California law cuts rideshare uninsured motorist coverage in some crashes

A new California law that took effect Jan. 1, 2026 reduces uninsured and underinsured motorist coverage in some rideshare crashes, potentially lowering payouts when another driver is at fault and lacks enough insurance. The change leaves rideshare liability coverage largely intact when the rideshare driver causes the crash. Why it matters: - California Senate Bill 371 changes a key layer of protection in some rideshare crashes. - The law can lower compensation for passengers, pedestrians, cyclists and other drivers when an at-fault driver has too little insurance. - The change matters most in serious crashes where medical bills, rehabilitation and other losses quickly exceed available coverage. What happened: - California reduced required uninsured and underinsured motorist coverage for rideshare passenger trips starting Jan. 1, 2026. - The coverage limit dropped from up to $1 million to about $60,000 per injured person and $300,000 per accident. - The law applies to UM/UIM coverage, not to the liability coverage that generally applies when a rideshare driver causes a crash. - The $1 million liability policy for rideshare operations generally remains in effect when the rideshare driver is responsible. The details: - UM/UIM coverage is designed to help when the driver who caused the crash does not have enough insurance. - The lower limit affects cases where another driver, not the rideshare driver, caused the collision. - Passengers in rideshare vehicles can be affected if they are injured by a driver with insufficient insurance. - Pedestrians, cyclists and occupants of other vehicles can also be affected in rideshare-related collisions. - In crowded traffic areas such as Los Angeles, rideshare crashes can involve several vehicles and multiple insurance policies. - Those overlapping policies can make claims slower and harder to resolve. - A serious collision can trigger costs for ambulance transport, hospital treatment, diagnostic testing and long-term rehabilitation. Between the lines: - The legal change narrows a protection many riders assumed was broader than it was. - The main shift is not whether rideshare crashes are covered, but how much coverage is available when the at-fault driver is uninsured or underinsured. - Lower UM/UIM limits may push more injured people into coverage disputes and recovery gaps. - Complex crash scenes often require sorting out the timing of the trip, the status of the rideshare vehicle and the insurance carried by each driver. What’s next: - Transportation analysts and legal professionals are still assessing how the new limits will affect claims in 2026 and beyond. - Victims in rideshare-related crashes will likely need to review which policy applies before they can estimate available compensation. - Attorneys say the key questions will remain the at-fault driver’s insurance status, the coverage category triggered by the crash and the exact circumstances of the trip. The bottom line: - California’s new law keeps rideshare liability coverage in place, but it trims the uninsured motorist protection that can help when another driver causes the crash and cannot fully pay for the damage.