An Uber or Lyft accident is not a standard Michigan car crash. Instead of one driver, one insurer, and Michigan's usual no-fault rules, a rideshare crash brings in a multi-million-dollar corporate insurance policy, a personal auto policy, and a legal question that decides which one actually pays: what was the driver's app status at the moment of the crash?

The Three "Periods" of Rideshare Coverage

Uber and Lyft coverage is structured around whether, and how, the driver's app was engaged:

  • App off — the driver is not logged in. Only their personal auto policy applies, the same as any other driver.
  • Period 1 — app on, waiting for a request — limited contingent liability coverage applies if the driver's own policy does not cover the crash.
  • Periods 2 & 3 — en route to pick up a rider, or a passenger is in the vehicle — Uber and Lyft's $1 million liability policy applies, along with uninsured/underinsured motorist and contingent collision coverage.

Which period applies at the moment of the crash is often the single most contested fact in a rideshare claim.

If You're a Passenger

As a passenger, you are generally covered by the rideshare company's $1 million policy for the entire time you are in the vehicle, regardless of who caused the crash. You are also entitled to Michigan PIP no-fault benefits for your medical expenses, which may come from your own auto policy, a household member's policy, or the Michigan Assigned Claims Plan if no other policy applies.

If You're the Rideshare Driver

Injured rideshare drivers face a more complicated picture. Coverage depends on exactly which period you were in, whether your personal policy includes rideshare (TNC) endorsement coverage, and whether the crash was caused by another driver, a passenger, or a hazard. Many personal auto policies exclude coverage entirely while the app is on for commercial use, making the platform's contingent coverage critical — and worth having reviewed by an attorney.

If You're a Third Party

If you were hit by an Uber or Lyft driver — as another motorist, a pedestrian, or a cyclist — your claim depends on the same period analysis. A crash during Periods 2 or 3 typically gives you access to the $1 million corporate policy, which is often the difference between a claim that fully covers your damages and one limited to a driver's minimum personal coverage.

"Uber and Lyft's insurers and the driver's personal insurer will often point at each other. Sorting out which policy actually applies is the first fight in a rideshare claim — not the last."

Why These Claims Get Complicated

Rideshare companies and their insurers have strong incentives to argue the driver was in a lower-coverage period than they actually were, or that a personal policy should pay first. App data, trip logs, and driver records are often necessary to prove exactly what happened — and rideshare companies do not hand this evidence over voluntarily.

What To Do After a Rideshare Accident

  • Get medical attention and document your injuries, just as you would after any crash
  • Take a screenshot of the trip status in the Uber or Lyft app before it disappears
  • Get the driver's name, license plate, and insurance information
  • Report the crash through the Uber or Lyft app, which creates a company record
  • Avoid giving a recorded statement to any insurer before speaking with a lawyer

Talk To a Michigan Rideshare Accident Lawyer

Whether you were a passenger, a driver, or hit by a rideshare vehicle, figuring out which policy applies — and holding the right insurer accountable — requires experience with how these companies structure their coverage. At Mumen Barlaskar Law Firm PLLC, we handle rideshare accident claims across Detroit, Hamtramck, Warren, and Southeast Michigan on a no-fee-unless-we-win basis, in English, Bangla, and Arabic.

Frequently Asked Questions

Am I covered if I'm injured as an Uber or Lyft passenger?

Generally yes. Passengers are covered by the rideshare company's $1 million liability policy for the duration of the ride, and are also entitled to Michigan PIP no-fault benefits for medical expenses.

What if the rideshare driver's app was on but they hadn't accepted a ride yet?

This is Period 1, where limited contingent liability coverage applies if the driver's personal policy doesn't cover the crash. Coverage in this period is more limited than once a ride is accepted or a passenger is in the car.

Can I sue Uber or Lyft directly?

Rideshare companies structure their business to treat drivers as independent contractors, which affects how claims are brought. An attorney can evaluate which insurance policies and legal theories apply to your specific crash.