What Happens If I Am In An Uber Accident?
More and more people are utilizing ride sharing services such as Uber and Lyft to get around. Their popularity has increased dramatically over just the past few years, as we can now access rides to almost anywhere with our own cell phone. Uber has become particularly popular in Detroit and metro cities in Wayne, Oakland and Macomb counties, as well as Grand Rapids and college towns like Ann Arbor and East Lansing.
But what happens if you are involved in a car accident with Uber? Who is responsible for paying? This article seeks to answer those questions and provide additional information about Michigan Uber law.
Under the Michigan No-Fault Law, a person injured in car, truck or motorcycle accident can be eligible for no-fault benefits. These benefits include the payment of medical and doctor bills, replacement services and wage loss benefits. But what happens if you are involved in an auto accident while riding an Uber or Lyft. Who pays the claim in that situation?
Uber and Lyft Drivers:
Drivers for Uber and Lyft must purchase separate auto insurance when utilizing the transportation network. Personal auto insurance does not cover car accident claims when you have activated the Uber app and are accepting rides. In fact, personal auto policies have specific exclusions for rides for hire.
Therefore, Uber and Lyft drivers must purchase car insurance for when the app is on. James River Insurance is the auto insurance carrier currently writing policies for Uber drivers in Michigan. Without a James River policy, you are essentially driving uninsured while on the clock.
Passengers in a Uber:
For passengers involved in a Michigan car accident while using Uber, Lyft or any ride sharing program, the same order of priority rules apply as in standard Michigan car wreck cases. The auto insurance for Uber and Lyft only pays if no other car insurance carrier is obligated to pay. So Uber maintains the last priority. MCL 500.3114(2)(g).
What is the Liability Coverage for Uber?
If the Uber driver is at-fault for causing the accident, you can file a claim against the at-fault Uber driver for personal injury. The amounts of liability coverage Uber drivers are responsible for paying depends on whether a ride is taking place.
During the time the “transportation network company driver” or Uber driver is logged on to the Uber’s digital network, but is not engaged in a prearranged ride, the amount of liability coverage is 50/100, or $50,000 per person and $100,000 per occurrence. However, when the Uber driver is engaged in a prearranged ride, the amount of liability coverage is $1,000,000.
Uber insurance policies also have $1,000,000 in UM/UIM coverage. This means if another vehicle causes an accident while you are a passenger on an Uber ride, and that at-fault is uninsured, Uber will step into the shoes of the uninsured driver for the payment of pain and suffering compensation.
In addition, if the at-fault vehicle was underinsured, or the amount of liability coverage that person carries is less than what the injuries stemming from the car accident are worth, you can make a claim with Uber to pay the difference. Uber maintains up to a $1,000,000 in underinsured motorist (UIM) coverage.
Talk To A Lawyer You Can Trust
If you or someone you know has been injured in a crash in a ride share or any other kind of motor vehicle accident in Michigan, let them know the Law Offices of Lee Steinberg can help.
Please call Lee Free and speak to our car accident attorneys at 1-800-LEE-FREE (1-800-533-3733) or fill out the Free Case Evaluation Form. And remember, you pay nothing until we settle your car accident case.