# California cuts Uber insurance coverage to $60,000

> California's new law slashes Uber riders' crash insurance to $60,000 per person.
- Title: California cuts Uber insurance coverage to $60,000 · Inc
- Summary: California's new law slashes Uber riders' crash insurance to $60,000 per person. California's law reduces Uber riders' uninsured motorist coverage from $1…
- Keywords: california, uber, uninsured motorist coverage, insurance, employees, rideshare, law, coverage, texas, robotaxis, spinal cord injury, federal transportation bill
- Source: Inc — https://inc.com/angel-reyes/who-pays-when-your-employees-uber-crashes/91428261
- Read time: 1 min
- Topics: california, uber, uninsured motorist coverage, insurance, employees, rideshare, law, coverage, texas, robotaxis, spinal cord injury, federal transportation bill
## California insurance coverage cut
California reduced Uber riders' uninsured motorist coverage from $1 million to $60,000 per person ($300,000 per incident) in a law signed by Governor Newsom in October 2025.
## Uber backed the law
Uber supported the law but claimed insurance savings would be passed to consumers without publishing fare data to back up the claim.
## California's coverage cut impact
The cut shifts crash costs from rideshare platforms to employees, their insurers, and sometimes companies, as Uber bought back $3 billion of its stock in the same quarter.
## Federal transportation bill amendment
A House committee added an amendment to the federal transportation bill to strip away vicarious liability, making rideshare companies liable only for gross negligence.
## Texas rideshare coverage
Texas law allows Uber to have no uninsured motorist coverage, so riders get nothing if the driver isn't at fault, but still have Uber's $1 million policy for crashes during trips.
## Robotaxis face thin coverage
Waymo and Tesla's robotaxis in Texas inherit the same thin coverage as Uber, operating under a 2025 Texas law that treats them as rideshare companies.
## Three moves for companies
Companies should tell employees not to waive coverage, lock down fault evidence early, and opt out of robotaxi arbitration to protect against thin coverage.
## Key takeaway

California's law reduces Uber riders' uninsured motorist coverage from $1 million to $60,000 per person, shifting costs to employees and insurers.