Governor Gavin Newsom of California announced the passage of SB 371, describing it as a significant labor and industry agreement aimed at empowering drivers and enhancing rideshare affordability for Californians. This statement was released in a press announcement.
“This is a historic agreement between workers and business that only California could deliver,” said Governor Newsom. “Labor and industry sat down together, worked through their differences, and found common ground that will empower hundreds of thousands of drivers while making rideshare more affordable for millions of Californians. It’s proof that California can do big things, tackle tough issues, and improve peoples’ lives.”
According to CalMatters, California’s SB 371 was passed in September 2025 as part of a legislative package related to unionization rights for rideshare drivers. The bill reduces uninsured/underinsured motorist coverage requirements from $1,000,000 to $60,000 per person and $300,000 per incident. Lawmakers argue that this change could lower fares by reducing insurance costs, though critics caution it may increase consumer risk in accidents.
CalMatters further reports that approximately 800,000 ride-hail drivers in California are expected to be impacted by the SB 371 and AB 1340 package. Millions of riders who rely on services like Uber and Lyft will also be affected. Supporters point to data indicating that insurance costs constitute about 45% of a typical Los Angeles fare and around $6 per ride statewide, suggesting the law could reduce costs for consumers.
In Florida, insurance and tort reforms from 2023–2024 are showing effects in 2025. Milliman reports that average rate increases have decreased from 21% in 2023 to just 0.2% projected for 2025. Major insurers have filed decreases including −10.5% at GEICO, −8.1% at Progressive, and −6% at State Farm due to lower litigation costs and stabilized markets.
Newsom has served as the governor of California since 2019 after previously holding positions as lieutenant governor from 2011 to 2019 and mayor of San Francisco from 2004 to 2011. His policy priorities include housing, climate change, and affordability. In 2025, he is considering major legislation such as SB 371 and energy transition packages.
