The coverage depends on the app
Michigan regulates Uber and Lyft under the Limousine, Taxicab, and Transportation Network Company Act, 2016 PA 345. Section 23 of that act (MCL 257.2123) sets the insurance a rideshare driver must carry. The minimums change with what the driver was doing in the app when the crash happened.
| Driver’s status | Liability coverage required | PIP and property protection |
|---|---|---|
| App off | Only the driver’s personal policy | Driver’s personal policy |
| Logged on, waiting for a request | $50,000 per person, $100,000 per accident, $25,000 property damage | Required, in the amounts set by the no-fault act |
| Ride accepted, through drop-off | $1,000,000 combined single limit | Required, in the amounts set by the no-fault act |
A “prearranged ride” starts when the driver accepts a request and ends when the last rider gets out. So the $1,000,000 limit applies while the driver is on the way to pick you up, not only while you are in the car.
The coverage can come from the driver’s policy, the rideshare company’s policy, or a combination. If the required coverage lapses or falls short, the company’s insurer must pay from the first dollar and defend the claim, and it cannot wait for the driver’s personal insurer to deny the claim first. After a crash the driver must tell police, insurers and anyone with an interest in the claim whether they were logged on or on a trip. Get that answer, and screenshots of your own ride receipt, right away.
Who pays your no-fault benefits
PIP pays medical care, wage loss (up to the monthly cap for your crash date), replacement services and medical mileage regardless of fault. Which insurer pays is set by MCL 500.3114.
If you were the passenger
Normally a passenger in a vehicle used to carry people for hire claims from that vehicle’s insurer. The statute carves out rideshare vehicles. A rideshare passenger claims first from their own auto policy, or from the policy of a spouse or relative they live with. Only if no other policy covers you does the rideshare vehicle’s insurer pay. Because the act requires PIP coverage whenever the driver is logged on or on a trip, a passenger without household coverage still has a source of benefits.
If you were the driver
Your own policy is the starting point. Many personal policies exclude coverage while you are logged on, so the insurer may refuse. The coverage the act requires then has to respond, and Uber or Lyft’s insurer must step in if your required coverage is missing. Expect a dispute between insurers. Apply to every possible insurer in writing within one year of the crash so a priority fight does not cost you benefits.
If you were in another car, walking or on a bike
You claim PIP the same way as any other crash: your own policy or a household relative’s first. See which insurer pays and, for walkers and riders, pedestrian and cyclist claims.
Suing for pain and suffering
No-fault does not pay for pain and suffering. You can sue the at-fault driver for it if your injuries meet the serious impairment threshold, and you can also recover wage loss and medical costs that PIP did not cover. If the rideshare driver caused the crash, the app period decides how much liability coverage stands behind the claim: $50,000 per person while waiting, $1,000,000 once a ride is accepted. If another driver caused it, that driver’s own bodily injury coverage applies, and your uninsured or underinsured motorist coverage may add more.
Fault is shared in many rideshare crashes, because drivers watch the app while moving and stop suddenly for pickups. Under Michigan’s comparative fault rules a passenger is rarely at fault at all.
What to do now
- Screenshot the trip in your app: driver name, vehicle, route and time stamps.
- Report the crash to police and in the Uber or Lyft app, and get the report number.
- Write down the driver’s personal insurer from their proof of insurance.
- Send your no-fault application to your own insurer, and to the rideshare insurer if you have no household policy.
- Keep every medical record, receipt and work note.
One year for PIP, three years to sue. Notice of your no-fault claim must reach an insurer within one year of the crash. A lawsuit against the at-fault driver must be filed within three years. Use the deadline calculator to see your dates.
By city
We handle rideshare crash claims across metro Detroit and the rest of Michigan. Local courts, police agencies and 2024 crash numbers for the cities where we see the most cases:
- Detroit
- Warren
- Sterling Heights
- Ann Arbor
- Dearborn
- Livonia
- Clinton Township
- Canton Township
- Troy
- Westland
- Farmington Hills
- Southfield
See all locations we serve, or contact us for a free review.
Sources: Limousine, Taxicab, and Transportation Network Company Act, 2016 PA 345, MCL 257.2102 and 257.2123; MCL 500.3114(1), (2)(g) and (9); MCL 500.3135; MCL 500.3145; MCL 600.5805.
Questions people ask us
I was an Uber passenger and I have my own car insurance. Who pays my medical bills?
Your own auto insurer pays your PIP benefits first. Michigan’s priority statute excludes rideshare vehicles from the rule that sends passengers to the vehicle’s insurer, so your policy, or a policy of a spouse or relative you live with, comes first.
I don’t have car insurance and no one in my house does. Can I still get no-fault benefits after a Lyft crash?
Yes. When a rideshare passenger has no other PIP coverage, the rideshare vehicle’s insurer pays. That coverage is required by law whenever the driver is logged on to the app or on a trip.
How much insurance does an Uber or Lyft driver have to carry?
Michigan requires $50,000 per person, $100,000 per accident and $25,000 for property damage while the driver is logged on and waiting for a request. Once a ride is accepted, the minimum is a $1,000,000 combined single limit. When the app is off, only the driver’s personal policy applies.
I drive for Uber and was hurt while logged on. Will my personal insurer pay?
It may not. Many personal policies exclude coverage while you are logged on to a rideshare app. The law requires coverage during that time from your policy, the company’s policy or both, and the company’s insurer must step in from the first dollar if the required coverage is missing.