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Senate Insurance Committee concurs with Assembly changes to SB 371 to lower rideshare uninsured/underinsured coverage
Summary
The California State Senate Insurance Committee voted to concur in Assembly amendments to SB 371, a bill that reduces required uninsured/underinsured motorist coverage for transportation network companies and adds annual reporting requirements; passage is contingent on a linked Assembly bill enabling sectoral bargaining.
The California State Senate Insurance Committee voted to concur in Assembly amendments to SB 371, the rideshare insurance bill authored in the Senate by Senator Cabaldon, approving lower uninsured and underinsured motorist coverage limits and new reporting requirements for transportation network companies.
Senator Cabaldon, the measure's Senate author, said the bill is meant to reduce a major cost driver for rideshare fares and to help stabilize driver compensation. “The point of the bill is to make rideshare more affordable, substantially more affordable for Californians who rely on it every day,” Senator Cabaldon said, adding the assembly amendments “right‑size” coverage levels and add transparency and reporting so the Legislature can monitor effects on fares and drivers.
The Assembly amendments change the coverage thresholds the bill would require for TNCs from $1,000,000 (as in earlier versions) to $600,000 per injured person and $300,000 per incident per vehicle, according to Cabaldon's presentation. He told the committee those numbers are closer to coverage required of other for‑hire carriers and that the bill is linked to an Assembly measure enabling rideshare drivers to organize and bargain collectively.
Company representatives who testified supported the amendments. John Finley of Uber said the company “respectfully urge[s] an aye vote,” calling the changes “a huge win for affordability in California.” Malcolm McFarland II, representing Lyft, said SB 371 “represents a historic compromise for Californians, strengthening affordability and protecting gig workers,” and supported the bill and the assembly amendments.
Committee members spoke in favor of the agreement and highlighted two features senators emphasized during the hearing: annual reporting requirements for TNCs intended to show how fares and rider charges change after the law takes effect, and the linkage to the companion Assembly bill (referred to in testimony as AB 1340) that would permit sectoral organizing and collective bargaining for rideshare drivers. Senator Wahab and others noted the bill will not advance unless the partner Assembly bill becomes effective, with one senator stating the companion bill must be effective January 1 for SB 371 to move forward.
After brief committee discussion, Senator Caballero moved to concur in the Assembly amendments. The secretary called the roll and the committee voted in favor; the motion was approved. The committee adjourned after brief remarks acknowledging long‑serving staff.
Pending the companion Assembly bill's enactment, the committee's concurrence sends the amended SB 371 back to the floor with the approved Assembly changes and with the committee's record of support and the newly added reporting requirements intended to allow future legislative review if fare or driver compensation outcomes differ from expectations.
