California’s insurance landscape is changing with the new California insurance law, which alters how coverage applies after rideshare and car accidents. At Dhanjan Car Accident and Injury Lawyers of Fresno, we help injured victims understand these changes and secure the compensation they deserve. The 2025 reforms lower coverage minimums for transportation network companies (TNCs) like Uber and Lyft, shift liability standards, and create new collective bargaining rights for drivers. For Fresno residents, these updates could significantly impact recovery after a serious crash.

Recent Changes in Insurance Coverage in California

California’s new rules stem from a legislative compromise that combines Senate Bill 371 (SB 371) and Assembly Bill 1340 (AB 1340). SB 371 cuts insurance limits for TNCs, while AB 1340 gives drivers the right to unionize.

SB 371: Insurance changes

• Lowered coverage: This law reduces uninsured/underinsured motorist (UM/UIM) coverage for TNCs from $1 million to $60,000 per person and $300,000 per accident.
• Potential benefits: Rideshare companies claim the change lowers insurance costs and may reduce ride prices.
• Potential risks: Opponents warn the reduced coverage could leave severely injured victims undercompensated, forcing individuals and hospitals to absorb medical costs.

AB 1340: Driver rights

• Collective bargaining: The Transportation Network Company Drivers Labor Relations Act grants rideshare drivers the right to form and join unions, negotiate wages, deactivation rules, and benefits such as paid leave.
• Good faith negotiations: It requires TNCs to bargain sincerely with recognized unions.
• Enforcement: The California Public Employment Relations Board oversees compliance and dispute resolution.

Together, SB 371 and AB 1340 form a compromise that allows drivers to gain organizing rights, while companies secure major insurance reductions.

Key Insurance Changes Under SB 371

According to California SB 371, rideshare companies must now maintain at least $60,000 per person and $300,000 per incident in UM/UIM coverage, down from the previous $1 million requirement. This drastic reduction means passengers, pedestrians, and motorists injured during active rides may face limited compensation, even in severe crashes.

The new law places responsibility for maintaining these reduced limits on the rideshare companies rather than individual drivers. However, victims may face complex claim disputes when multiple insurance policies overlap. For Fresno residents, knowing how these coverage layers work, depending on whether a driver is waiting for a ride request or transporting a passenger, can make a significant difference in recovery.

Why Are These Changes Relevant for Accident Victims?

For injured victims, the new California insurance law narrows available coverage after a rideshare or car accident. Reducing protection from $1 million to $60,000 per person leaves many unable to cover medical care, rehabilitation, or lost income. Victims in Fresno may now need to combine multiple recovery sources:

• Personal auto or health insurance
• The rideshare driver’s individual policy
• The reduced TNC coverage under SB 371
• Third-party claims against negligent drivers

These changes make recovery more complicated. Coordinating multiple insurance layers often requires legal help to identify who pays and in what order. Without swift action, victims risk missing claim deadlines or receiving less than they deserve.

What to Do If You’re Injured in a Rideshare Accident Based on the New Law?

Understanding how to respond after a rideshare crash under the new law can protect your health, strengthen your claim, and preserve crucial evidence. Victims should:

1. Call emergency services and obtain a police report to document the crash.
2. Collect evidence, including photos, witness details, and rideshare app records.
3. Report the accident through the rideshare platform, but avoid detailed fault statements.
4. Seek medical attention promptly, since delayed care can weaken a claim.
5. Consult a Fresno car accident lawyer familiar with SB 371 and coverage layers.

Coverage changes based on the driver’s app status. If a driver waited for a ride request, the coverage differs from when a passenger was onboard. For instance, a passenger injured by another driver once had access to $1 million in UM/UIM coverage but now faces a $60,000 limit. This reduction can leave substantial medical expenses unpaid. Prompt legal help ensures every insurer receives notice and all policy options are reviewed before settlement discussions begin.

Contact a Fresno Car Accident Lawyer Today for a Free Consultation

Insurance reform may lower corporate costs, but it increases financial pressure on accident victims. At Dhanjan Car Accident and Injury Lawyers of Fresno, we help accident victims navigate the new California insurance law and pursue the compensation they deserve. Call us at (559) 342-2000 or contact us online for a free consultation today. Our team reviews all coverage options, determines liability, and handles every step of your claim.