Think your rideshare trip still packs the same insurance punch it did last year? Not anymore—California changed the rules as of January 1, 2026. If you’re a passenger and an uninsured or underinsured driver crashes into you, the max payout for Uber and Lyft trips now usually tops out at $60,000 per person and $300,000 per accident. That’s a huge drop from what riders used to expect.
Let’s break down what’s different, how these changes could hit your pocket after a crash, and what you can actually do if you’re injured. If you ever end up hurt in a rideshare accident, it’s probably smart to reach out to a local attorney who knows the rideshare insurance maze—they can help you figure out your options.
Major Uber and Lyft Insurance Changes in January 2026
SB 371 slashes the uninsured/underinsured motorist protection riders once counted on. It also spells out how liability and work-related coverage work at different points in the app. This law joins AB 1340 and Prop 22 tweaks that mess with driver status and workplace protections, too.
SB 371 and the New UM/UIM Limits
Senate Bill 371 (SB 371) kicked in on January 1, 2026, and it basically chopped down the minimum uninsured/underinsured motorist (UM/UIM) coverage that rideshare companies have to offer. Instead of letting companies decide, the law now sets much lower caps for when you’re actually in the car. Both Uber and Lyft in California have to follow these new rules.
So, under SB 371, the TNC (that’s “transportation network company”—Uber or Lyft, basically) is now on the hook for these lower UM/UIM amounts during your ride. The bill passed along with AB 1340, which shakes up driver bargaining rights and keeps drivers as independent contractors, which might affect what other coverage drivers have. Riders and drivers both need to double-check what’s actually covered now—don’t assume it’s the same as it was before 2026.
From $1 Million to $60,000: What Coverage Was Reduced
Before all this, most rideshare companies offered $1 million in UM/UIM per person and per accident. Now, thanks to SB 371, it’s been slashed to $60,000 per person and $300,000 per accident if you’re a passenger. Liability limits for people outside the car—like another driver or a pedestrian hit by the rideshare—can still be higher in some situations, but the UM/UIM cuts mean passengers have way less to recover if the at-fault driver doesn’t have enough insurance.
If you end up with a serious injury (think spinal cord damage, brain trauma, multiple broken bones), that $60,000 can vanish fast. Victims will probably have to stack the TNC cap with their own auto UM/UIM, health insurance, or even occupational accident coverage under Prop 22 to cover all the bills.
How Insurance Coverage Works During Rideshare Periods
Rideshare accidents fall into these “periods” based on what the app says. Period 1 (app on, but you haven’t accepted a ride) usually means the driver’s personal insurance is in play, and UM/UIM is pretty limited (if it’s there at all). Period 2 (en route to pick someone up) often triggers higher third-party liability—sometimes up to $200,000 extra—for people hurt by the driver. Period 3 (passenger in the car) used to mean $1 million UM/UIM, but now, after SB 371, it’s just $60,000 per person and $300,000 per accident for UM/UIM. Some liability coverage for third parties might still hit $1 million.
Drivers should look into occupational accident coverage under Prop 22 and check if their own insurance has any helpful add-ons. Riders? Report the crash in the app and keep track of your injuries—often, you’ll need to patch together a bunch of different coverages to get fully paid back.
What Riders and Accident Victims Need to Know Now
Bottom line: riders can expect way less protection from Uber and Lyft’s insurance for hit-and-run or underinsured driver crashes now. You might need your own insurance—or a lawyer—to fill in the gaps. Knowing which policy applies when, how to keep good records, and when to get legal help really matters for your recovery.
Reduced UM/UIM: Scenarios for Injured Passengers
If you’re hurt as a rideshare passenger and the driver who hit you doesn’t have enough insurance, the TNC’s UM/UIM benefit now usually maxes out at $60,000 per person and $300,000 per accident (yep, as of January 1, 2026). If your medical bills go over that—which isn’t rare for brain or spinal injuries—you could be left holding the bag.
If the app shows that the trip was active and you were a passenger, the TNC’s liability policy still covers third-party claims, but the UM/UIM limit only kicks in when the other driver is uninsured or underinsured. Save everything: screenshots showing your app status, the police report, photos, medical records—all of it helps prove your claim and when the crash happened.
Financial Risks for Riders After an Accident
With the UM/UIM cap so much lower, more risk lands on the rider. Hospital bills, missed work, long-term care—they can all blow past $60,000 pretty quickly. For example, a major injury with surgery and rehab can cost way more than that in just a few months.
So, riders might have to chase compensation from a bunch of places: the at-fault driver (if they have insurance), the TNC’s liability policy, the TNC’s UM/UIM (but only up to the cap), and their own insurance. Consumer Attorneys of California and personal injury lawyers are already warning: don’t jump at those early settlement offers—chances are, they won’t come close to covering your future expenses. Make sure you know what you’ll need before you sign anything.
The Role of Your Own Insurance and Legal Counsel
Honestly, rider-owned underinsured motorist coverage can be a lifesaver when the TNC’s UM/UIM limits just don’t cut it. Sometimes your own auto policy will step in to fill the gap, but every policy has its quirks—stacking rules, deadlines for giving notice, all those little details that can trip you up. Sure, medical payments or your health insurance might help with those first scary bills, but heads up: they might want their money back if you get a settlement later.
If you’re dealing with a rideshare accident, a lawyer who knows the ins and outs of Uber and Lyft insurance is pretty much essential. They’ll dig up every possible policy that could apply, make sure you don’t miss any critical deadlines, and push back when insurers get stingy. Plus, they’ll figure out if your claim actually fits within the TNC’s liability window—something that depends on whether the app was on, off, or somewhere in between. If you’re hurt, it’s smart to gather whatever evidence you can, report the crash through the app, and talk to a rideshare accident attorney as soon as you can. It’s the best shot at protecting your rights and actually getting what you deserve.
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