How AB 371 Affects Shared Bikes and Scooters in California
California has long been known as one of the most bike-friendly and scooter-friendly states in the nation. Lawmakers have passed protective measures like the Safe Passing Law (requiring drivers to give cyclists three feet of space), lane-sharing rights for bikes and scooters, and the Bike Parking Bill (AB 3153). These laws support safer roads and more sustainable transportation.
However, AB 371 — officially the Shared Mobility Devices: Insurance and Tracking bill — introduced significant changes when it became law in 2022. Signed by the Governor on September 29, 2022 (Chapter 740, Statutes of 2022), and with key insurance provisions effective July 1, 2023, this legislation reshaped insurance requirements for shared bike and scooter systems operated by private companies, nonprofits, and public agencies.
Many riders and businesses still have questions about how AB 371 works today. This comprehensive guide breaks it down clearly: what the law actually requires, its real-world impacts, protections for victims, potential drawbacks, and what it means if you’re involved in a bike or scooter accident in California.
What AB 371 Requires: The Key Provisions of California’s Shared Mobility Law
AB 371 (authored by Assemblymember Reginald Jones-Sawyer) applies to shared mobility devices, defined as electrically motorized boards, motorized scooters, electric bicycles, traditional bicycles, or similar devices rented through apps or digital platforms.
Here are the main requirements:
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Minimum Liability Coverage for Pedestrians (effective July 1, 2023): Shared mobility providers must ensure $10,000 in coverage per occurrence for bodily injury or death to a pedestrian caused (in whole or part) by the negligent use of the device. They must also provide $1,000 for damage to an assistive technology device (e.g., wheelchairs or mobility aids). Providers can confirm that the rider has their own coverage or supply it themselves as a backstop. They cannot let anyone ride without this protection.
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Provider’s Commercial General Liability Insurance: Operators must carry at least $1 million per occurrence and $5 million aggregate, covering injuries even to their own users.
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Tactile Reporting Signs: Every shared device must have a visible raised-character and Braille sign with the company’s name, phone, and email so bystanders can easily report illegal or negligent operation.
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Insurance Disclosures: Before the first ride, apps must clearly warn users (in bold capital letters) that homeowner’s, renter’s, or auto insurance may NOT cover liability from using the device — and users must acknowledge this.
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Exemptions: Traditional human-powered bicycles and Class 1/Class 2 electric bicycles are exempt from the $10,000/$1,000 pedestrian coverage rules.
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Ongoing Study: The California Department of Insurance must submit a report by December 31, 2026, evaluating whether coverage limits need updating and whether exempt bikes should be included.
These rules apply statewide but must also comply with local city or county permits.
Before vs. After AB 371: A Quick Comparison
|
Aspect |
Before AB 371 |
After AB 371 (Current Law) |
|
Pedestrian Injury Coverage |
No statewide minimum for shared users |
$10,000 required (provider or user) |
|
Assistive Device Damage |
No specific requirement |
$1,000 required |
|
Provider Insurance |
Varies by local permit |
$1M occurrence / $5M aggregate mandated |
|
User Disclosures |
Optional |
Mandatory bold warning + acknowledgment |
|
Reporting Mechanism |
None required |
Tactile Braille signs on every device |
|
Exempt Devices |
N/A |
Human-powered bikes + Class 1/2 e-bikes exempt |
Potential Impacts: Safety, Costs, and Access to Shared Mobility
Supporters argue AB 371 improves safety by ensuring injured pedestrians and mobility-aid users have a financial safety net when hit by a negligent shared-scooter or bike rider. It also pressures companies to monitor misuse more closely.
Critics, including the Los Angeles County Bicycle Coalition, warned that added costs could raise rental fees or reduce service in low-income areas. Their statement at the time noted:
“As California looks to rebound from the Covid-19 pandemic, this is not the time to eliminate affordable, socially distanced transportation modes. The legislature should do its part in supporting bike and scooter programs, which replace tens of millions of car trips and reduce greenhouse gas emissions, rather than saddle cities’ micromobility programs with an onerous array of costs that will ultimately impact our most vulnerable communities the most.”
