Michigan Rideshare PIP & Liability After 2019 PA 21 (MCL 500.3114)
Uber and Lyft crashes in Michigan are governed by a three-period TNC insurance framework on the liability side and the rewritten MCL 500.3114 PIP priority order on the no-fault side. Out-of-state passengers and Period-1 drivers are the two groups most likely to fall through the gap. This guide explains how to keep coverage alive on both tracks.
The Three Insurance Periods
Michigan’s transportation-network-company (TNC) framework, codified under MCL 257.2101 et seq. and the limited-liability provisions tied to it, splits a rideshare driver’s coverage into three escalating periods:
- Period 0 (app off). The driver’s own personal auto policy is in effect. No TNC coverage applies.
- Period 1 (app on, no ride accepted). The TNC’s contingent liability coverage applies — generally $50,000/$100,000 bodily-injury limits and $25,000 property damage. Personal policy may or may not respond depending on the rideshare-exclusion endorsement.
- Period 2 & 3 (ride accepted; passenger in car). The TNC’s primary $1 million bodily-injury/property-damage policy applies to the driver for the duration of the trip.
PIP Priority Under MCL 500.3114 After 2019 PA 21
The PIP priority rules in MCL 500.3114 were rewritten by 2019 PA 21. For an injured Michigan claimant in a rideshare crash, the order generally runs:
- Claimant’s own personal auto policy (or a resident relative’s) under MCL 500.3114(1).
- If no personal policy applies, the operator/owner’s policy under MCL 500.3114(4).
- Michigan Assigned Claims Plan under MCL 500.3172 / 500.3174 as the last resort, capped at $250,000 of allowable expenses for accidents on or after 2019 PA 21’s effective date.
The Three Most Common Rideshare-Crash Scenarios
| Scenario | Liability coverage | PIP path |
|---|---|---|
| Passenger in rideshare hit by another driver during active trip | TNC $1M during trip; other driver’s policy for fault | Passenger’s own policy first; then operator/owner; then MACP |
| Pedestrian hit by rideshare driver in Period 2/3 | TNC $1M primary during trip | Pedestrian’s own policy if any; otherwise MACP under MCL 500.3115 |
| Driver crashes solo while logged on but no ride (Period 1) | TNC contingent $50/$100/$25 | Driver’s own policy if rideshare-endorsed; otherwise contested coverage fight |
| Another driver hits rideshare driver in Period 0 (app off) | Driver’s personal policy | Driver’s own personal PIP under standard MCL 500.3114(1) |
Threshold and Third-Party Tort — MCL 500.3135
The third-party bodily-injury claim against the at-fault driver (rideshare driver, other driver, or both) requires clearing the serious-impairment-of-body-function threshold under MCL 500.3135 as construed by McCormick v Carrier, 487 Mich 180 (2010). Rideshare cases routinely involve catastrophic injury when the TNC’s $1M layer applies during active-trip status. The TNC liability coverage is bodily-injury coverage, not no-fault PIP, so the threshold and comparative-fault rules under MCL 600.6304 govern the pain-and-suffering portion.
Watch the Rideshare-Exclusion Endorsement
Standard Michigan personal auto policies frequently exclude coverage during commercial use, including rideshare driving. A rideshare driver who relied on their personal policy without buying a “rideshare endorsement” or “TNC gap” rider may find their personal carrier denying both PIP and liability for crashes in Period 1. The TNC’s contingent coverage in Period 1 is typically lower limits than a normal personal policy. The resulting coverage gap can leave drivers and their passengers without adequate first-party PIP and a denied liability claim. Counsel should obtain both the personal policy declarations page and the TNC’s certificate of insurance early in the case.
Deadlines That Catch Rideshare Claimants
- PIP claim: One year from each medical expense under MCL 500.3145.
- MACP application: One year from accident under MCL 500.3174 — hard deadline.
- Third-party tort: Three years from accident under MCL 600.5805(2).
- UM/UIM: Policy-specific contractually shortened limitations, often three years — enforced under Rory v Continental Ins Co, 473 Mich 457 (2005).
- Wrongful death: Three years from death under MCL 600.2922; saving statute under MCL 600.5852.
Frequently Asked Questions
Does Uber or Lyft pay my medical bills if I’m injured as a passenger?
The TNC’s $1 million policy generally pays third-party bodily-injury claims, not first-party PIP. PIP runs through your own auto policy first (or a resident relative’s); if none applies, then the operator/owner’s policy; and only if neither applies, the MACP. PIP and the TNC liability coverage are separate buckets.
I’m visiting Michigan from out of state and was in a rideshare crash. What do I do?
You likely have no Michigan PIP policy. Apply to the Michigan Assigned Claims Plan within one year of the accident under MCL 500.3174. The MACP application is a separate, time-sensitive process. Hire counsel quickly because the deadline is unforgiving.
The rideshare driver was logged on but had no passenger when they crashed. What coverage applies?
Period 1 contingent coverage typically applies — generally $50,000/$100,000 BI and $25,000 PD. The driver’s personal policy may also respond if it includes a rideshare endorsement. Without an endorsement, the personal carrier often denies coverage entirely, leaving the lower TNC limits as the only door.
Can I sue the rideshare driver personally?
Yes, subject to the serious-impairment threshold under MCL 500.3135 and the three-year statute under MCL 600.5805(2). The TNC’s $1 million policy generally responds during active trips. Outside active-trip periods, the driver’s personal coverage and contingent TNC coverage become the recovery sources.
What if both Uber and another driver were at fault?
Multiple defendants in different proportions of fault is the normal posture in a Michigan auto-tort case. MCL 600.6304 governs the allocation. A plaintiff whose fault exceeds 50% is barred from non-economic damages. Each defendant’s policy responds in proportion to allocated fault.
Does my personal auto policy cover me when I drive for Uber or Lyft?
Almost never without a rideshare endorsement. Most Michigan personal policies exclude commercial use. Drivers should add a rideshare or TNC-gap endorsement to close the gap. Without one, a Period 1 crash can leave both the driver and their later passengers under-covered.
Injured in a Michigan Rideshare Crash?
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