Introduction: If you use rideshare apps to get around Santa Ana or head to John Wayne Airport, you need to know about Senate Bill 371. As of January 2026, California has drastically reduced the insurance requirements for rideshare companies.
While the “big brands” are saving money on premiums, you might be the one left holding the bill if an accident happens. Here’s what changed and how to protect yourself.
The 94% Protection Gap
Before 2026, Uber and Lyft were required to carry $1 million in Uninsured/Underinsured Motorist (UM/UIM) coverage. This protected you if a driver with no insurance hit your rideshare vehicle.
Today, that mandatory protection has been slashed to just $60,000 per person.
In Southern California, a single ER visit for a moderate injury can easily exceed $50,000. If you are in a major accident with an uninsured driver, the “app insurance” will likely run out before you even leave the hospital.
How This Affects You (Drivers & Passengers)
- For Passengers: You can no longer rely solely on the app’s policy to cover your medical bills in a hit-and-run or an accident with an uninsured driver.
- For Drivers: Your “Period 1” coverage (when the app is on but you have no rider) remains notoriously thin. If you don’t have a specific Rideshare Endorsement, your personal insurance company could deny your claim entirely.
The Solution: “Gap-Proofing” Your Policy
You don’t have to stop using rideshare; you just need to be smarter than the apps.
- Add a Rideshare Endorsement: It usually costs less than a few lattes a month but ensures your personal policy doesn’t “switch off” the moment you open the Uber app.
- Increase Your Own UM/UIM Limits: Your personal auto policy can often act as a secondary layer of protection even when you are a passenger in someone else’s car.
- Consider an Umbrella Policy: For those who frequently use rideshare or have assets to protect, a $1M Umbrella policy is the ultimate safety net in 2026.
📞 Is Your Current Policy “App-Ready”?
Don’t wait for an accident to find out you’re underinsured. At Starwest Insurance Services, we specialize in finding the specific endorsements that the big “online-only” companies hide in the fine print.
- Call: 714-893-7271
- Get a 5-Minute “Rideshare Audit”
- Same-day quotes for Santa Ana, Westminster, & Cypress