🚗 Ride-Sharing Insurance in Michigan: What Uber & Lyft Drivers Must Know (2025)

As of May 17, 2025, Michigan ride-sharing insurance laws continue to evolve. With platforms like Uber and Lyft playing a major role in transportation, it’s essential for drivers and passengers to understand their insurance coverage under Michigan’s no-fault system.

🔍 Michigan’s No-Fault Insurance & Ride-Sharing

Michigan is a no-fault state, meaning your auto insurer pays for your injuries regardless of who caused the accident. However, ride-sharing complicates things, as personal auto policies typically exclude coverage while driving for Uber or Lyft.

📜 Michigan Ride-Sharing Law Overview

In 2017, Michigan law began regulating ride-sharing services like they do limousines and taxis. The most significant requirements include:

• $1 million liability coverage while transporting passengers
• $50,000 liability coverage while waiting between rides

Under the 2020 auto reform, ride-share drivers must choose $250,000, $500,000, or unlimited PIP coverage. If they opt for limited PIP, they may need a rider to extend attendant care coverage.

🛡️ Ride-Sharing Coverage Breakdown

1. Not Logged into the App

No coverage is provided by Uber or Lyft. Your personal policy must cover you, and if it excludes commercial use, you’re likely uninsured.

2. Logged In, Waiting for a Ride

Both companies provide contingent liability coverage:

• Uber & Lyft: $50,000/$100,000/$25,000 (secondary coverage)

3. En Route or Transporting Passengers

• Uber: $1M liability + contingent collision (up to ACV, $2,500 deductible)
• Lyft: $1M liability, UM/UIM, contingent comp & collision + optional PIP & MedPay

🚨 Passenger Injury Coverage

If you’re a passenger and get injured, you must file under your own no-fault insurance first. If you don’t have insurance, you can claim PIP under the driver’s policy, limited to their coverage. Otherwise, apply through the Michigan Assigned Claims Plan (MACP).

⚠️ Legal & Safety Requirements for Drivers

• Background checks & vehicle inspections required
• Must display company signage and show driver’s photo before pickup
• Must not have multiple violations, major offenses, or felony convictions in last 5 years
• Drivers must be 19+ and hold a valid U.S. license

💡 Optional Business Use Coverage

Some Michigan insurers may allow business use coverage on personal auto policies. However, they are not required to. According to MCL 500.3017, ride-sharing companies must disclose these exclusions in writing.

📚 Need Help Understanding Michigan Insurance?

For more details on what standard Michigan auto insurance covers, check out our full guide on Michigan Auto Insurance Coverage Guide.

✅ Final Thoughts

Michigan ride-sharing insurance is layered and complex. Whether you’re a driver or a frequent rider, understanding what protections exist—before an accident—can make all the difference. Review your personal auto policy and consider supplemental ride-share endorsements if available.