Study: Auto insurance to feel contact high
Car coverage rates predicted to jump 6% due to legal weed
Massachusetts drivers can expect to see their auto insurance rates go up thanks to legalized pot — even if they don’t smoke it themselves, industry experts say, with a new study showing car crashes are on the rise in states where recreational marijuana is sold.
“You’re looking at an increase of around 4 to 6 percent in overall coverage,” predicted James Lynch, chief actuary at the Insurance Information Institute.
The new study from the Insurance Institute for Highway Safety found car crashes are up by as much as 6 percent in Colorado, Nevada, Oregon and Washington — all states with legal pot sales — compared to neighboring states that haven’t legalized weed for recreational use.
“There’s a pretty direct correlation,” Lynch said of the insurance study’s findings, noting that insurance rates will rise to cover the cost of increased accident rates. Lynch predicted that Massachusetts residents will see their rates go up within the next one to two years.
The opening of retail pot shops in Massachusetts is expected soon, as state regulators approved final licenses for two shops earlier this month.
“We want to make people aware that there is a social cost involved,” Lynch said.
The IIHS study compared Colorado’s accident rate with Nebraska, Wyoming and Utah, and compared Oregon and Washington with Idaho and Montana.
Mary Maguire, a spokeswoman for AAA Northeast, said the association is “certainly concerned” about the study and a potential increase in car crashes in Massachusetts. She said AAA is looking into the impact on roadway safety and trying to create “common sense regulations” to keep drivers safe on the road.
IIHS analysts controlled the study for differences in the rated driver population, insured vehicle fleet, the mix of urban versus rural exposure, unemployment, weather and seasonality. According to IIHS, collision claims are the most frequent claims that insurers receive.
Massachusetts Cannabis Control Commissioner Britte McBride said employees of marijuana retailers should take interest in preventing impaired driving.
“We require owners, managers, and employees to be trained on subjects like detecting impairment and the physical effects of marijuana on the human body and provide that information to consumers. Drivers who consume marijuana must educate themselves about the risks and take precautions, including making plans for sober transportation, for the safety and protection of everyone on the road,” McBride said in a statement.
Marijuana is still an illegal controlled substance under federal law and driving under the influence of pot is illegal is all 50 states.