Sacramento, California – A new law aims to make Uber and Lyft rides more affordable for Californians. On October 3, 2025, Governor Gavin Newsom officially signed Senate Bill 371, authored by Senator Cabaldon, as part of a legislative effort to reduce transportation costs for riders and drivers. The measure is expected to lower fares for people relying on rideshare services for work, school, or medical appointments, while also enhancing working conditions for drivers across the state.
Lowering Costs and Reforming Rideshare Insurance
Senate Bill 371 modifies insurance requirements for rideshare companies to reduce costs passed on to customers. The bill lowers the mandated uninsured and underinsured motorist coverage from $1 million to $60,000 per individual and $300,000 per accident.
This change aligns coverage levels with actual claims data collected over the past decade, which showed existing requirements were significantly higher than necessary. According to Uber and Lyft, insurance mandates have significantly affected inflated fares. In Los Angeles, 45% of a typical ride fare went toward insurance-related costs.
At the same time, Lyft reported that approximately $6 of each ride in California is allocated to insurance—double the national average. In contrast, taxis, buses, and limousines are not mandated to maintain the same coverage level, which creates an uneven cost burden on rideshare operators and users.
What Senate Bill 371 Means for Riders and Drivers
SB 371 could have ripple effects for both customers and drivers in the rideshare industry:
- Lower Fares: Reducing mandated insurance costs may decrease the price of Uber and Lyft rides statewide.
- Driver Empowerment: The legislation also supports drivers’ right to join unions and negotiate for improved wages and benefits.
- Balanced Coverage: Adjusting insurance limits ensures continued protection for accident victims while maintaining affordable premiums.
- Industry Stability: These updates modernize outdated policies and align rideshare insurance with real-world data and risks.
Let Our Personal Injury Lawyers Fight for You
If you’ve been injured in a rideshare accident, understanding how Senate Bill 371 affects insurance coverage is essential to protecting your rights. As personal injury lawyers in Sacramento, our team helps victims navigate complex claims involving Uber, Lyft, and other transportation providers.
📞 Contact us today for a free consultation to discuss your case and learn how we can help you recover after an injury. We ensure you receive the medical care you need and the compensation you deserve under the latest state laws.
