Rideshare Accidents Are Not Like Regular Car Accidents
When an Uber or Lyft is involved in a crash, the question everyone asks first is simple: who pays? The answer is anything but simple. Rideshare accidents involve multiple layers of insurance that shift depending on whether the driver had the app on, was en route to pick someone up, or had a passenger in the car. If you were in a rideshare accident in Michigan, understanding these layers is the difference between getting compensated and getting the runaround.
The Three Phases of Rideshare Insurance
Phase 1: App off. If the Uber or Lyft driver's app is turned off, they are a regular motorist. Their personal auto insurance applies. Uber and Lyft have zero liability.
Phase 2: App on, waiting for a ride request. Once the driver turns on the app but has not yet accepted a ride, Uber and Lyft provide limited contingent liability coverage. This typically includes $50,000 per person for bodily injury, $100,000 per accident, and $25,000 for property damage. These are relatively low limits for a serious crash.
Phase 3: Ride accepted through trip completion. From the moment the driver accepts a ride request until the passenger exits the vehicle, Uber and Lyft provide $1 million in liability coverage plus $1 million in uninsured/underinsured motorist coverage. This is the highest coverage phase and applies whether you are the passenger, another driver, a pedestrian, or a cyclist.
Michigan No-Fault Complications
Michigan's no-fault system adds another layer. Your PIP benefits (medical expenses, wage loss) typically come from your own auto insurance policy first, regardless of who caused the crash. If you do not own a car and do not have auto insurance — which is common for rideshare passengers — Michigan's priority system under MCL § 500.3114 determines which insurer covers your PIP benefits. This can involve the rideshare driver's policy, a household member's policy, or the Michigan Assigned Claims Plan. It gets complicated fast.
Common Rideshare Accident Scenarios We Handle
Koussan Law has handled rideshare accident cases involving passengers injured during the ride, rideshare drivers hit by other motorists, pedestrians and cyclists struck by rideshare vehicles, and multi-vehicle crashes where a rideshare driver caused the collision. Each scenario triggers different insurance policies and different legal strategies. The one constant is that both Uber and Lyft aggressively defend claims through their corporate legal teams.
Do Not Accept the First Offer
Uber and Lyft have claims processes designed to resolve cases quickly and cheaply. They will offer you a settlement that sounds reasonable when you are still in pain and do not know the full extent of your injuries. Accepting that offer waives your right to pursue additional compensation later. Get an attorney first. Koussan Law evaluates rideshare claims at no cost and takes cases on contingency — you pay nothing unless we win.
Call Koussan Law at (313) 800-0000 for a free consultation about your Uber or Lyft accident claim.
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