Much of the discussion of gun insurance that is currently going on is for requiring that gun owners have liability insurance covering injuries from their firearms. There is often a question as to whether it would be necessary for the owner to have been negligent in the incident or if a concept of strict liability would be made to apply. This would require payment regardless of fault.
No-Fault car insurance works differently in most accidents because the claims are made to the injured persons own insurance. But if a pedestrian is killed or injured in many states with No-Fault insurance, the insurance company for the vehicle involved is required to pay claims up to some limit. This would work very well for gun insurance as many times there is no clear fault on the part of the gun owner if a person is injured. Especially if the gun is in the hands of someone other than the owner.
Example from Kentucky:
Personal Injury Protection (PIP) Coverage
Kentucky requires basic PIP coverage on all motor vehicles except motorcycles. Basic PIP is to be paid by the insurer of the vehicle in which the injured person is riding at the time of an accident, or the vehicle which strikes a pedestrian, regardless of who was at fault in the accident. Basic PIP provides up to $10,000 per person per accident for medical expenses, lost wages and similar “out of pocket” costs due to an injury. Higher benefits and deductibles are optional.
Example from New York State:
No Fault automobile insurance has the policy owner collect from his own insurance. For an accident with a pedestrian various states have different rules. In New York State which has no-fault coverage for automobiles there is coverage for Medical costs regardless of fault. The amount is limited currently to $50,000. Other kinds of damages to pedestrians and amounts over the limit are handled by regular liability laws and lawsuits.– From the blog of the Schlitt Law Firm in New York State
Regulation 68 which controls No-Fault insurance in NY state defines an ‘Eligible Injured Person’ to include ‘(c) any other person who sustains personal injury arising out of the use or operation of the insured motor vehicle in the State of New York while not occupying another motor vehicle.’ It also defines ‘Basic economic loss’ to include up to $50,000 consisting of Medical Expense, Work Loss (with a maximum of $2,000 per month), some other things and a Death Benefit.