A coalition of 7,464 California rideshare drivers has announced its support for Senate Bill 371 (SB 371), which calls for reduced uninsured and underinsured motorist coverage requirements and shifts responsibility to transportation network companies (TNCs).
SB 371, authored by Senator Christopher Cabaldon, seeks to modernize insurance regulations for California TNCs. The bill proposes lowering uninsured/underinsured motorist (UM/UIM) coverage requirements during Period 3—when a passenger is in the vehicle—from $1 million to $50,000 per person and $100,000 per incident. It also shifts the responsibility for maintaining this coverage to the TNCs unless a driver opts in. According to the Assembly Insurance Committee analysis, the bill “accomplishes this goal by rightsizing the state requirement” to these new thresholds.
A study conducted in June 2025 by Berkeley Research Group (BRG) found that California’s $1 million UM/UIM mandate substantially exceeds the needs of nearly all accident claims, with 96% of cases settling below $100,000. The study warned that excessive insurance limits can incentivize litigation and fraud—driving up costs for riders and enabling “litigation abuse.” It states, “The study finds that this mandate imposes costs that far outweigh its benefits—incentivizing litigation and fraud, likely raising fares and reducing the accessibility of rideshare transportation.”
According to legislative and industry testimony before the Assembly Insurance Committee on July 16, 2025, in Los Angeles County as much as 45% of a typical ride fare goes toward insurance—including the UM/UIM component. Uber told lawmakers this insurance framework “is driving unsustainable cost pressures,” while Lyft estimated that $6 of every California ride—double the national average—is spent on mandated insurance premiums. The Assembly analysis confirms these figures as key support for shifting coverage to TNCs to alleviate the fare burden.
Rideshare Drivers United (RDU) is a grassroots organization founded in 2018 by Los Angeles-based rideshare drivers committed to labor rights and democratic worker organizing. With over 20,000 members across California and active chapters in Los Angeles, San Diego, and the Bay Area, RDU advocates for fair wages, benefits, and full employee status for app-based workers.
