What insurance must rideshare drivers carry in California?

What the Law Says

California law mandates layered insurance coverage for rideshare drivers depending on their activity status — whether logged off, waiting for a ride request, or actively transporting a passenger. The California Public Utilities Commission (CPUC) and Insurance Code establish strict minimums and timing requirements.

Rideshare drivers must maintain both personal auto insurance and the commercial insurance provided by the rideshare company (e.g., Uber, Lyft). Coverage is divided into three statutorily defined periods:

Period 1: Driver is logged into the app but hasn’t accepted a ride request. Minimum required coverage is $50,000 per person / $100,000 per accident for bodily injury, and $30,000 for property damage.

Period 2: Driver has accepted a ride request and is en route to pick up the passenger. Same $50,000/$100,000/$30,000 minimums apply.

Period 3: Driver has a passenger in the vehicle. Minimum coverage jumps to $1,000,000 per incident for bodily injury and property damage combined.

The rideshare company’s commercial policy must cover all three periods without gaps — meaning drivers are protected 24/7 while using the app for ridesharing purposes.

Statutory Text

A transportation network company shall maintain, for each driver, automobile liability insurance… in the amount of one million dollars ($1,000,000) per incident… during the period in which the driver is engaged in a prearranged ride.

— Cal. Pub. Util. Code § 5429 — Automobile Liability Insurance Requirements

Statutory Text

During the period in which the driver is logged into the digital network but has not yet accepted a prearranged ride request… the transportation network company shall maintain… liability insurance in the amount of fifty thousand dollars ($50,000) per person and one hundred thousand dollars ($100,000) per accident for bodily injury… and thirty thousand dollars ($30,000) for property damage.

— Cal. Pub. Util. Code § 5429(a)(1)

Sources