Christopher Cabaldon, a state senator from West Sacramento, said that Senate Bill 371 (SB 371) would reduce insurance mandates for rideshare drivers. This move, according to supporters, aims to lower costs for both drivers and riders. Cabaldon made this statement during an Assembly Insurance Committee hearing.
“We, the Legislature, set the insurance limits for Uber and Lyft and other rideshare companies a little over a decade ago, when the sector was brand new,” said Cabaldon. “Rideshare is now one of the most significant costs that Californians face in their transportation options if they don’t own a car. Our efforts here in this bill are to try to reduce the cost of insurance for the rides and therefore significantly reduce the cost of the fares for the riders. This bill takes the limits that were put in place as an interim — it’s quote-unquote, anybody’s guess — approach a little over a decade ago and replaces them with these amendments.”
The California Public Utilities Commission issued Decision 13-09-045 in 2013, which formally established the category of transportation network companies (TNCs). This regulatory decision created new rules for app-based services like Uber and Lyft, requiring them to obtain permits, conduct driver background checks, and carry specified levels of insurance. It marked a foundational shift in how the state governs rideshare services.
According to a July 16, 2025 analysis from the Assembly Insurance Committee, TNCs are currently the only class of charter-party carriers in California required by statute to carry $1 million in uninsured and underinsured motorist (UM/UIM) coverage. SB 371 proposes reducing these statutory minimums to $100,000 per person and $300,000 per incident. The proposal cites cost savings and alignment with risk exposure as reasons for the change.
A study conducted in 2024 by the Berkeley Research Group concluded that California’s $1 million UM/UIM mandate for rideshare companies may significantly increase ride fares, contribute to excessive litigation, and potentially reduce access for low-income users. The analysis was based on over 100,000 aggregated bodily injury claims from Uber and Lyft between Q4 2020 and Q3 2022 in California and Illinois.
Cabaldon was elected to the California State Senate in 2024 after more than two decades as Mayor of West Sacramento. In his official candidate statement from that year, he emphasized priorities such as affordability, housing, infrastructure, and mobility. He particularly highlighted the importance of future-ready transportation policy for working Californians navigating a rapidly changing economy.
