The High Cost Of Driving: Cannabis Legalization And Auto Insurance Rates

As more states in the US and Canada have legalized the use of marijuana for medical or recreational purposes, there are concerns about the impact of this on road safety and insurance rates. While some studies have found that the legalization of marijuana has resulted in a small decrease in insurance premiums, possibly due to people substituting marijuana for alcohol, other studies have found that crash rates and insurance claims have increased in states where marijuana has been legalized. It is clear that driving while under the influence of marijuana is dangerous and can impair driving ability, but the lack of an approved roadside test for marijuana use means that it is difficult to enforce impaired driving laws relating to marijuana.

The number of road accidents has increased since the legalization of cannabis

The legalization of cannabis has been a topic of debate in recent years, with some arguing that it could lead to an increase in road accidents and insurance rates. While the impact of cannabis legalization on insurance rates is still uncertain, there is evidence to suggest a correlation between cannabis legalization and a rise in road accidents and fatalities.

Several studies have found a positive relationship between the legalization of medical and/or recreational cannabis and an increase in traffic accidents and fatalities. For example, a study by Jones et al. (2019) reported an increase in the number of drivers testing positive for cannabis after legalization in Arizona. Similarly, Steinemann et al. (2018) observed a significant rise in fatal traffic accidents involving cannabis in Hawaii following legalization.

In addition, the legalization of recreational cannabis has been linked to higher traffic accident rates in some states. For instance, Delling et al. (2019) found an increase in fatal accidents in Colorado compared to control states. Aydelotte et al. (2019) also noted a significant rise in fatal crashes in Colorado and Washington after the opening of recreational marijuana dispensaries.

The presence of marijuana dispensaries may also contribute to the increase in traffic accidents. Sevigny (2018) and Aydelotte et al. (2019) found a positive correlation between the availability of dispensaries and a higher number of traffic accidents.

Furthermore, certain risk factors have been identified among drivers who test positive for cannabis, including being male, young, and consuming alcohol in conjunction with cannabis. The combination of alcohol and cannabis was found to be particularly dangerous, with a higher risk of fatal accidents.

While the evidence suggests a link between cannabis legalization and increased road accidents, it is important to note that the impact may vary across different states and countries due to various factors, including the specific legalization policies implemented and the effectiveness of enforcement measures.

The difficulty of testing for cannabis impairment

As cannabis becomes legal in more places, there is an urgent need for an accurate, portable, and non-invasive way to test for cannabis impairment, especially for drivers. The psychoactive ingredient in cannabis, THC, has been proven to impair cognitive and psychomotor performance, which is dangerous for those behind the wheel. However, testing for cannabis impairment is challenging for several reasons.

Firstly, there is no agreed-upon standard for what constitutes impairment by THC. Unlike alcohol, where a "breathalyzer" test can determine blood alcohol content, THC does not correspond well to functional impairment. Frequent cannabis users may have high levels of THC in their body without being impaired, and THC metabolites can remain in the bloodstream for weeks after the period of intoxication. This makes it difficult to determine if someone is currently impaired by THC.

Secondly, there are currently no scientifically accepted roadside impairment tests for cannabis. Police officers often rely on "behavioral evaluations" or "field sobriety tests" to determine impairment. These tests may include observing the eyes of drivers, having them walk in a straight line, and checking for signs such as red eyes, muscle tremors, or unusual speech patterns. However, these tests are subjective and may not accurately assess impairment, especially when it comes to cannabis.

Thirdly, testing for the presence of THC in the body is not indicative of impairment. THC can be detected in biofluids like blood, urine, and oral fluid, but these levels do not always correlate with cognitive or psychomotor impairment. A person may have low levels of THC in their biofluids and still be significantly impaired, or they may have high levels with no impairment. This discrepancy makes it challenging to determine if a driver is truly impaired by THC.

Finally, the consumption of cannabis is often in tandem with alcohol, making it difficult to isolate and determine the true cause of impairment in the event of an accident.

