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SB 371

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2025-2026 Regular Session Introduced by Brian Strickland

SB 371 reduces insurance requirements for California TNCs, shifting coverage responsibility to companies, aiming to lower costs for drivers and riders while ensuring safety.

Senate Read and Referred
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Bill Summary · SB 371

Summary of SB 371: Transportation Network Companies - Insurance Coverage

Overview

Bill Number: SB 371
Introduced: February 13, 2025
Status: Chaptered by Secretary of State. Chapter 314, Statutes of 2025.
Author: Cabaldon
Coauthors: Berman, Weber, Pierson, Hoover, Caloza, Wicks, Arreguín, Valencia, Ahrens, Richardson, Michelle Rodriguez

SB 371 aims to amend existing insurance requirements for transportation network companies (TNCs) and their drivers in California. The bill modifies liability insurance coverage requirements and mandates a study to assess the appropriateness of these insurance requirements.

Purpose and Intent

The primary intent of SB 371 is to ensure that financial savings from reduced insurance expenditures for TNCs are reinvested to enhance the economic stability and welfare of both drivers and riders.

Key Provisions

  1. Insurance Coverage Changes:

    • The bill reduces the required uninsured motorist coverage and underinsured motorist coverage from $1,000,000 to:
      • $60,000 per person
      • $300,000 per incident
    • The responsibility for maintaining this coverage shifts entirely to the transportation network company, rather than allowing it to be satisfied by a combination of driver and company insurance.

  2. Study Requirement:

    • The California Public Utilities Commission (CPUC) and the Department of Insurance are required to collaborate on a study to evaluate the impacts of the new insurance requirements. This study must assess whether the coverage amounts are appropriate for the risks associated with TNC services.
    • The findings of this study must be reported to the Assembly and Senate Committees on Insurance by December 31, 2030.

  3. Reporting Requirements:

    • The CPUC must include additional information in its annual reports:
      • By February 1, 2026, the report must include data on automobile accidents reported by TNCs and claims related to uninsured and underinsured motorist coverage.
      • By February 1, 2027, the report must specify the average fare paid by TNC riders during certain time periods.

  4. Contingency Clause:

    • The implementation of SB 371 is contingent upon the enactment of AB 1340 from the 2025–26 Regular Session.

Impact

  • Affected Parties: The bill primarily affects transportation network companies, their drivers, and passengers using TNC services.
  • Financial Implications: The reduction in required insurance coverage may lead to lower operational costs for TNCs, which could potentially translate to lower fares for riders. However, the shift in responsibility for maintaining insurance coverage may also impact how TNCs manage their risk and insurance strategies.

Procedural Aspects

  • The bill was approved by the Governor on October 3, 2025, and is now law.
  • It underwent several amendments and committee reviews before being finalized.

This summary provides a comprehensive overview of SB 371, highlighting its purpose, key provisions, and potential impacts on transportation network companies and their stakeholders.

Compiled from official sources — confirm details with the bill’s official record.

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