California Senate Bill SB371

California 2025-2026 Regular Session

• Introduced: 2/13/25
• Refer: 2/26/25
• Refer: 3/26/25
• Report Pass: 4/22/25
• Refer: 4/22/25
• Refer: 4/23/25
• Report Pass: 4/29/25
• Refer: 4/30/25
• Engrossed: 5/27/25
• Refer: 6/16/25
• Refer: 6/30/25
• Report Pass: 7/16/25
• Refer: 7/16/25
• Report Pass: 7/18/25
• Refer: 7/18/25
• Report Pass: 8/29/25
• Refer: 9/8/25
• Enrolled: 9/10/25
• Chaptered: 10/3/25
• Passed: 10/3/25

Caption

An act to amend Section 5433 of, and to add and repeal Sections 918.3 and 5436 of, the Public Utilities Code, relating to transportation.

Summary

SB 371 revises California’s transportation network company (TNC) insurance rules, primarily by reducing the required uninsured motorist and underinsured motorist coverage for passengers from $1 million to $60,000 per person and $300,000 per incident. The bill also shifts responsibility for that coverage to the TNC itself, making it the sole obligation of the company during the passenger-ride period, while leaving the separate $1 million liability coverage framework in place for other phases of TNC operation. The bill adds a new reporting requirement for the Public Utilities Commission (PUC), requiring accident and claims data in the 2026 annual report and average rider fare data in the 2027 report. It also directs the PUC and the Department of Insurance to study the impact of the revised UM/UIM requirements and report back to the Legislature by December 31, 2030. Those study and reporting provisions are temporary and are repealed or become inoperative after specified dates. The bill is also contingent on enactment of AB 1340 of the 2025-26 Regular Session.

Impact

SB 371 amends Public Utilities Code Section 5433, which governs insurance requirements for transportation network companies and participating drivers, by lowering passenger UM/UIM coverage limits and assigning that coverage obligation to the TNC rather than allowing it to be satisfied by the driver, the company, or a combination. It also adds Sections 918.3 and 5436 to require a statewide study of the insurance requirements and enhanced PUC reporting on accidents, claims, and average rider fares. The bill affects TNCs, their insurers, participating drivers, the PUC, and the Department of Insurance, while preserving existing primary liability coverage requirements and the broader liability exposure of TNCs in accident claims.

Sentiment

The bill appears to have been broadly supported in the Legislature, with unanimous or near-unanimous votes at each recorded stage and no recorded opposition in the provided vote history. The legislative intent section suggests the measure was framed as a way to generate savings from reduced insurance costs and reinvest those savings in the welfare of drivers and riders. Overall, the recorded history indicates a favorable, consensus-driven reception rather than a divided debate.

Contention

The main policy tension in SB 371 is between lowering insurance costs for transportation network companies and preserving strong financial protection for passengers injured in TNC-related crashes. Supporters appear to have emphasized affordability, cost savings, and reinvestment in drivers and riders, while the reduced UM/UIM limits may raise concerns for consumer advocates, injury claimants, and insurance stakeholders who favor higher coverage levels. Another point of concern is the bill’s reliance on future study and reporting to evaluate whether the new limits are appropriate, which suggests lawmakers wanted additional data before treating the reduced coverage structure as permanent.