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Last Modified on Jun 18, 2026
Rideshare apps are incredibly convenient. They allow users to hail rides from other drivers at a reasonable price, providing a viable alternative to driving their own car or calling a cab. Unfortunately, rideshare drivers are not perfect, and they sometimes get into crashes. The question is, what happens when an Uber or Lyft driver causes your accident in Michigan?
Who Pays for Expenses
Michigan is a no-fault insurance state, which means that if you get into an accident, it doesn’t matter who was at fault. If your injuries were minor and your medical care and lost wages are under the threshold set by your insurance policy cap, your own auto insurance can pay for these economic losses, and you may be ineligible to receive non-economic damages.
If your injuries were more severe, you may be eligible to receive additional compensation. In these cases, Uber or Lyft can pay for damages that extend beyond what’s covered by your PIP insurance, including:
- Excess medical expenses
- Excess lost wages
- Pain and suffering
- Other non-economic damages
This is the case whether you were a passenger in the rideshare vehicle, another driver, a pedestrian, or a bicyclist.
Uber and Lyft’s Insurance Policies
Both Uber and Lyft carry extensive insurance policies that cover the drivers who use their apps. However, the policy cap that applies to your accident may vary depending on the status of the rideshare driver when the accident occurred. Here’s what you need to know:
- Accidents with riders. Uber carries a $1 million policy that covers injuries to rideshare app users and others injured in accidents with their drivers while they are carrying passengers, and so does Lyft.
- Accidents without riders. If a rideshare driver is on the clock and either waiting for passengers or on their way to pick them up, a different policy cap applies. Both Uber and Lyft have insurance that covers up to $100,000 per accident or up to $50,000 per person for bodily injuries.
- Off the clock. If the rideshare driver was not on the clock when the accident occurred, their private insurance can cover any excess damages not paid for by the accident victim’s PIP coverage.
If you’re confused about how to hold a rideshare driver liable for a crash they caused, you can consult a Michigan rideshare accident attorney regarding your case. They can leverage their knowledge of rideshare accident laws to determine who was at fault and how to make sure you get fully compensated.
Meeting Michigan’s Standard for a Personal Injury Claim
Under MCL Section 500.3135, only certain accident victims are entitled to file personal injury claims following rideshare accidents. Drivers can only be held liable for non-economic losses if the injured person:
- Died
- Suffered a serious impairment of body function
- Was permanently disfigured
In these cases, damages are assessed on the basis of comparative fault. Rideshare app users are rarely assigned fault for accidents caused by their drivers, but this may be relevant if you were in an accident with a Lyft or Uber driver in your own car. If you were driving another car and were determined to hold less than 51% liability for the crash, you could still be eligible to receive some compensation from the rideshare driver or the company they worked for.
If you plan to file a personal injury claim in Michigan, it’s doubly important that you work with a rideshare accident attorney who has experience in negotiating with insurance companies and litigating these types of cases in court.
Rideshare Accident Statistics
One recent study shows that around one-third of rideshare drivers have experienced at least one crash while on the job. There are between 1.5 and two million rideshare drivers in the United States. Though only a small percentage of them operate in the Great Lakes State, that still adds up to many crashes involving rideshare app users and other drivers.
FAQs
How Long Does a Lyft Accident Settlement Usually Take?
How long a Lyft accident settlement usually takes depends on several factors, including the complexity of the rideshare accident case and whether it needs to go to court for a resolution. Cases that are resolved through negotiations with Lyft’s insurance company generally take less time than those that must go to trial. Complex cases that require going through extensive evidence to reconstruct the accident and determine liability also tend to take longer.
What Happens if Your Uber Driver Causes an Accident?
What happens if your Uber driver causes an accident is that each injured party has their medical bills and lost wages paid for by their own PIP insurance. If you were a passenger and do not own a car or have auto insurance, you can file a claim through Uber’s insurance company. You may also be able to file a claim for additional damages if you were severely injured or permanently disfigured by the crash.
What Happens if You Get Into an Accident With a Lyft Driver?
What happens if you get into an accident with a Lyft driver depends on the severity of the crash. In most accidents that occur in Dearborn, motorists have their medical bills and a percentage of their lost wages paid for by their own insurance companies under Michigan’s no-fault insurance coverage system.
However, you may also be able to recover non-economic damages if you meet the state’s legal threshold of permanent disfigurement or serious impairment of body function.
Hire a Rideshare Accident Lawyer Today
If you were riding in an Uber or Lyft car and got into an accident, you can hire a dedicated rideshare accident lawyer to help you make sure you get fully compensated for your damages. Depending on the severity of your injuries, you may be eligible to receive compensation through the rideshare app’s insurance company.
The team here at Wigod & Falzon has been in practice for longer than rideshare apps have been in existence. We’ve represented countless Uber and Lyft accident victims, helping them take advantage of these companies’ extensive insurance policies to get the compensation they need and deserve to heal from their injuries and move on with their lives. Contact us to schedule an initial consultation regarding your rideshare accident case today.
