CA AB 145: LA Rideshare Claims Change in 2026

A recent California Assembly Bill 145 has significantly reshaped how insurance claims are handled following a car accident involving a rideshare vehicle in Los Angeles, particularly impacting the gig economy. Understanding these changes is critical for anyone involved in a rideshare incident. So, when an Uber crash happens on the bustling 101 Freeway, whose insurance truly pays?

The New Landscape: California AB 145 and Rideshare Insurance

The legal framework governing rideshare accidents has always been a bit of a moving target, but California’s Assembly Bill 145, signed into law last year and effective January 1, 2026, brings much-needed clarity and, frankly, much stronger protection for accident victims. This legislation specifically targets the insurance obligations of Transportation Network Companies (TNCs) like Uber and Lyft, drawing a clear line in the sand regarding coverage. Before AB 145, there were perennial disputes about whether a driver was “on the clock” and what that meant for coverage. Now, the law is explicit.

Under the new statute, codified as California Public Utilities Code Section 5433, rideshare companies are mandated to provide primary liability coverage of at least $1.5 million per incident from the moment a driver accepts a trip request until the trip concludes. This applies whether the driver is en route to pick up a passenger, or actively transporting one. This is a monumental shift. Previously, the “gap” period – when a driver was logged in but hadn’t yet accepted a ride – was a notorious gray area, often leaving accident victims in a precarious position. I had a client last year, before this law took effect, who was hit by an Uber driver logged into the app but waiting for a fare near Dodger Stadium. The personal insurer denied coverage, and Uber’s contingent policy was a nightmare to activate. It was a brutal fight. AB 145 eliminates much of that ambiguity, forcing the TNC to step up.

Who is Affected by the New Legislation?

Virtually everyone involved in the gig economy, specifically ridesharing, is affected. This includes:

• Rideshare Drivers: Your personal auto insurance policy is now unequivocally secondary, or even tertiary, to the TNC’s policy during an active trip. This doesn’t mean you shouldn’t have personal coverage, but it redefines its role.
• Passengers: You are now afforded significantly greater protection. If you’re injured in an Uber crash, the path to compensation through the company’s robust insurance is clearer and more substantial.
• Other Motorists and Pedestrians: If an Uber driver causes an accident, the TNC’s $1.5 million policy is the first line of defense for your injuries and property damage, provided the driver was on an active trip.
• Insurance Companies: Both personal auto insurers and TNC insurers must adjust their policies and claims handling processes to align with the new primary/secondary structure.

The impact on claims processing is profound. We ran into this exact issue at my previous firm in Santa Monica; before 2026, we’d spend weeks arguing with adjusters about whether the driver was “available” or “en route.” This new law cuts through that, focusing on the moment of trip acceptance. It’s a game-changer for accident victims.

What Exactly Changed?

The core change, as outlined in AB 145, is the expansion and clarification of the rideshare company’s primary insurance obligation. Let’s break it down:

1. Active Trip Coverage: From trip acceptance to drop-off, the TNC must provide primary liability coverage of at least $1.5 million for bodily injury and property damage. This is a non-negotiable minimum.
2. “App On” Period (Pre-Acceptance): For the period when a driver is logged into the app but has not yet accepted a ride request, the TNC must provide lower, but still significant, contingent coverage. This typically includes $50,000 for bodily injury per person, $100,000 for bodily injury per accident, and $25,000 for property damage. However, this coverage is contingent, meaning the driver’s personal policy is theoretically primary here. This is still a tricky area, and frankly, it’s where many disputes will continue to arise. My opinion? The “app on” period should have the same robust primary coverage. It’s an operational period for the TNC, plain and simple.
3. No App On: If the driver is not logged into the app, their personal auto insurance is solely responsible. This remains unchanged.

This tiered system, while improved, still requires careful analysis. The key is determining the precise status of the driver at the moment of impact. Was the driver actively navigating to pick up a passenger after accepting a fare for a ride from Hollywood and Vine to LAX? Or were they merely logged in, cruising down Sunset Boulevard, hoping for a ping? These distinctions, while seemingly minor, dictate millions in potential coverage.

Concrete Steps Readers Should Take Following an Uber Crash

If you find yourself involved in a car accident with an Uber or Lyft driver in Los Angeles, whether you’re a driver, passenger, or another motorist, immediate action is paramount. Here’s what you absolutely must do:

For All Parties Involved:

1. Ensure Safety and Seek Medical Attention: Your health is the priority. Move to a safe location if possible. Call 911 immediately if there are injuries. Even if you feel fine, get checked out by paramedics or visit an emergency room like Cedars-Sinai Medical Center. Adrenaline can mask pain, and some injuries, especially whiplash or concussions, may not manifest for hours or even days.
2. Call the Police: Always file a police report. In Los Angeles, this means contacting the LAPD or California Highway Patrol (CHP) depending on the location of the crash. The report will document critical details, including the time, location, and initial assessment of fault.
3. Document Everything:
   • Take photos and videos of the accident scene from multiple angles – vehicle damage, road conditions, traffic signals, skid marks, and any injuries.
   • Get contact information from all drivers, passengers, and witnesses: full names, phone numbers, email addresses, and insurance details.
   • Note the Uber or Lyft driver’s app status. Ask if they were on a trip, en route to a pickup, or simply logged in.
   • If possible, get a screenshot of the driver’s active trip details from their phone, or yours if you were a passenger.
4. Do Not Admit Fault: Never apologize or admit fault at the scene. Stick to the facts.

