The state of New York has an idea to reduce gun ownership: make every gun owner carry a million-dollar insurance policy.
Well, it's not a new idea. We've talked about this before, both here and at the now-defunct Winds of Change. Then as now, gun-haters were sure that the expense of such a policy would cripple interest in guns. The truth is, if such policies were widely offered, they'd be pretty cheap.
I have a million dollar liability policy as part of my homeowner's insurance. The cost of this policy is a few tens of dollars a year -- on the order of thirty bucks. I spend more on coffee, monthly, than I do annually on this policy. And that is in spite of the fact that this covers a wide degree of risks, everything from 'slipped on the ice on your walk in the winter' to 'chose to climb a tree on the back 40 and broke my leg.' It covers you if you get burned on my fireplace, or if a roofbeam should fall on your head. Lots of stuff is covered.
The gun policy they're proposing only covers one thing: if I should shoot someone and get sued for it.
Let's run through that in very round numbers to make the math easy. Now there are 300,000,000+ guns in America, owned by around 100,000,000 households. There are just around 100,000 gun injuries or deaths a year. Two-thirds of gun deaths are suicides. Those that are intentional homicides wouldn't be covered by insurance policies because they are crimes, and you can't insure yourself against the consequences of intentionally committing a crime. Only the rare accidental shooting (489, or about half of one thousand in 2015), or a lawful self-defense that resulted in a successful lawsuit, would be covered.
So we've got around 500 annual accidents in a nation of three hundred million guns; assuming all guns were equally likely to cause that injury, and a 100% probability of the insurance company having to pay a claim over it, then the probability that your insurance company has to pay a claim is about .000016. Add in estimated defensive gun use, and there's another group of guns you'd have to insure, but again it's divided over 300,000,000 guns owned by 100,000,000 households. Estimates for how often guns are used defensively vary widely, but the low side numbers are all from the gun-control side; if they believe their own numbers, it's going to be a vanishingly small number of incidents that need to be paid out.
It's a million-dollar policy, but the average cost of a gunshot wound is only $150,000. Assuming that adding in the defensive uses to the accidental shootings fully doubles the number of payoffs, then we've got $150,000 x 1,000 incidents, or $150,000,000 in annual payouts. Divide that by 300,000,000 guns, and we'll need about fifty cents a gun to cover that.
So, if you own six guns, that's three dollars a year. Of course it'll be a bit higher, because the insurance company would have operating costs. But it's not going to break the backs of the firearms injury, even if it survives constitutional review.
