Rideshare Accident Lawyers in Michigan

Insurance Complications in Rideshare Accident Claims

With at least a million rideshare drivers working in the U.S., Uber and Lyft have taken steps to ensure their insurance is not prohibitively expensive. This means setting limits for when and how it can be used. Unfortunately for accident victims, these restrictions make the claims process more complex.

Drivers Are Only Covered When Working

Uber and Lyft drivers often keep “trade dress,” or decals with the Uber and Lyft logos, on their cars so riders can easily find them. However, just because a car has one of these names on it does not mean its driver is working commercially at the time of an accident. If they are not searching for a ride, on their way to pick up a passenger, or transporting someone to their destination, a driver’s personal insurance is the only policy that will cover an accident.

Tiered Coverage Based on Ride Status

As soon as a driver opens their app and goes online with Uber or Lyft, these companies’ commercial coverage kicks in. Any active rideshare driver has the minimum level of coverage offered by Uber or Lyft:

• PIP insurance (though only in no-fault states like Michigan)
• $50,000 per person/$100,000 per accident in bodily injury
• $25,000 per accident in property damage

As soon as a driver has accepted a ride request, their insurance coverage increases drastically to:

• $1,000,000 per accident in third-party liability
• Uninsured/underinsured motorist bodily injury

These increased policy limits apply for as long as the request is active: A driver who is en route to pick up a rider or transporting someone to their destination qualifies for this coverage.

If you’re a passenger, it’s obvious your driver was fulfilling a ride request at the time of your accident, but for third-party accident victims, it’s important to get proof of the driver’s exact status so you have proof of the insurance limits that apply.

Rideshare Insurance Is Secondary

Both Uber and Lyft’s insurance policies also specify they are secondary to any other coverage that may apply to an accident. Some rideshare drivers choose to carry their own commercial insurance coverage, which means you would first have to file for compensation through that individual’s policy. If you have PIP insurance, you may have to file with your insurance and against the driver’s commercial insurance before you would be eligible to seek additional damages from Uber or Lyft.

The way insurance policies interact is confusing, and if you’ve been seriously injured, you need help—not a tangle of rules and requirements standing between you and a settlement. Our attorneys can provide guidance to make your claim as efficient as possible while exploring all options for compensation.