Rideshare services, such as Uber or Lyft, have transformed the way you get around the city. Instead of standing on a curb trying to hail a taxi, you simply use an app, request a ride from a driver who has signed up with a rideshare company, and the driver arrives in their personal car, making door-to-door travel faster and more accessible for millions of people. Unlike traditional taxi services, rideshare drivers use their own vehicles and operate as independent contractors rather than company employees. These distinctions become very important when determining responsibility in a Michigan car accident. 

As ridesharing has become more popular, lawsuits and legal disputes have likewise increased. Because rideshare accidents can involve multiple stakeholders, including drivers, rideshare companies, third-party insurance providers, and other motorists, pursuing a personal injury claim can be more complicated than in a regular car crash. If you’ve been injured while using or driving for a rideshare service, you might find yourself wondering who is truly responsible for your losses. Let our competent Michigan ridesharing accident lawyer discuss these issues and help clear things up.

Determining Fault: Driver vs. Rideshare Company vs. Third Parties

When a rideshare accident happens in Michigan, who is responsible for paying damages? Is it the driver, the rideshare company, or someone else? In many cases, it’s not a quick or straightforward answer. Michigan operates under a no-fault system for car insurance, which means each driver typically relies on their own insurance for personal injury protection. However, when a rideshare driver is involved, additional layers of liability and coverage can come into play.

It’s tempting to assume Uber or Lyft automatically share fault whenever a rideshare driver is involved in an accident, but it’s not always that simple. Under Michigan law, rideshare companies are required to provide certain types of insurance coverage for their drivers. However, the activity of the driver at the time of the crash can influence whether you pursue a claim against the personal auto insurance of the driver or the commercial policy of the rideshare company.

• • Driver Mode On 

The driver has the rideshare app on and is waiting for a ride request.

• • En Route to Pick Up

The driver has accepted a request and is on the way to get the passenger.

• • Trip in Progress 

The passenger is in the vehicle, and the trip is ongoing.

• • Driver Off-Duty

The driver has turned off the rideshare app and uses the vehicle for personal reasons.

Each stage can trigger different insurance coverage levels. For instance, if the driver is off-duty, you might be dealing primarily with the personal insurance of the driver. If the driver has the app on and is en route to pick you up, or you’re already in the car, the insurance coverage of the rideshare company might apply, affecting how much money you can get for medical expenses, vehicle repairs, and other losses.

Insurance Coverage Layers and Disputes

In a car accident, you or your Michigan car accident attorney usually go after the personal insurance of the at-fault driver for compensation. In a rideshare accident, though, the personal auto policy of the driver might contain exclusions that limit coverage when the car is used for commercial activity. To fill the gap, rideshare companies provide insurance that becomes active once drivers connect with passengers through the app. 

Once the app is on and the driver is waiting for a ride request, the rideshare company provides limited liability protection if the personal insurance of the driver does not apply. When the driver has accepted a request or is transporting a passenger, the primary policy of the rideshare company often comes with higher liability limits, sometimes up to $1 million, offering more comprehensive protection for everyone involved in the event of an accident.

Common Loopholes and Pitfalls

The insurance policies involved in rideshare accidents can include numerous exclusions and loopholes. For example, the policy of the rideshare company might cover bodily injuries to passengers or other people on the road, but it might not automatically cover damage to the personal vehicle of the driver unless the driver has a specific rideshare endorsement or purchased additional coverage.

Furthermore, disputes frequently arise among multiple insurers. Each insurer adjuster might attempt to deflect liability to another, claiming that the policy of the other party should pay for damages. That’s why it’s often best to consult with a local ridesharing accident lawyer who is knowledgeable about Michigan insurance laws and can advocate for you when insurers try to minimize or deny your claim.

Protect Your Interests After a Rideshare Accident

The moments after an accident are often filled with uncertainty. If you’re hurt in a rideshare crash, your top priority should be getting medical help. Seek care immediately, even if you feel okay. Some injuries don’t show symptoms right away, and having timely records from a healthcare professional helps document your claim. 

Don’t forget to gather as much information as you can about the accident. Take pictures of the scene, your injuries, and any property damage. Save screenshots or emails from your rideshare app confirming the ride. Collect contact information from witnesses, other drivers involved, and your Uber or Lyft driver if you were a passenger.

No matter how minor or severe your injuries, you have the right to seek compensation for any losses. If you believe another driver caused the accident, or you think the rideshare driver was at fault, don’t face these corporate giants and insurance companies alone. Shafer Swartz PLC can guide you through the legal process.

Our experienced Michigan car accident attorneys can review every layer of insurance coverage, identify responsible parties, and advocate fiercely on your behalf, ensuring you receive proper medical care, a thorough investigation of the crash, and a fair settlement or court verdict reflecting the full scope of your injuries and damages.

Remember, time can be critical in these cases. Not only do you need to file your claim within certain deadlines, but evidence can be lost or degraded over time. So, contact us immediately after a rideshare accident at (231) 722-2444 or here to get the legal support you need. Let us help you secure the compensation you deserve.