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How Do No-Fault Benefits Apply in a Michigan Rideshare Crash?

smartphone being used for rideshareGetting from one place to another using a rideshare service, such as Lyft or Uber, is convenient, especially in urban areas. There is no parking to worry about, the service is door-to-door and it is affordable.

But what happens if you are involved and injured in a car crash as a rideshare passenger or even as another driver? That raises a lot of questions about pursuing a no-fault benefits claim, and it is a situation that can quickly become complicated.

Below, our Grand Rapids auto accident lawyers discuss how no-fault benefits may apply in a crash involving a Lyft or Uber driver.

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Are No-Fault Benefits Available After a Crash Involving a Rideshare Driver?

The answer to this question is yes, if you drive and are insured in Michigan, you are likely eligible for no-fault benefits after a crash with a rideshare driver. Your no-fault benefits provide personal injury protection (PIP) benefits to cover your medical expenses, lost wages and more.

However, there is a priority order for pursuing no-fault benefits, which applies as follows:

Uber or Lyft Passengers

Passengers riding in the Uber or Lyft vehicle when an accident occurs will pursue no-fault benefits through one of the following:

  • His or her own policy
  • A spouse’s policy
  • The policy of a relative who lives with him or her

There are some passengers who may not own a vehicle and who are also not eligible for no-fault benefits through any other family member. In that situation, no-fault benefits would be available through the insurance company that covers the Uber or Lyft vehicle. This could be through the driver’s insurance company or the rideshare service if the driver is uninsured or underinsured.

The PIP medical benefits will be provided up to the limits of:

  • The coverage you selected, if going through your own policy
  • The limits selected by the insured  policy you pursue a claim under

Your attorney can help determine what coverage levels may be available to you in your situation.

Uber or Lyft Driver

A rideshare driver is required to purchase minimum coverage as required by Uber or Lyft. As such, the insured may be eligible for no-fault benefits under his or her purchased auto insurance policy. That said, the rideshare driver’s auto insurance – and all included coverage – could be null and void if:

  • The policyholder failed to inform the insurer the vehicle would be used for business purposes.
  • The policy has an exclusion clause disallowing business or commercial use of the insured vehicle.
  • The insurance company may also deny coverage if the insured uses his or her vehicle for business purposes.

Non-Rideshare Involved Parties

Those who are involved in a collision with an Uber or Lyft vehicle may pursue no-fault benefits as follows:

Non-Rideshare Driver/Passenger

If you are in another vehicle and involved in a crash with a rideshare vehicle, then your no-fault benefits would go first through the insurance of that vehicle. The order is similar to the priority described above. However, if there is no insurance resource, then you will likely be eligible for no-fault benefits through the Michigan Assigned Claims Plan (MACP). Under the MACP, once you apply, you will have an insurance company assigned to handle your claim.

Motorcyclist, Bicyclist, Pedestrian

If you were a motorcyclist, pedestrian or bicyclist and were struck by a rideshare vehicle, your no-fault benefits will be either through your own auto insurance carrier, the policy of a spouse – or of a live-in relative. The MACP is also available to you if there is no other policy for you to claim benefits through. (See MCL 500.3115)

Uber or Lyft Insurance

As stated above, the no-fault benefits are generally covered through your own policy – or in the priority order described.

However, in addition to your no-fault benefits, you may be eligible to pursue additional compensation through the at-fault driver’s liability insurance, the Uber or Lyft driver’s liability coverage or under the additional liability coverage provided by the rideshare service. The coverage limits available are determined by the status of the driver at the time of the crash.

Having an attorney represent you in this type of claim can be a valuable resource and help to ensure that every legal option is tapped for helping you recover compensation for your damages.

Excess Damages

If you meet the state’s requirements under the impairment threshold, you may also be eligible to pursue non-economic damages, such as pain and suffering, through the auto insurance policy of the driver who caused the crash.

Our experienced attorneys are prepared to help you navigate the confusing legal waters of a claim involving a rideshare driver.

What Should I Do After a Crash Involving a Rideshare Driver?

The first steps for a crash involving a rideshare driver should be handled much as you would any other collision with another vehicle.

These are the priority steps after any car crash to help protect both you and your claim:

  • Call 9-1-1
  • Seek medical attention at a nearby hospital immediately
  • Notify your insurance provider of the accident
  • Get a copy of the police report
  • Document the accident and everything related to it
  • Capture photos of the accident scene
  • Contact a qualified attorney for legal help and to protect your interests

Call Our Firm for Legal Help with Your Rideshare Crash Today

Our attorneys at Jay Trucks are knowledgeable and dedicated. We are prepared to fight for maximum recovery on your behalf if you have a valid case. Our team of legal professionals has a long and proven track record, recovering millions on behalf of our clients.

Call today to learn how we may be able to assist you with your legal claim. The consultation is free, and there is no obligation to pursue a claim. We charge nothing up front – or while we work on your case.

Millions Recovered. Call today: (800) 762-8623