I recently saw a client in the Kroger parking lot. He drove up to me and said “Hey, if I run you over, I’d be OK, right? I have good insurance, right?” I said, “If you run me over, what matters is that I have good insurance!” We chuckled and he drove off without running me over. I’ve had this discussion multiple times in the Kroger parking lot with various clients. I don’t know if it’s ME, or my profession, but knowing that a few folks in town think it would be funny to run me over makes me pay extra attention as I walk through the Kroger parking lot!
Here’s how insurance would work in real life if you ran me over:
We’re in a no-fault state, and I chose UNLIMITED Personal Injury Protection (PIP) on my auto policy, so my policy would pay for the medical costs to get me as back to normal as possible, as long as I’m incurring the costs. I don’t need to sue you to get my medical costs paid for, even though it was your fault. There are a few situations where I could sue you, including scenarios where I can no longer earn a living, or if I’m no fun around the house anymore (provided Mrs. Michael testifies that I was a total riot before the accident).
If my auto policy had LIMITED PIP limit or I had opted out of PIP entirely, the odds increase that I would have some unreimbursed medical costs. In this case, I would need to sue you, and your Auto Liability coverage would respond. This could take months or years to resolve, especially if my costs are greater than the liability limit on your auto policy, because then things get ugly for both of us.
My recommendations: (1) just don’t run me over; (2) ask your insurance agent how your policy would protect you if someone ran you over and make sure the outcome is something you can live with!