In practice, major operators like Lime, Bird, and Spin continue to serve California cities. No widespread shutdown occurred, but some companies adjusted pricing or routes. The pending 2026 Department of Insurance study will determine if further changes are needed.
How AB 371 Affects Personal Injury Claims After a Bike or Scooter Accident
If you’re struck by a shared scooter or bike, AB 371 can make recovery easier. The required $10,000 coverage provides an immediate insurance source even if the rider has no personal policy. Providers must keep records of insured users and report data to the Department of Insurance.
This law does not make the rental company automatically liable for the rider’s negligence — personal responsibility still applies — but it guarantees a dedicated pool of funds for legitimate claims.
At Sally Morin Personal Injury Lawyers, we regularly handle scooter, e-bike, and bicycle accident cases and know exactly how to navigate these new insurance layers for maximum compensation.
What Our Clients Say
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Real Settlements That Matter
Our team has secured life-changing outcomes in complex transportation cases. One notable example is a $1.65 million settlement for a pedestrian struck by an autonomous vehicle in San Francisco. Cases involving emerging mobility technology require deep expertise — exactly what we bring to shared scooter and bike accidents.
Do You Have a Strong Personal Injury Case? Quick Self-Assessment Tool
Wondering whether your scooter, bike, or shared-mobility accident qualifies for compensation under the new AB 371 rules?
Use our free interactive tool below. In just a few minutes it evaluates negligence, causation, damages, evidence, injury severity, and the statute of limitations — then gives you a clear case-strength score and next steps.
Do I Have a Personal Injury Case?
Why You Need a Specialist for Your Two-Wheeled Accident Case
Motorcycle, scooter, and e-bike crashes involve unique physics, road conditions, and insurance issues that general lawyers often misunderstand. Watch this short video from our team explaining why specialized representation makes a difference:
Frequently Asked Questions About AB 371 and Shared Mobility in California
1. Is AB 371 still in effect?
Yes — it became law in 2022 and the main insurance rules took effect July 1, 2023.
2. Does AB 371 make the scooter company pay for everything if I crash?
No. The company is only required to ensure minimum coverage exists for pedestrian injuries caused by the rider’s negligence. The rider can still be held personally responsible.
3. Will my homeowner’s insurance cover me if I rent a scooter?
Probably not. The law now requires companies to warn you in writing that standard policies often exclude shared-device liability.
4. What if I’m hit by a shared scooter?
You can pursue the rider’s coverage (or the provider’s backstop) plus any other liable parties. The $10,000 minimum is designed exactly for these situations.
5. Are regular bikes covered by the new rules?
No — traditional pedal bikes and most e-bikes are exempt.
6. How do I report dangerous riding?
Look for the tactile sign on the scooter or bike — it lists the company’s contact info for quick reporting.
Key Rules to Follow for Shared Bike and Scooter Users in California
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Always check the app for the mandatory insurance disclosure before riding.
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Ride responsibly — you can still face personal liability.
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Report hazards or illegal parking using the device’s tactile sign.
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If injured, document everything and contact an experienced attorney immediately.
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Providers must comply with local ordinances; violations can lead to permit issues or fines.
Ready to Protect Your Rights?
If you or a loved one has been injured in a bike, scooter, or shared mobility accident, don’t navigate the insurance complexities alone. Our compassionate, all-female team of California personal injury lawyers — many of whom are cyclists and scooter riders themselves — will fight for the full compensation you deserve.
Contact Sally Morin Personal Injury Lawyers today for a free, no-obligation case evaluation. We handle every detail so you can focus on healing.
We truly care about California’s riders and pedestrians. Call or submit your case online — help is just one click away.
