Rideshare Insurance in Michigan

In Michigan, drivers must carry minimum auto liability coverage of 50/100/10 + PIP. Michigan has among the highest auto rates nationally, partly due to its PIP requirements (reformed in 2020). The average auto insurance rate in Michigan runs about $2,691 per year, and where rideshare insurance fits into that depends on your coverage level and profile.

Rideshare insurance bridges the coverage gap that exists for drivers who use their personal vehicle for Uber, Lyft, or other transportation network companies (TNCs). Your personal auto policy typically excludes commercial use, and the rideshare company's insurance only provides full coverage when you have a passenger. The gap occurs when you're logged into the app waiting for a ride request.

Most rideshare insurance comes as an endorsement (add-on) to your existing personal auto policy. It extends your personal coverage to include the periods when you're logged into the rideshare app but haven't yet accepted a ride. Once you accept a ride and during the trip, the rideshare company's commercial policy takes over as primary coverage.

Without rideshare insurance, an accident while waiting for a ride request could leave you completely uncovered — your personal insurer may deny the claim because you were driving for commercial purposes, and the rideshare company's coverage may be minimal during this period. The endorsement is relatively inexpensive and prevents this dangerous coverage gap.