John Roach, Esq. | September 18, 2026 | California Law \ Car Accidents
UIM Coverage After SB 371: Why Your Own Insurance Now Matters More Than Ever in California
Senate Bill 371 fixed the headline number everyone worried about: Uber and Lyft’s $1 million commercial liability policy stayed intact when the new rideshare insurance rules took effect. What got far less attention is what SB 371 did to the uninsured and underinsured motorist coverage riding underneath that policy. Effective January 1, 2026, UM/UIM coverage tied to rideshare periods dropped to $60,000 per person and $300,000 per incident. That is a real cut, and it lands hardest on the people least likely to know it happened until they need it.
I covered the broad SB 371 picture in an earlier post on how Bay Area injury cases are actually valued. This post is narrower and, for most people reading it, more urgent: what does the new UM/UIM math mean for your own coverage, and why can you no longer assume a rideshare company’s insurance, or the at-fault driver’s insurance, will be enough if you are seriously hurt.
UM/UIM Coverage, in Plain English
Uninsured motorist (UM) coverage pays when the driver who caused your crash has no insurance at all. Underinsured motorist (UIM) coverage pays when the at-fault driver has insurance, but not enough to cover your damages. Both live on your own auto policy, not the other driver’s — which is exactly why so many people never think about them until it’s too late. You are, in effect, insuring yourself against other people’s bad insurance decisions.
California doesn’t require drivers to carry UM/UIM coverage. It’s offered on every policy, but you can decline it in writing. A lot of drivers do, usually to save a small amount on their premium, without ever running the math on what happens if they’re hit by someone carrying the state minimum — or by a rideshare vehicle during a period with reduced coverage.
What SB 371 Actually Changed
Before SB 371, rideshare UM/UIM coverage during an active trip mirrored the $1 million commercial policy. Since January 1, 2026, that is no longer true. Here is the current structure:
- The $1 million liability policy is unchanged. If an Uber or Lyft driver carrying a passenger, or en route to one, causes a crash, the $1 million commercial policy still applies to injuries the driver caused to others.
- UM/UIM coverage during rideshare periods is now $60,000 per person and $300,000 per incident. This is the coverage that protects you when the other driver — not the rideshare driver — is uninsured or underinsured.
- Period 1 (app on, no ride accepted) coverage is unaffected by this change and continues to follow its own separate, lower liability structure under California’s TNC insurance law.
In practice, this means a rideshare passenger or a driver struck by an uninsured or underinsured third party during an active trip now has a much smaller pool of rideshare-linked UM/UIM coverage to draw from than existed before January 1, 2026.
Why a $300,000 Cap Isn’t as Much as It Sounds
$300,000 sounds like real money until you’re pricing out what a serious injury actually costs. A single surgery with a hospital stay can run well into six figures before rehabilitation even starts. A traumatic brain injury — even one that doesn’t look dramatic on the first scan — can involve months of neurological care, cognitive therapy, and lost income that dwarfs a $300,000 policy limit many times over. I’ve written in detail about how traumatic brain injuries are frequently under-diagnosed at the scene and only reveal their true severity over the following weeks. When a UM/UIM policy limit is the only thing standing between an injured person and years of unpaid medical bills, $300,000 stops looking like a safety net and starts looking like a ceiling.
Why This Falls on Your Own Policy
Here’s the part that catches people off guard: UM/UIM coverage isn’t something you negotiate with the at-fault driver’s insurance company. It comes from your own auto policy — or, if you were a rideshare passenger, from the layered coverage described above. If you’ve declined UM/UIM on your personal policy to save a few dollars a month, and you’re then hit by an underinsured driver, or injured as a rideshare passenger where the new $300,000 cap doesn’t cover your losses, there may be no additional source of recovery beyond whatever the at-fault party’s own limited policy pays.
This is precisely the gap that produced one of my office’s most significant results. In my UIM arbitration case study, I represented a client whose catastrophic injuries far exceeded the at-fault driver’s available liability coverage. Because my client carried adequate UIM coverage on their own policy, and because I built a thorough, well-documented arbitration case proving the true extent of the injuries, I secured a $750,000 recovery through the UIM arbitration process — money that never would have existed if that coverage had been declined or set too low.
How Much UM/UIM Coverage Should You Actually Carry
There’s no single right answer, but here’s how I advise clients to think about it:
- Match or exceed your own liability limits. Many insurers will only sell you UM/UIM coverage up to the same amount as your liability coverage — so if your liability limits are low, your UM/UIM ceiling is low too.
- Consider an umbrella policy. A personal umbrella policy with UM/UIM coverage attached can add a meaningful additional layer of protection for a relatively modest premium increase.
- If you or your family regularly use rideshare apps, understand that the $300,000 per-incident cap during active trips is a shared pool among everyone injured in that incident — multiple injured passengers or bystanders can mean the available coverage per person is even lower than it appears.
