If you were injured as an Uber or Lyft passenger in California, 2026 brought a coverage change that directly affects how much money you can recover. SB 371 rideshare accident settlement California 2026 negotiations look fundamentally different than they did just months ago, and every injured passenger needs to understand why. Senate Bill 371 took effect January 1, 2026, slashing the mandatory uninsured and underinsured motorist (UM/UIM) coverage requirement for rideshare companies by 94 percent — from $1,000,000 down to $60,000 per person and $300,000 per incident. That gap — nearly $940,000 per victim — does not disappear on its own. Knowing where to look for the remaining compensation is now the most critical step in any California rideshare injury claim.
What SB 371 Actually Changed: The UM/UIM Coverage Reduction Explained
Before January 1, 2026, Transportation Network Companies (TNCs) like Uber and Lyft operating in California were required to carry $1,000,000 in uninsured and underinsured motorist coverage. This protection activated whenever a rideshare passenger was injured by an uninsured driver or a driver whose liability limits were too low to cover the full extent of injuries. The $1M floor gave seriously injured passengers a realistic path to full compensation even when the at-fault driver carried no insurance at all.
SB 371 changed that floor dramatically. Under the new statute, effective January 1, 2026, rideshare companies are only required to maintain UM/UIM limits of $60,000 per person and $300,000 per accident — a 94 percent reduction in per-person coverage, according to legal tracking published by Victims Lawyer in May 2026. This reduction applies specifically to the UM/UIM portion of the TNC’s insurance policy — not the liability coverage owed when the rideshare driver is at fault. When the rideshare driver causes the crash, the $1,000,000 liability requirement remains intact. The reduction targets the scenario where a third-party uninsured driver hits the rideshare vehicle and injures the passenger inside.
You can review the full enrolled text of SB 371 on the California Legislative Information portal to confirm the specific statutory language governing these new minimums. Understanding the exact wording matters when your attorney begins negotiating with the TNC’s insurer, because the insurer will rely on that language to cap its exposure at $60,000.
How the Coverage Gap Changes SB 371 Rideshare Accident Settlement Values in 2026
Settlement calculations in any motor vehicle case start with available insurance coverage. When the coverage ceiling drops by more than 90 percent, settlement offers follow — unless the victim actively pursues every remaining avenue of recovery. The SB 371 rideshare accident settlement California 2026 reality means that a passenger with $350,000 in medical bills, lost wages, and pain and suffering damages now faces a TNC UM/UIM policy that maxes out at $60,000 per person. That leaves $290,000 or more unaccounted for if no other coverage is identified. Context matters here: industry data shows injury claim costs have increased by more than 30 percent since 2020, meaning victims are absorbing both higher medical expenses and a sharply reduced coverage ceiling at the same time.
The table below illustrates how available coverage has shifted for injured rideshare passengers under different accident scenarios in 2026.
Ryan Fletcher is an auto accident claims researcher with extensive knowledge of car accident liability, insurance claims processes, and settlement values across all 50 US states. Ryan is not an attorney and the information provided is for educational purposes only.