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SB-371 • 2026

Transportation network companies: insurance coverage.

Transportation network companies: insurance coverage.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Cabaldon
Last action
2025-10-03
Official status
Chaptered by Secretary of State. Chapter 314, Statutes of 2025.
Effective date
Not listed

Plain English Breakdown

The official source does not provide information on how the changes might impact ride-share company operations or costs, so this statement was removed.

Insurance Rules for Ride-Share Companies

This law changes insurance requirements for ride-share companies and their drivers, making the company responsible for certain types of coverage.

What This Bill Does

  • Reduces the amount of uninsured motorist and underinsured motorist coverage from $1 million to $60,000 per person and $300,000 per incident.
  • Makes ride-share companies responsible for providing this insurance coverage instead of individual drivers.
  • Requires the Public Utilities Commission and Department of Insurance to study the impact of these changes by December 31, 2030.
  • Adds new information about accidents and insurance claims to annual reports submitted by the Public Utilities Commission starting in 2026.
  • Includes data on average ride fares in future reports from the Public Utilities Commission.

Who It Names or Affects

  • Ride-share companies like Uber and Lyft
  • Drivers who work for ride-share companies

Terms To Know

Transportation network company
A company that uses an app to connect passengers with drivers in personal vehicles.
Uninsured motorist coverage
Insurance that covers injuries or damage when a driver hits you and does not have insurance.

Limits and Unknowns

  • The new rules only take effect if another bill, AB 1340, also passes.
  • Future reports may show whether these insurance requirements are fair for both companies and drivers.

Bill History

  1. 2025-10-03 California Legislative Information

    Chaptered by Secretary of State. Chapter 314, Statutes of 2025.

  2. 2025-10-03 California Legislative Information

    Approved by the Governor.

  3. 2025-09-17 California Legislative Information

    Enrolled and presented to the Governor at 2 p.m.

  4. 2025-09-10 California Legislative Information

    Assembly amendments concurred in. (Ayes 39. Noes 0. Page 2835.) Ordered to engrossing and enrolling.

  5. 2025-09-09 California Legislative Information

    From committee: That the Assembly amendments be concurred in. (Ayes 7. Noes 0. Page 2753.)

  6. 2025-09-08 California Legislative Information

    From committee: Be re-referred to Com. on INS. pursuant to Senate Rule 29.10(d). (Ayes 5. Noes 0. Page 2628.) Re-referred to Com. on INS.

  7. 2025-09-08 California Legislative Information

    Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(d).

  8. 2025-09-08 California Legislative Information

    In Senate. Concurrence in Assembly amendments pending.

  9. 2025-09-08 California Legislative Information

    Read third time. Passed. (Ayes 77. Noes 0. Page 2983.) Ordered to the Senate.

  10. 2025-09-05 California Legislative Information

    Coauthors revised.

  11. 2025-09-03 California Legislative Information

    Read second time. Ordered to third reading.

  12. 2025-09-02 California Legislative Information

    Read second time and amended. Ordered to second reading.

  13. 2025-08-29 California Legislative Information

    From committee: Do pass as amended. (Ayes 11. Noes 0.) (August 29).

  14. 2025-08-20 California Legislative Information

    August 20 set for first hearing. Placed on APPR. suspense file.

  15. 2025-07-18 California Legislative Information

    Read second time and amended. Re-referred to Com. on APPR.

  16. 2025-07-18 California Legislative Information

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (July 16).

  17. 2025-07-17 California Legislative Information

    Assembly Rule 63 suspended. (Ayes 49. Noes 15. Page 2578.)

  18. 2025-07-16 California Legislative Information

    From committee: Do pass and re-refer to Com. on C. & C. (Ayes 16. Noes 0.) (July 16). Re-referred to Com. on C. & C.

  19. 2025-07-14 California Legislative Information

    Joint Rule 62(a) suspended.

  20. 2025-07-10 California Legislative Information

    Assembly Rule 56 suspended.

  21. 2025-06-30 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on INS.

  22. 2025-06-16 California Legislative Information

    Referred to Coms. on INS. and C. & C.

  23. 2025-05-28 California Legislative Information

    In Assembly. Read first time. Held at Desk.

  24. 2025-05-27 California Legislative Information

    Read third time. Passed. (Ayes 39. Noes 0. Page 1249.) Ordered to the Assembly.

  25. 2025-05-13 California Legislative Information

    Read second time. Ordered to third reading.

  26. 2025-05-12 California Legislative Information

    From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

  27. 2025-05-02 California Legislative Information

    Set for hearing May 12.

  28. 2025-04-30 California Legislative Information

    Read second time and amended. Re-referred to Com. on APPR.

  29. 2025-04-29 California Legislative Information

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 15. Noes 0. Page 919.) (April 28).

  30. 2025-04-24 California Legislative Information

    Set for hearing April 28.

  31. 2025-04-23 California Legislative Information

    Re-referred to Coms. on TRANS. and APPR.

  32. 2025-04-22 California Legislative Information

    From committee: Do pass and re-refer to Com. on RLS. (Ayes 16. Noes 0. Page 810.) (April 21). Re-referred to Com. on RLS.

  33. 2025-04-10 California Legislative Information

    Set for hearing April 21.

  34. 2025-03-26 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on E., U & C.

  35. 2025-02-26 California Legislative Information

    Referred to Com. on E., U & C.

  36. 2025-02-14 California Legislative Information

    From printer. May be acted upon on or after March 16.

  37. 2025-02-13 California Legislative Information

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 371, Cabaldon.
Transportation network companies: insurance coverage.
Existing law provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission and includes specific requirements applicable to transportation network companies and their participating drivers. Existing law defines transportation network companies as certain organizations that, using an online-enabled application or platform, connect passengers with drivers using a personal vehicle. Existing law imposes specified requirements for liability insurance coverage on transportation network companies and their drivers, including a requirement that the insurance coverage provide for uninsured motorist coverage and underinsured motorist coverage in the amount of $1,000,000 from the moment a passenger enters the vehicle of a participating driver until the passenger exits the vehicle. Under existing law, that coverage may be satisfied by insurance maintained by
the participating driver, the transportation network company, or a combination of insurance maintained by the participating driver and transportation network company.
This bill would lower that amount to $60,000 per person and $300,000 per incident. The bill would also make the transportation network company responsible for maintaining the uninsured motorist coverage and underinsured motorist coverage.
The bill would require the commission and the Department of Insurance to collaborate on a study of the impacts of the requirements established for uninsured motorist coverage and underinsured motorist coverage to assess whether those requirements are appropriate to the risk of transportation network company
services, and to report the findings of this study to specified committees of the Legislature on or before December 31, 2030.
Existing law requires the commission to develop, publish, and annually update a report containing specified information, including, among other things, the commission’s annual work plan and an accounting of the commission’s transactions and proceedings from the prior year. Existing law requires the commission to submit that report to the Governor and Legislature no later than February 1 of each year.
This bill would require the report submitted on or before February 1, 2026, to also contain certain information regarding automobile accidents reported to the commission by transportation network companies and uninsured motorist and underinsured motorist claims resulting from those accidents, as specified.
The bill would require the report submitted on or before February 1, 2027, to specify the average transportation network company rider fare paid during certain time periods, as provided.
This bill would make the operation of its provisions contingent upon the enactment of AB 1340 of the 2025–26 Regular Session.

Current Bill Text

Read the full stored bill text 
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