- Revisit your coverage after any major life change — a new car, a new driver in the household, or simply a few years since you last reviewed your policy.
The $750,000 Lesson
The arbitration case referenced above is worth returning to because it illustrates exactly how UIM coverage is supposed to work when it’s used correctly. My client’s injuries were catastrophic, but the at-fault driver’s insurance was nowhere near sufficient to cover them. Rather than accepting a settlement capped at the at-fault driver’s limited policy, I pursued a UIM arbitration claim against my own client’s insurer — the process California law provides specifically for situations like this — and proved, through medical documentation, expert testimony, and a genuinely trial-ready presentation, that the injuries warranted a $750,000 recovery.
That result was only possible because the coverage existed in the first place. No amount of legal skill can create UIM coverage that was never purchased.
What You Should Actually Do
- Pull out your current auto insurance declarations page and check whether you have UM/UIM coverage, and at what limits. If you can’t find it or don’t understand it, call your insurance agent and ask directly.
- If you use Uber, Lyft, or similar apps regularly, understand that the coverage protecting you as a passenger changed on January 1, 2026, and is now capped at $300,000 per incident — shared among everyone hurt in that crash.
- Consider increasing your UM/UIM limits or adding an umbrella policy, especially if you have family members who rely on rideshare regularly or drive frequently on Bay Area freeways.
- If you’ve already been injured in a crash — as a driver, passenger, or rideshare user — don’t assume the at-fault driver’s insurance, or the rideshare company’s policy, is the end of the story. There may be UM/UIM coverage available that an insurance adjuster has no incentive to mention.
- Don’t sign a release or accept a “final” settlement offer from any insurance company, including your own, until you understand the full scope of your injuries and every layer of coverage that might apply.
How a UIM Arbitration Actually Works
Unlike a standard injury claim, a UIM claim is technically a dispute with your own insurance company — even though the money at stake exists because of someone else’s negligence. Most California UM/UIM policies require the claim to go through binding arbitration rather than a courtroom trial. That makes the preparation different, but no less serious: the arbitrator still needs to see thorough medical documentation, credible expert opinions on prognosis and future care needs, and a clear picture of how the injury has actually changed the client’s life. Insurance companies — including your own — negotiate very differently with an attorney who has a track record of taking these arbitrations seriously than with someone who accepts the first number offered.
A Mistake I See Often
One of the most common mistakes I see after a serious crash is a victim assuming that because the other driver had insurance, or because they were riding in an Uber, the coverage question is settled. It rarely is. Between the SB 371 rideshare changes, low state-minimum liability limits, and drivers who simply decline optional coverage, the gap between what a victim’s injuries cost and what the at-fault party’s insurance actually pays is common — and it’s exactly the gap UM/UIM coverage exists to fill, if it was purchased in the first place.
Frequently Asked Questions
Does SB 371 affect the $1 million Uber and Lyft liability policy?
No. The $1 million commercial liability policy for injuries an Uber or Lyft driver causes to others remains intact. SB 371 specifically reduced the UM/UIM coverage layered underneath that policy.
I was a passenger in an Uber that was hit by an uninsured driver. What coverage applies?
As of January 1, 2026, the rideshare UM/UIM coverage for that scenario is $60,000 per person and $300,000 per incident, shared among everyone injured in the crash. Depending on your own auto policy, additional coverage may also be available.
Can I decline UM/UIM coverage in California?
Yes, in writing, but I strongly advise against it. UM/UIM coverage is often one of the most valuable, least expensive additions to a policy relative to the protection it provides.
What happens if the at-fault driver has no insurance and I don’t have UM coverage?
Without UM coverage on your own policy, your options for recovery become significantly more limited — often requiring a direct lawsuit against the uninsured driver personally, which is frequently not practical if that person has few assets.
Is a UIM claim against my own insurance company adversarial?
It can be. Even though your insurer isn’t the party that caused the crash, they are still the party paying the claim, and many insurers negotiate UIM claims just as aggressively as a third-party liability claim.
How do I know if I have enough UM/UIM coverage?
A good rule of thumb is to carry UM/UIM limits that match your liability limits, and to reconsider those limits any time your household, vehicles, or rideshare habits change. An insurance agent or attorney can help you evaluate your specific situation.
What should I do if I’m not sure whether UM/UIM coverage applies to my accident?
Speak with an attorney before accepting any settlement. Identifying every applicable layer of coverage — including coverage an insurance adjuster has no obligation to volunteer — is part of what a thorough case investigation is for.
Talk to a San Francisco UIM Coverage Lawyer
If you’ve been seriously injured and you’re not sure whether the at-fault party’s insurance, or a rideshare company’s policy, will be enough to cover your losses, don’t guess. The Law Office of John J. Roach has represented Bay Area accident victims directly since 2009, including UIM arbitration cases that recovered compensation insurance companies never offered voluntarily. Contact my office for a free consultation. Ofrecemos consultas gratuitas en español. I offer free consultations in Spanish.