Sen. Cabaldon on rideshare insurance overhaul: 'SB 371 will cut fares by eliminating outsized insurance requirements'

State Senator Christopher Cabaldon of Yolo County has highlighted the financial strain that rising rideshare fares are placing on Californians. In a recent press release, he said that millions rely on these services for essential trips.

"Millions of Californians now depend on rideshare services for essential trips to work, medical appointments, and the grocery store,” said Senator Christopher Cabaldon (D‑Yolo," said Cabaldon. "Fare increases are making this vital transportation service more expensive and forcing more families to make hard choices to stay home or cut other essentials. SB 371 will cut fares by eliminating outsized insurance requirements that don't apply to any other forms of transportation, such as taxis, buses, or limos."

SB 371, introduced by Cabaldon in February 2025, is part of an initiative to update California's insurance mandates for rideshare companies. Legislators supporting the bill argue that existing mandates have not kept pace with how Transportation Network Companies (TNCs) like Uber and Lyft are now used, particularly by low-income and transit-dependent populations. According to Taheripour Law, the bill responds to consumer and labor advocate pressure to make rideshare services more affordable and competitive with taxis and buses.

Currently, California requires all rideshare platforms to carry a minimum of $1 million in uninsured and underinsured motorist coverage during a ride. SB 371 proposes reducing this requirement significantly—to $50,000 per person and $100,000 per occurrence—aligning it more closely with requirements for traditional transportation services like taxis and limousines. The Assembly Committee on Communications and Conveyance notes that the bill also clarifies insurance responsibilities for TNCs unless drivers opt for supplemental coverage.

Rideshare companies and bill sponsors argue that current insurance mandates inflate rider costs, especially in high-density areas. Official bill analysis submitted to the California State Legislature indicates that insurance premiums account for an estimated 30–35% of a typical Uber fare and about $6 per average Lyft trip. These costs disproportionately affect low-income riders, contributing to declining ride frequency among cost-sensitive users.

SB 371 includes an oversight process to ensure the appropriateness of reduced insurance standards over time. The California Public Utilities Commission (CPUC) must report annually on TNC accident data and UM/UIM claims from 2022–2024 and collaborate with the Department of Insurance on a long-term study. The Assembly Insurance Committee states this joint study must be submitted to the legislature by December 31, 2030, allowing future lawmakers to assess any unintended consequences from changes made under SB 371.

Cabaldon began representing Yolo County in 2024 and quickly became known for advocating affordability in essential services. Before his election to the California State Senate, he served as mayor of West Sacramento, focusing on transportation equity, housing, and infrastructure innovation.