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 policy. Michigan auto insurance companies do not provide insurance coverage for personal autos while in service for ride-sharing services. There have been a couple of bills to clarify ride sharing coverage by the Michigan house and senate, but they have not been sent for a vote.

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

Damage to their vehicle and other benefits that Michigan No-Fault insurance laws provide will not be paid.   Drivers if at fault in causing the accident, will lose their liability protection for any bodily injury or property damage that they caused in the crash and will be personally liable for the losses and the other parties injuries.

Passengers (who are hurt in a ride-sharing vehicle) that generally 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).

Ride-sharing services provide auto insurance coverage in three sections:

  • Not Logged In: Personal Driving: No insurance provided by any of the services. Their insurance policy only covers drivers.
  • 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 the driver’s policy).

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

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

If your Michigan auto insurer classifies your vehicle for business use, the may provide some coverage. 

State Farm has added an option to add a ride-share rider to your personal automobile policy. Check with your agent or insurance carrier to see if they have endorsements that you can add to your personal policy. Make sure that your vehicle and passengers have coverage before joining one of the ride-sharing services.

The usual coverage under a Michigan auto insurance policy:

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