The California State Legislature has introduced a measure to lower the required uninsured and underinsured motorist coverage for transportation network company (TNC) drivers involved in accidents.
SB 371 revisits and revises the insurance mandates originally established for TNCs in 2014 under AB 2293, which introduced the $1 million uninsured/underinsured motorist (UM/UIM) coverage threshold. The bill proposes to decrease these levels, citing cost concerns and changing market dynamics. The policy aims to reassess whether the current thresholds remain appropriate given industry maturity and shifting public needs.
According to TrackBill, approximately 60% of current UM/UIM claims would still fall within the lower proposed limits. This suggests that only a minority of incidents would be left with reduced coverage, potentially at higher costs to individuals or third-party insurers. The finding supports the argument that modest reductions may still preserve overall financial protections.
To evaluate future outcomes, SB 371 requires the California Public Utilities Commission (CPUC) to submit aggregated data on TNC claims and accident frequency for the years 2022 through 2024. The information must exclude identifying company names to maintain business confidentiality while still offering a statewide view. This data collection aims to inform further policymaking around insurance standards and safety, according to the California Assembly.
The California State Legislature is a bicameral institution responsible for enacting state laws and setting public policy. It includes the Senate and Assembly, both of which play a key role in reviewing legislation and overseeing implementation.
