Bill > SB371

This bill modifies insurance requirements for transportation network companies (TNCs), such as Uber and Lyft, by reducing the mandatory uninsured and underinsured motorist coverage from $1,000,000 to $60,000 per person and $300,000 per incident, while making the TNC solely responsible for maintaining this coverage. The bill requires the Public Utilities Commission and Department of Insurance to collaborate on a study assessing whether these insurance coverage requirements appropriately match the risk of TNC services, with a report due by December 31, 2030. Additionally, the bill mandates that the commission's annual reports for 2026 and 2027 include specific data, such as the average number of automobile accidents involving TNC drivers, the percentage of accidents resulting in uninsured motorist claims, and the average rider fare during specified time periods. The Legislature intends that any financial savings from reduced insurance expenditures will be reinvested to support drivers and riders. Importantly, the bill's implementation is contingent upon the enactment of another related bill (AB 1340) during the 2025-26 legislative session, and the new reporting and study provisions will automatically expire in 2031 and 2035, respectively.

Budget and Finance, Business and Industry, Transportation and Infrastructure

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB371