Cutting UM/UIM Coverage Puts You at Risk for the Sake of Corporate Profit

By Eugene Bruno on November 18, 2025

As a lawyer who represents injured people every day, I cannot emphasize this enough: Reducing uninsured/underinsured motorist (UM/UIM) coverage for rideshare passengers is dangerous because it puts corporate profits over public safety, leaving injured passengers with fewer options, higher medical costs, and little protection when they need it most.

In serious injury cases, the driver who caused the crash almost never has adequate insurance. Many carry only the state minimum. Many have no insurance at all. If you are injured in that situation, the only way you can be fairly compensated is through the UM/UIM coverage currently required by California law. The current $1 million limit exists for a reason: serious injuries can require hundreds of thousands of dollars in medical care. Bills for spine injuries, traumatic brain injuries, and long-term disability reach well into six and seven figures. Cutting UM/UIM protection would leave seriously injured passengers without the means to recover and move on with their lives.

Uber, Lyft, and their lobbyists insist they are reducing UM/UIM to rein in “insurance costs” and promote “market competitiveness.” What they really mean is that these multibillion-dollar companies are not making enough profit, so they’re going to squeeze more out of us all.

Often, UM/UIM is the only thing that keeps an injured passenger from losing everything. When the at-fault driver has no insurance and Uber and Lyft no longer protect their passengers, there is nowhere left to turn. Hospitals still charge. Doctors still expect payment. Medi-Cal may cover some, but the rest becomes crushing medical debt. Cutting UM/UIM does not eliminate these medical costs, it merely shifts the cost to the public and to the injured for the sake of greater corporate profit.

Do not be fooled into thinking that slashing UM/UIM limits will make rides cheaper. Insurance premiums are only one factor in fare pricing. It’s a fantasy to think the companies that brought you “surge pricing” will voluntarily pass any savings along to their customers. The only certain outcome of lowering coverage is that victims get less help when they need it most.

California required rideshare companies like Uber and Lyft to carry $1 million in UM/UIM coverage because these companies were earning billions, while their passengers were being exposed to the very real risk of being injured by uninsured, underinsured, or hit-and-run drivers. By mandating $1 million in coverage, California successfully balanced rider safety against corporate profit and ensured that people who trust these companies with their transportation are not left unprotected. That policy worked, but now it seems it will give way to corporate greed.

As your San Diego car accident lawyers, our job is to fight for the full compensation you deserve after an injury. That becomes nearly impossible if the available insurance is gutted before the crash even happens. Californians deserve real UM/UIM protection, not a downgraded version created to shave a few dollars off a corporate insurance bill.

Speak With a San Diego Rideshare Accident Lawyer Today

After an accident with a rideshare vehicle, contact Eugene Bruno & Associates at 1-888-BRUNO-88 (1-888-278-6688) for a free consultation.