Does Michigan Auto Insurance Cover Uber Driver or Ride-sharing Services

Michigan auto insurance coverage ride-sharingMichigan Insurance Coverage for Ride-Sharing Services

Michigan is a no-fault state so there are a lot of gray areas as to whether Michigan auto insurance coverage will extend to Ride-Sharing drivers and passengers. Most Ride-sharing companies coverage is secondary to the driver’s personal policy and most Michigan auto insurance companies do not provide insurance coverage for personal autos while it is used for ride-sharing services. There have been a couple of bills to clarify ride sharing coverage proposed by the Michigan house and senate but they have not been voted on.

Generally, Michigan auto insurance will not provide coverage for most of the Ridesharing programs like Uber because the driver’s personal auto insurance policy will have a (business use) exclusion that excludes coverage provided by the policy while the driver is logged in or in route to a pickup.

This means that any damage to their vehicle and other benefits provided by the Michigan No-Fault insurance laws would not be paid.  This also means that the drivers if at fault in causing the accident, would lose their liability protection for any bodily injury or property damage that they caused in the accident and would be personally liable for the damage and other parties injuries.

Passengers (who are injured in a ride-sharing vehicle) that normally would have claimed No-Fault insurance benefits through the driver may have to turn to other sources to qualify under Michigan’s No-Fault insurance for medical benefits.  If regular medical benefits are not available to the passengers they may need to file a claim for PIP benefits through the Michigan Assigned Claims Plan (MACP).

Auto Insurance Coverage that Ride-sharing services provide is divided into three sections:

  • Not Logged In: Personal Driving: No insurance provided by any of the services. Drivers are only covered by their personal insurance policy.
  • Logged In & Waiting For Ride Request:

Lyft provides (Contingent liability coverage with 50/100/25 limits provides secondary coverage that pays only for losses not covered by driver’s personal policy).

Sidecar provides (Collision insurance with $50,000 limit and $500 deductible provides secondary coverage that pays only for losses not covered by driver’s personal policy).

UberX provides (Contingent liability coverage with 50/100/25 limits provides secondary coverage that pays only for losses not covered by driver’s personal policy).

  • En Route To Pick Up Passengers or Driving Passengers:

Lyft provides Commercial liability insurance with $1 million limits. Uninsured/underinsured bodily injury with $1 million limits. Contingent comprehensive and collision coverage with $50,000 limit and $2,500 deductible (only for driver’s with personal comprehensive and collision coverage).

Sidecar provides Commercial liability insurance with $1 million limits. Collision insurance with $50,000 limit and $500 deductible provides secondary coverage that pays only for losses not covered by driver’s personal policy.

UberX provides Contingent liability coverage with 50/100/25 limits provides secondary coverage that pays only for losses not covered by the driver’s personal policy.

Michigan Auto Insurance ride-sharing coverage options may be available.

Some of the major Michigan auto insurers may provide coverage if the vehicle is classified for business use. 

State Farm has added an option to add a ride-share rider to your personal automobile policy. You should check with your agent or your auto insurance carrier to see if they have endorsements that can be added to the drivers personal policy to make sure that their vehicles and passengers will be covered before deciding upon joining one of these ride-sharing services.

Normal coverage under a Michigan auto insurance policy:

For detailed information on what would be covered under the Michigan auto insurance policy click on the link for Understanding Michigan auto insurance.

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