The California State Legislature has announced new data reporting requirements concerning insurance claims and accidents involving transportation network companies (TNCs).
According to the legislative proposal, SB 371 aims to reduce the current $1 million uninsured/underinsured motorist (UM/UIM) requirement for TNCs to $50,000 per person and $100,000 per incident. This adjustment applies during the period when a passenger is in the vehicle—from entry to exit—and reflects legislative intent to "rightsize" insurance mandates enacted under AB 2293 in 2014. The bill seeks to balance cost containment with consumer protection, acknowledging that $1 million coverage may be excessive based on available claims data and evolving market conditions.
Analysis from the Assembly Insurance Committee indicates that approximately 60% of UM/UIM claims by TNCs would settle under the proposed $50,000/$100,000 limits. This suggests that 40% of claims might exceed this reduced threshold, potentially shifting those costs to other sources such as passengers' personal auto policies or leaving them uncompensated. The analysis highlights a consequential cost shift that may affect policyholders and underscores the importance of data-driven evaluation of coverage thresholds.
The bill requires the California Public Utilities Commission to include aggregated data in its annual report to the Legislature for 2022–2024 on the number of automobile accidents reported by TNCs and the percentages resulting in UM/UIM claims—including claims over $100,000. Importantly, these figures must be presented without identifying individual companies to preserve confidentiality while still providing insight into industry-wide trends. These reporting requirements aim to inform policymakers on whether the lowered thresholds align with actual claim patterns.
The California State Legislature, a bicameral body comprising the Assembly and Senate, is responsible for creating state laws, overseeing regulatory agencies, and balancing complex stakeholder interests—including public safety, economic efficiency, and consumer protection.