What Happens When an Uninsured Driver Hits Your Rideshare Vehicle in California?

If an uninsured driver causes a rideshare crash in California, your primary source of compensation shifts to the rideshare company's uninsured motorist (UM) coverage. However, a 2025 law change under Senate Bill 371 significantly reduced the UM coverage Uber and Lyft must carry for passengers, making the legal landscape more complicated than it was before.

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What Uninsured Motorist Coverage Did Uber and Lyft Previously Provide?

Before Senate Bill 371 took effect, California rideshare companies were required to provide $1 million in uninsured motorist coverage when a passenger was in the vehicle, matching their liability coverage during an active ride.

• Passengers previously had access to $1 million in UM coverage if hit by an uninsured driver during a ride
• This coverage applied automatically during Period 3 of the ride without any out-of-pocket cost to the passenger
• Serious injury victims could recover full compensation for catastrophic injuries under the old UM limits
• The $1 million UM limit gave passengers near-identical protection regardless of who caused the crash

How Did Senate Bill 371 Change Rideshare UM Coverage for Passengers?

Senate Bill 371 (Chapter 314, Statutes of 2025) reduced the required uninsured motorist coverage for rideshare passengers from $1 million to $60,000 per person when the at-fault driver is uninsured.

• Passengers injured by uninsured drivers now face a UM limit of $60,000 per person instead of $1 million
• The $1 million liability coverage when the rideshare driver is at fault remains fully intact
• The reduction applies only to scenarios where an uninsured third-party driver causes the crash
• Passengers with severe injuries may face a significant compensation gap between their damages and the $60,000 UM limit

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What Other Sources of Compensation Are Available When UM Coverage Falls Short?

When the $60,000 UM limit does not cover your full damages, California law provides several additional avenues to pursue remaining compensation.

• Your own personal auto policy's UM/UIM coverage applies as secondary coverage over the rideshare company's limit
• Health insurance covers medical bills while you pursue the injury claim
• If the rideshare driver was partially at fault, the $1 million liability policy may apply alongside the UM claim
• A lawsuit against the uninsured driver directly remains an option, though collectability is often limited

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How Do You File a UM Claim After a Rideshare Accident in California?

Filing a UM claim requires notifying the rideshare company's insurer within the policy's reporting deadlines while simultaneously documenting your injuries and damages.

• Report the accident to the rideshare company through the app and request the insurance information for the applicable period
• Document the at-fault driver's lack of insurance with the police report, which should confirm no insurance was presented
• File a UM claim with Uber's or Lyft's insurer and your own insurer simultaneously to preserve both claims
• Do not accept a UM settlement from either insurer before your full medical picture is known

Senate Bill 371 created a new coverage gap that leaves some rideshare passengers without adequate protection. The rideshare accident attorneys at Avian Law Group understand the new landscape and fight to maximize recovery from every available source. Contact our personal injury lawyers today for a free consultation about your rideshare UM claim.

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