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Even if you do not use cannabis, it is likely that legalization affects you.
Insurance is one of the areas where cannabis will have a huge impact. Companies have been preparing for legalization for a long time, but there are still many questions about its effects on everything from auto insurance to health insurance.
For example, how will officers who suspect a driver of being a cannabis victim prove it in court? After all, cannabis testing is difficult. And, will those who grow cannabis at home have to pay higher premiums?
Let's break down what we know and the remaining questions we have below.
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Will auto insurance rates go up?
No car insurance company has announced that it will increase its rates due to legalization.
What we do know, is that in Colorado, where cannabis was legalized in 2014, average car insurance rates climbed 54.2% between 2011 and 2017. Today however, this increase can not be attributed to legalized cannabis. Colorado is struggling with local insurance issues, such as hail storms, and faces the same problems as other states, such as distracted driving.
But states that have legalized cannabis have all seen an increase in accidents and auto insurance premiums. In the legalized states, automobile insurance premiums increased by an average of 3.2% between 2016 and 2017, against only 1.6% for those where it remains prohibited.
It is unclear whether some legal institutions will automatically result in a canceled policy or higher premiums.
Colorado law enforcement forces said the legalization had resulted in more charges of impaired driving and accidents, which added to the costs for insurance companies and insurance companies. forced to increase rates.
The good news is that Canadian insurers have rushed to conduct driving and cannabis awareness campaigns, highlighting the importance of not driving after using cannabis.
What about home insurance?
Home insurance companies have long had policies canceled if they discovered that a home was used for cannabis cultivation.
With legalization, home insurance companies could still theoretically cancel a policy if the number of plants grown is greater than the law or medical license allows.
Unfortunately, it is unclear if some legal factories will automatically result in a canceled policy or higher premiums.
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Historically, insurers have canceled policies in favor of illegal producers because they often changed their power cables to allow a lot of grow lights or because growers increased the moisture in their plants, which often led to mold.
But critics say that many will grow cannabis plants the same way they would house plants. And insurers do not charge homeowners higher premiums simply because they have factories.
The best approach here is to call your home insurance company and be honest about the cannabis plants you grow. So when the time comes to make a claim, you will not notice that your factories have canceled your policy.
What is the impact on health and life insurance?
For insurers, smoking is a high-risk activity that automatically increases life insurance premiums and can have an impact on everything from home insurance to travel insurance.
The good news for cannabis smokers is that many insurers in Canada have removed cannabis use as a "high risk" activity. This means that if you use cannabis, you will not pay higher life insurance rates as a tobacco smoker would.
More from HuffPost Canada:
Some health insurance providers have already begun to offer group insurance plans the addition of cannabis for medical purposes, which means that if you have a prescription, you will be eligible for reimbursement of your expenses.
At present, it should be noted that there is still a lot of research to be done to properly assess the impact of legalization. The insurance industry will be watching closely for potential cost effects in the coming year.
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