Understanding Rideshare Insurance Coverage For Pedestrian Accidents In Michigan
Rideshare services like Uber and Lyft have changed the way people travel, but accidents involving pedestrians remain a serious concern. When a pedestrian is struck by a rideshare vehicle, the legal and insurance issues can quickly become complicated. Michigan law provides protections for injured pedestrians, but determining who is responsible for compensation can be challenging. Insurance coverage depends on whether the rideshare driver was logged into the app, carrying a passenger, or off-duty at the time of the accident. We help injured pedestrians understand their rights and pursue the compensation they deserve under Michigan law.
How Michigan’s No-Fault Law Affects Rideshare Pedestrian Accidents
Michigan operates under a no-fault insurance system, meaning that individuals injured in car accidents must first turn to their own Personal Injury Protection (PIP) coverage for medical expenses and lost wages. Under MCL 500.3105, PIP benefits apply regardless of fault, but pedestrians who do not have their own auto insurance may be covered under the rideshare driver’s or another applicable policy.
In rideshare pedestrian accidents, insurance coverage depends on the driver’s status at the time of the crash:
- Driver Not Logged Into the Rideshare App – The driver’s personal auto insurance applies.
- Driver Logged In But No Passenger – Rideshare company liability insurance provides limited coverage.
- Driver Transporting a Passenger – The full commercial liability policy of Uber or Lyft applies, covering up to $1 million in damages.
Understanding which policy applies is critical in determining how an injured pedestrian can recover compensation.
Rideshare Company Insurance Coverage For Pedestrian Accidents
Rideshare companies carry liability insurance that provides coverage for injuries caused by their drivers. Under MCL 500.3101, all registered vehicles in Michigan must be insured, and rideshare companies provide additional commercial policies that apply in specific situations.
- If a driver is carrying a passenger or en route to pick one up, Uber and Lyft provide up to $1 million in third-party liability coverage for injuries and damages.
- If the driver is logged into the app but has not accepted a ride request, a lower level of liability coverage applies, usually $50,000 per person, $100,000 per accident, and $25,000 for property damage.
- If the driver is not logged in, their personal auto insurance applies, and the rideshare company’s policy does not cover the accident.
For pedestrians, determining which insurance policy applies is one of the first steps in pursuing compensation.
Who Pays For A Pedestrian’s Medical Bills After A Rideshare Accident?
Under MCL 500.3114, an injured pedestrian must first seek compensation through their own no-fault PIP coverage. If the pedestrian does not have auto insurance, coverage may come from a relative’s policy, the rideshare driver’s policy, or the Michigan Assigned Claims Plan if no other coverage is available.
If injuries exceed PIP coverage, the pedestrian may pursue a third-party claim against the rideshare company’s liability insurance. These claims allow for additional compensation, including pain and suffering, permanent injuries, and other non-economic damages.
Suing Uber Or Lyft For A Rideshare Pedestrian Accident
Michigan law allows injured pedestrians to file lawsuits for compensation beyond PIP benefits when injuries meet the state’s serious impairment threshold under MCL 500.3135. A serious impairment includes:
- Loss of an important bodily function
- Permanent disability
- Significant disfigurement
If a rideshare driver’s negligence caused the accident, Uber or Lyft’s liability insurance may be responsible for covering damages beyond what no-fault insurance provides. These cases require careful legal analysis to determine fault and establish the extent of the pedestrian’s injuries.
Frequently Asked Questions About Rideshare Pedestrian Accidents In Michigan
What Should I Do If I Am Hit By An Uber Or Lyft Driver In Michigan?
After being hit by a rideshare vehicle, the first priority is seeking medical attention. Even if injuries seem minor, it is important to document them as soon as possible. Calling the police to file an accident report ensures there is an official record. Gathering the driver’s information, including whether they were working for Uber or Lyft at the time, helps determine insurance coverage. Speaking with an attorney before filing insurance claims can prevent mistakes that may affect compensation.
Does Uber Or Lyft Automatically Cover Injured Pedestrians?
Coverage depends on whether the rideshare driver was actively using the app at the time of the accident. If the driver was transporting a passenger or on the way to pick one up, Uber and Lyft provide up to $1 million in liability coverage. If the driver was logged in but waiting for a ride request, lower coverage applies. If the driver was not using the app, only their personal insurance applies.
Can I Sue The Rideshare Company Directly?
Uber and Lyft classify drivers as independent contractors, making it difficult to sue the company directly. However, their insurance policies provide coverage for accidents caused by their drivers. If injuries are severe, a claim against their liability insurance may allow for compensation beyond what no-fault benefits cover.
What If I Do Not Have Auto Insurance?
Pedestrians without auto insurance may still receive PIP benefits through a household relative’s policy. If no coverage is available, they may apply for benefits through the Michigan Assigned Claims Plan. Additionally, if the rideshare driver was at fault, a third-party claim may provide compensation for medical expenses and pain and suffering.
How Much Compensation Can I Receive For A Rideshare Pedestrian Accident?
The amount of compensation depends on the severity of injuries and available insurance coverage. PIP benefits cover medical expenses and lost wages, while third-party claims may provide compensation for pain and suffering, disability, and long-term medical costs. Cases involving severe injuries typically result in higher settlements or verdicts.
What If The Rideshare Driver Left The Scene After Hitting Me?
Hit-and-run accidents involving rideshare drivers can complicate insurance claims. If the driver is not identified, the pedestrian may need to rely on their own uninsured motorist coverage or the Michigan Assigned Claims Plan. An attorney can help investigate the accident and identify potential sources of compensation.
Is There A Deadline To File A Lawsuit After A Rideshare Accident?
Yes. No-fault insurance claims must be filed within one year of the accident. If suing for additional damages, the statute of limitations in Michigan is three years. Filing within these deadlines is critical to securing compensation.
Can A Rideshare Passenger Be Held Liable If They Distracted The Driver?
In rare cases, a rideshare passenger may contribute to an accident by distracting the driver or interfering with vehicle operation. While Uber and Lyft generally hold their drivers responsible, liability could be shared if a passenger’s actions led to the crash. Determining responsibility requires a careful review of evidence, including witness statements and traffic camera footage.
How Can An Attorney Help With A Rideshare Pedestrian Accident Case?
An attorney reviews all available insurance policies, determines liability, and negotiates with insurance companies to maximize compensation. Insurance providers often try to limit payouts, and having legal representation ensures that an injured pedestrian’s rights are protected. If necessary, an attorney can file a lawsuit to seek full compensation for medical expenses, lost wages, and long-term damages.
Contact Ravid & Associates, P.C. For Experienced Legal Help
If you were hit by an Uber or Lyft driver in Michigan, understanding your rights under state law is critical. Insurance companies often try to avoid paying full compensation, and having the right legal representation makes all the difference. We fight for injured pedestrians to ensure they receive the benefits and damages they deserve.
If you or a loved one has been injured in a rideshare accident, contact our Detroit rideshare accident lawyers at Ravid & Associates, P.C. by calling (248) 948-9696 to receive your free consultation. We represent clients in Detroit and throughout Michigan from our office in Southfield. Let us help you get the compensation you need to move forward.
