fine to me”). Your site already covers this clearly—link it in your rideshare content cluster:

The Impact of Social Media on Your Personal Injury Claim

What other coverage sources might still exist?

Even with the California SB 371 rideshare insurance changes, victims may still have other potential sources of recovery depending on the facts:

• The at-fault driver’s insurance (if they have it)
• The rideshare driver’s liability coverage (if the rideshare driver contributed)
• Your own auto policy UM/UIM (sometimes applies even if you weren’t driving)
• Health insurance / MedPay to cover treatment while liability issues are resolved
• Employer coverage if the ride was work-related (fact-specific)

This is exactly why early investigation matters: you’re not just proving fault—you’re mapping coverage.

Deadlines: don’t sleep on the clock

California personal injury cases often involve strict filing deadlines. Your site notes that many claims generally follow a two-year timeline, and government-related claims can have shorter notice requirements depending on the entity involved. If you miss the deadline, you can lose the claim entirely.

Related internal reading (for accident documentation and claim steps):

• Distracted Driving Accidents in Los Angeles: Legal Rights and Compensation
• Pedestrian Accidents in Los Angeles: Legal Rights and Responsibilities

What to take away from SB 371 (the straight truth)

California SB 371 rideshare insurance changes make it easier for a severe rideshare injury case to become underfunded when the at-fault driver is uninsured or underinsured. That does not mean you have “no case.” It means the coverage puzzle is more important than ever, and the margin for early mistakes is smaller.

If you ride frequently in Los Angeles, the safest move is awareness: understand that UM/UIM may be limited, protect your documentation after any crash, and don’t assume the rideshare company automatically provides “a million dollars for everything” in every scenario.

For official context, you can review SB 371 directly through California Legislative Information:
SB 371 bill text.