Senate Insurance Committee concurs with Assembly amendments to SB 371, lowering rideshare uninsured/underinsured limits

At a special meeting of the California State Senate Insurance Committee, members voted to concur in Assembly amendments to Senate Bill 371, the rideshare insurance reform authored by Senator Cabaldon. The amendments reduce the law's uninsured/underinsured motorist (UM/UIM) coverage levels for transportation network companies (TNCs) and add annual reporting and rider-fare transparency requirements.

The move aims to lower costs for rideshare users while preserving protections for drivers. “This is a huge win for affordability in California,” John Finley of Uber told the committee in support. Malcolm McFarland of Lyft said the measure “represents a historic compromise for Californians, strengthening affordability and protecting gig workers.”

Senator Cabaldon told the committee he focused his remarks on the assembly amendments and the need to rebalance costs that have contributed to high fares in many parts of California. He said the original rideshare-era requirement was added quickly more than a decade ago and has since raised costs that appear in rider fares. The assembly amendments lower the previously required UM/UIM coverage levels from $1,000,000 to $600,000 per injured person and $300,000 per incident/vehicle, and add TNC reporting obligations intended to make fare impacts transparent.

Committee supporters and the bill author said the changes were negotiated to ensure riders benefit through lower fares while also protecting drivers. The amended language, Cabaldon said, includes strengthened reporting so the state can compare fares and total costs to riders before and after the change and hold companies accountable if needed. Cabaldon also tied SB 371 to AB 1340 in the Assembly, a separate bill that would permit rideshare drivers to organize and bargain on a sectoral basis; committee members emphasized SB 371 is intended to work in tandem with that collective-bargaining measure.

During committee testimony, representatives from both major TNCs urged the committee to approve the amendments. John Finley of Uber said the company supported the amendments and thanked the bill’s author; Malcolm McFarland of Lyft said the bill will help keep services affordable and called the package a compromise that protects gig workers.

Senators speaking on the measure praised stakeholder negotiations and said the bill includes guardrails. A senator on the committee noted the bill’s reporting requirements will provide data to monitor any unintended effects and allow the Legislature to revisit the policy if necessary. Committee members also acknowledged the bill’s contingency: several speakers noted SB 371 would not move forward unless the companion Assembly bill (AB 1340) becomes effective on Jan. 1 of the year specified in that bill.

The committee moved to concur in the Assembly amendments; Senator Caballero made the motion. The motion carried on a recorded roll call with members recording aye votes; no no-votes or abstentions were recorded during the roll call. The committee chair thereafter adjourned the special hearing.

The committee also took a moment to recognize long-serving legislative staffer Tim Conahan, who the committee said is retiring after decades of service. Members offered thanks for his work supporting the committee.

SB 371 now proceeds with the committee's concurrence in the Assembly amendments; further floor action and the status of AB 1340 will determine whether the amended language takes effect as paired legislation.