Ramona Prieto, director of policy for Uber, addressed the California Senate Insurance Committee regarding a mandate that requires $1 million in uninsured/underinsured motorist coverage. She said that this requirement is inflating ride costs and argued that SB 371 offers a targeted reform to alleviate this burden.
"Today, each trip is covered by multiple forms of insurance… and lastly, $1M in Uninsured and Underinsured Motorist Coverage (UM/UIM) … No other vehicles on California roads are required to carry this," said Prieto. "In Los Angeles County, up to 45% of the fare goes just to cover government mandated insurance. Insurance is a ‘pass through' cost directly to riders … reflected in the rider receipt as a booking fee. SB 371 … defines that drivers will never have to carry this policy. And ensures that the rideshare UM/UIM policy will be primary to other like policies."
SB 371 was introduced by Senator Christopher Cabaldon in February 2025. The bill aims to amend California’s decade-old Transportation Network Company insurance requirements. Current law mandates $1 million in uninsured/underinsured motorist coverage for rideshare trips—a figure established in 2014 when ridesharing was still new—and has remained unchanged despite the industry's growth.
According to a study by Berkeley Research Group, 96% of uninsured/underinsured motorist claims in California settle for less than $100,000. This suggests that the $1 million coverage far exceeds realistic needs. The study also warns that excessive coverage has encouraged litigation, with 85% of such claims involving attorneys and average payouts exceeding $300,000—compared to Illinois’s average payouts of $30,000 where coverage limits are lower.
Legislative analysis indicates that in Los Angeles County, up to 45% of a rideshare fare can be attributed solely to mandatory insurance costs. Statewide, this figure is approximately 32%. Uber and Lyft argue that this policy inflates fares and reduces driver earnings, prompting the proposal of SB 371 to align limits with more common-sense coverage thresholds.
Prieto serves as Head of Public Policy & Communications for Uber’s U.S. West operations and has led the company’s policy efforts across California since 2021. Before joining Uber, she worked as Policy Director on U.S. Senator Alex Padilla’s transition team and spent six years in public policy roles at Pacific Gas and Electric Company.