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April 1, 2024

There is no denying it anymore: the legalization of marijuana has made it so that using marijuana (and marijuana products) is incredibly common. This shift in attitude and behaviour, though, has impacts on many facets of our lives – including the insurance we have on our cars. Since marijuana can impair our driving, insurance companies are making some changes that will affect everyone. Here’s what you need to know.  

How soon will automobile premiums start to rise? 

The impacts of marijuana use on driving, and accidents that may result from it, will take months if not years to really show. Insurance companies will have to analyse all the traffic and accident data they have so that they have sufficient evidence for requesting marijuana-related premium increases.  

In the meantime, some insurance companies across Canada are looking at statistics from US states that have had legalized marijuana for several years. Some states saw increases as high as 6% in non-fatal car crashes when compared to states where marijuana remained illegal.  

Does it impact other forms of insurance? 

You may be thinking that the legal use of marijuana will only impact your auto insurance, but that isn’t the case.  

For instance, it’s legal to have up to four personal marijuana plants on your property in most provinces. These plants would be treated exactly like any other plant you may have around your home. However, if you have more than four plants and something happens where you need to submit a claim, your home insurance claim could be denied because you exceeded the legal limit for plants allowed.  

Further, if people in your home smoke cannabis then they will not be eligible for a non-smoking home insurance plan discount that many companies offer.  

In the case of life insurance, you may be using cannabis for medical related reasons, and you may be asked about your medical condition during your insurance interview. If the use is solely related to the medical condition and not recreational, this will likely be taken into account.  

However, recreational cannabis users may see increased premiums for using cannabis products or their insurance application.  

Legal marijuana use across Canada 

While marijuana is legal across the country there are different laws in each province surrounding who can purchase it and where it can be purchased.  

You will need to make sure you are following the laws in your region when consuming marijuana products.  

If you have questions about the laws governing marijuana use, the Government of Canada website has great resources.  

Contact ICD Insurance today 

Do you have questions related to how legalized marijuana might affect your insurance. Contact ICD Insurance today to speak to a broker.