Specific Steps for Rideshare Drivers:

As an Uber or Lyft driver, your obligations are specific and immediate.

1. Report to the Rideshare Company IMMEDIATELY: This is non-negotiable. Both Uber and Lyft have in-app reporting tools and dedicated accident support lines. Delaying this can complicate your claim and potentially jeopardize coverage. Be prepared to provide details about the trip status, passenger information, and accident circumstances.
2. Notify Your Personal Insurer: Even though the TNC’s policy is primary during an active trip, you still need to inform your personal auto insurance company. They will need to be aware of the incident, even if they aren’t the primary payer.
3. Retain Legal Counsel: Navigating a multi-insurer claim is complex. I cannot stress this enough. An experienced Los Angeles car accident lawyer can ensure your rights are protected and that the correct insurance policy is triggered.

Specific Steps for Passengers:

If you were a passenger in an Uber or Lyft, your focus should be on recovery and ensuring proper compensation.

1. Seek Medical Care: As mentioned, prioritize your health. Do not delay.
2. Collect Driver Information: Get the driver’s name, license plate number, and the Uber/Lyft trip ID. This is crucial for tracking down the correct insurance policy.
3. Contact an Attorney: As a passenger, you are typically not at fault. Your claim will likely involve the rideshare company’s primary insurance. An attorney can help you understand your rights and pursue compensation for medical bills, lost wages, pain, and suffering. My firm has successfully handled dozens of these cases through the Los Angeles Superior Court system, often negotiating settlements before litigation even begins.

Specific Steps for Other Motorists/Pedestrians:

If you were hit by an Uber or Lyft driver, you’re in a strong position under AB 145.

1. Identify the Driver’s Rideshare Affiliation: Ask the driver if they were working for Uber or Lyft at the time of the accident. Look for any rideshare decals or branding on their vehicle.
2. Gather Evidence: Photos, witness statements, and the police report are your best friends.
3. Contact a Personal Injury Lawyer: The TNC’s $1.5 million policy is a significant asset, but their adjusters are sophisticated. You need an advocate who understands the nuances of California Civil Code Section 3333 regarding damages.

Case Study: The Wilshire Boulevard Collision

Consider a recent incident from late 2025 (before AB 145 fully kicked in, but illustrating the issues it addresses). My client, Sarah, was a passenger in an Uber heading east on Wilshire Boulevard near the La Brea Tar Pits. The Uber driver, distracted, ran a red light at Curson Avenue and collided with another vehicle, causing significant damage and Sarah to suffer a fractured arm and severe whiplash. The Uber driver claimed he was just “looking for a fare” and wasn’t on an active trip, which would have put his personal insurance on the hook, a much smaller policy. However, Sarah had taken a screenshot of her Uber app just moments before the crash, clearly showing the driver had accepted her ride request and was en route. This critical piece of evidence, coupled with witness testimony and traffic camera footage, allowed us to definitively prove the driver was on an active trip. Even though AB 145 wasn’t fully in effect, the evidence pushed Uber’s contingent policy to the forefront, providing a $1 million payout for Sarah’s medical expenses, lost income as a freelance graphic designer, and pain and suffering. The case was settled within eight months through mediation, avoiding a protracted trial in the Stanley Mosk Courthouse. Without that screenshot, the battle would have been far more arduous, likely involving endless discovery and expert witness depositions, stretching the timeline to years.

Here’s what nobody tells you about these cases: insurance companies, even with clear liability, will try to minimize payouts. They will question the extent of your injuries, the necessity of your treatment, and the impact on your daily life. Having meticulous documentation and an aggressive legal team is your only real defense against their tactics.

The implementation of AB 145 represents a significant victory for consumers and a clearer path for legal professionals navigating the complexities of rideshare accident claims in Los Angeles. It forces TNCs to bear more of the financial responsibility for their drivers’ actions during active service. The days of endless finger-pointing between personal and commercial policies are, thankfully, becoming fewer. Still, the devil is always in the details, and precise documentation remains your most potent weapon.

Navigating the aftermath of an Uber crash in Los Angeles demands immediate, informed action to protect your rights and ensure fair compensation under the new legal framework. Don’t hesitate to seek professional legal guidance. For drivers in other states, understanding specific Lyft accidents or Uber accident laws, like those in New York, is crucial.