Field guide
Rideshare Insurance in California: Requirements, Cost (2026)
California rideshare insurance: $1M TNC liability, SB 371 UM/UIM cut to $60,000/$300,000 in 2026, endorsement costs, and the Period 1 gap explained.
The short answer
California requires the strictest rideshare package in the country: $1 million primary liability on every trip, plus uninsured/underinsured motorist coverage that dropped from $1 million to $60,000/$300,000 on January 1, 2026 under SB 371. A personal rideshare endorsement runs about $20-60 per month - roughly 2 to 5 hours of work at $25 per hour - and is what keeps your own car covered between requests.
What does rideshare insurance cost in California?
Endorsements in California typically add $20-60 per month on top of a base policy that is already above the national average; State Farm-style pricing lands at 15-20% above base, and full rideshare policies average about $154 per month nationally (Compare.com). California also has the highest mandated insurance cost per trip: 31% of the average fare (47% in Los Angeles County) - money riders pay, not drivers, but it shapes what the market charges.
California rideshare insurance requirements
Under California law a TNC must maintain at least $1 million in primary liability for death, bodily injury and property damage from the moment a driver accepts a request. Uninsured/underinsured motorist coverage for TNC trips was $1 million until SB 371 cut it to $60,000 per person and $300,000 per incident effective January 1, 2026. While waiting for a request, coverage sits at the standard $50,000/$100,000/$25,000 tier. California personal minimums are 30/60/15.
The Period 1 coverage gap
Period 1 - app on, no request - is where California drivers get hurt: liability is only $50,000/$100,000/$25,000, and collision coverage for your car comes only from your own policy. If your insurer does not recognize rideshare use, a fender bender while waiting for a ping is uncovered. A rideshare endorsement fixes the gap; a rideshare comparison shop is how you find it.
Does your personal policy cover Uber in California?
Not while you are working. California insurers may exclude rideshare activity unless you carry the TNC endorsement; Uber coverage starts only from the moment you accept a request (and provides limited liability while you are available). The single rule that avoids denials: tell your carrier you drive for Uber or Lyft before an accident, not after.
Is rideshare insurance tax deductible?
Yes. Rideshare drivers deduct the business share of auto insurance on Schedule C, and the endorsement - which exists only because of rideshare work - is fully deductible. California drivers also file state returns that follow the same business-expense logic; keep the declarations page showing the TNC endorsement as proof.
Frequently asked questions
Is rideshare insurance mandatory in California?
The law requires TNC coverage ($1 million on-trip), which Uber and Lyft provide. Your own endorsement is not mandated, but it is the only thing covering your vehicle during Period 1 - and California insurers can deny claims if rideshare use was not disclosed.
Did California really cut UM/UIM coverage in 2026?
Yes. SB 371 reduced the TNC uninsured/underinsured motorist requirement from $1 million to $60,000 per person / $300,000 per incident for trips with a passenger, effective January 1, 2026 - one reason Uber reports California insurance costs falling in 2026.
How much of my fare goes to insurance in California?
About 31% of the average rider fare, according to Uber regulatory disclosures - and 47% in Los Angeles County. Riders pay it through fares; drivers pay for it through endorsements and deductibles.
Does the deductible include rideshare miles?
Yes - use the actual expense method or standard mileage to deduct driving, and deduct the insurance premium separately as an actual expense. An accountant can combine both without double counting.
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