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Potential premium impact on auto insurance from cannabis related claims

Canada’s recent legalization of Cannabis has raised some questions as to how it will affect the public –  particularly when it comes to auto insurance. Ratehub.ca’s senior business unit manager for insurance, Matt Hands, believes the increase in auto insurance premiums due to marijuana legalization is not a matter of why, but when.

“Once insurance providers analyze the data available to them, in most cases, they will need to apply with provincial regulators before they can raise rates,” Hands told Yahoo Finance in an interview. This could mean that it could take months or years for these policies to come into effect.

Data on cannabis-related accidents and impairments in Canada remain scant  as the substance was just legalized weeks ago. But data from the neighbouring USA suggests that auto insurance costs could actually increase as a result.

Source: https://www.insurancebusinessmag.com/ca/news/breaking-news/get-ready-for-higher-auto-insurance-premiums-116230.aspx