Christopher Cabaldon, a state senator, announced the passage of SB 371, which aims to make rideshare services more affordable by removing excessive insurance mandates. He pointed to Florida as an example where similar reforms have been successful. This statement was made in a press release.
“Millions of Californians now depend on rideshare services for essential trips to work, medical appointments, and the grocery store,” said Cabaldon, California State Senator. “Fare increases are making this vital transportation service more expensive and forcing more families to make hard choices to stay home or cut other essentials. SB 371 will cut fares by eliminating outsized insurance requirements that don’t apply to any other forms of transportation, such as taxis, buses, or limos.”
California’s SB 371 is presented as a measure to improve affordability by adjusting rideshare insurance requirements and introducing new transparency rules. According to a July 16, 2025 Assembly analysis, the bill proposes reducing uninsured/underinsured motorist coverage for transportation network companies from $1,000,000 to as low as $50,000 per person/$100,000 per incident during the passenger portion of a trip. Amendments are being considered to raise these limits. The bill also directs the California Public Utilities Commission (CPUC) to collect and publish data on accidents, insurance, and claims, with a sunset clause in 2031 to evaluate whether insurance savings benefit drivers and riders.
Over the past five years, rideshare fares have increased significantly, prompting California’s focus on affordability in 2025. According to the Los Angeles Times’ summary of Gridwise’s 2025 Gig Mobility data, the median Uber/Lyft fare in 2024 rose by 7.2% year over year to $15.99 nationally. More than 72% of surveyed consumers indicated they would reduce usage if prices continued to rise—pressures that lawmakers cited when combining SB 371’s insurance changes with broader gig economy reforms. The UCLA Labor Center reported that from February 2019 to April 2022 median passenger fares increased by approximately 50%, while median driver pay rose by 31%, highlighting a trend of rising customer costs in California metros like Los Angeles and San Francisco.
Evidence from Florida suggests that reforms in the insurance system can lead to lower consumer prices for auto coverage—a point referenced in California’s affordability discussions. According to the Florida Office of Insurance Regulation (OIR), the state’s top five private auto insurers projected an average rate change of -6.5% for 2025—down from +4.3% in 2024 and +31.7% in 2023—with officials attributing this improvement to recent litigation and insurance reforms that reduced loss costs. While Florida’s framework is not specific to rideshares, its standardized transportation network company (TNC) insurance law since 2017 and the projected rate environment for 2025 are used by proponents like Cabaldon to argue that targeted insurance changes such as those proposed in SB 371 can alleviate upward price pressures.
Cabaldon is a Democratic state senator representing California’s 3rd Senate District who took office on December 2, 2024. His official biography notes his previous two-decade tenure as mayor of West Sacramento (1998–2020), where he led significant community redevelopment efforts and received national recognition for livability initiatives. His background includes statewide education roles and leadership within California’s community college system and higher-education policy—experience that informs his legislative work on affordability and consumer protection.
