With the legalization of marijuana on Oct 17, 2018 the industry has been struggling to keep up with demand. Advocates have been lining up to make orders but for everyone else, a number of pressing questions remain. Many of these questions dig into how marijuana legalization will affect businesses and different industries.
One of the industry’s most likely to be affected is the insurance sector. Let us take a look at how the insurance companies are making changes to cope and what that means for you.
What does it means to your car insurance?
First, it’s important to understand that “Driving under the influence” will now expand to pot users. Bill C-46 (which allowed police officers to do roadside oral-fluid drug screenings) will be expanded to include testing for marijuana. There’s still much debate about the accuracy and effectiveness of the current testing methods on marijuana use. There are some new companies trying to design a better mouse trap, like Cannabix Technologies. Regardless, the point is that checks will be made and drivers will be ticketed if caught over the allowable limit.
For the rates, the consequences are far from clear. Of course if you are ticketed, expect the prices to sky rocket. But for everyone else, it will only be clearer as the insurance build more data on marijuana use and driving behavior. For example, if the data starts to reveal that where you live happened to show an increase in marijuana-related accidents, then your overall premiums (car, home, etc) will reflect that.
What does it means to your home insurance?
The new Cannabis Act allows people to cultivate their own cannabis plants at home. Insurance companies will have to gauge over time to see how homes that grow cannabis will be affected in value as well as the coverage they receive. There are potential mould growth issues and fire hazards that the insurance companies will analyze fully. So, if you are deciding to grow your own, it’s good to keep these things in mind as they may affect your property and the insurance of it.
How can I find the best car insurance rates now?
The reality of it is that the insurance companies are learning to adapt to this change as much as the rest of us. Once they start to understand more about the risks that marijuana brings, your prices will reflect that. To find the best prices, you need an expert to help you navigate all the different companies. You need an agent that will spend the time to help you find the best prices for the most value. If that sounds like what you are looking for, get over to the Contact Us page and we can chat.
If you smoke up, don’t drive!
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