While researchers are working on developing more accurate and objective tests for cannabis impairment, such as brain imaging technology, as of now, there is no widely accepted or approved roadside test for cannabis impairment. This presents a challenge for law enforcement and insurers, as it can be difficult to prove that cannabis is the culprit in impaired driving cases, and insurers lack data to calculate the true risk associated with cannabis use and driving.

The link between cannabis and alcohol consumption

There is a well-documented link between the consumption of alcohol and cannabis. Cannabis is the most widely used illicit substance globally and the third most used drug in the United States, where 20-50% of people who misuse alcohol also report using cannabis. Meanwhile, over 75% of cannabis users report consuming alcohol, and many people use both substances simultaneously.

The co-use of alcohol and cannabis is associated with a range of negative outcomes, including an increased risk of developing a mental health disorder, poorer clinical treatment outcomes, and heightened risk of prescription drug misuse. It is also associated with greater social consequences, such as an increased likelihood of driving under the influence, and more frequent consumption of both substances.

Some studies suggest that the use of cannabis may reduce alcohol consumption, as people substitute it for alcohol. This substitution effect may lead to a reduction in drunk driving and make roads safer. However, other studies have found that the legalization of cannabis leads to an increase in traffic collisions and insurance claims, suggesting that cannabis and alcohol consumption may be complementary, with people consuming more of both as a result.

The order of consumption also seems to matter. Smoking weed after drinking alcohol may intensify the effects of weed, as alcohol increases the absorption of tetrahydrocannabinol (THC), the psychoactive component in cannabis. Conversely, weed use before alcohol may slow down the rise in blood alcohol levels, reducing or delaying the sensation of being drunk, which may, in turn, increase risky behaviour and the likelihood of alcohol poisoning.

Overall, the co-use of alcohol and cannabis is associated with a range of negative outcomes and increased consumption of both substances. While some studies suggest that cannabis may act as a substitute for alcohol, reducing drunk driving, the legalization of cannabis appears to lead to an increase in traffic collisions and insurance claims. More research is needed to fully understand the complex relationship between alcohol and cannabis consumption.

The impact of cannabis legalization on insurance premiums

The legalization of cannabis has had a varied impact on insurance premiums, with some studies indicating an increase in insurance claims and others suggesting a decrease. The conflicting evidence makes it challenging to determine the precise effect of cannabis legalization on insurance rates. However, it is clear that cannabis legalization has led to a complex set of considerations for insurers, policyholders, and lawmakers.

The Case for Increasing Premiums

Several studies have found a positive correlation between cannabis legalization and insurance claims involving traffic collisions. The Highway Loss Data Institute (HLDI) reported in 2017 that states that had legalized marijuana, such as Colorado, Washington, and Oregon, experienced a 3% increase in insurance claims from traffic collisions compared to states where marijuana was still illegal. This trend was further supported by a separate study conducted by the Insurance Institute for Highway Safety (IIHS), which found a 6.5% increase in injury crash rates and a 2.3% increase in fatal crashes from 2009 to 2019 in states with legalized recreational marijuana. These findings suggest that the increased availability of cannabis contributes to a higher number of accidents, which would typically lead to higher insurance premiums to cover the increased cost of claims.

Additionally, there is a concern that cannabis legalization could result in a greater number of impaired drivers on the road. Marijuana contains chemicals, such as THC, that impair one's motor skills and judgment, similar to the effects of alcohol. As a result, there could be a rise in accidents caused by impaired driving, leading to higher insurance claims and, consequently, higher premiums.

The Case for Decreasing Premiums

On the other hand, some studies suggest that legalizing medical cannabis may lead to a reduction in auto insurance rates. A study published in Health Economics in 2022 analyzed the effects of medical cannabis on accidents and insurance premiums. It found that insurance premiums fell by approximately $22 per year in states that had legalized medical marijuana. The authors of the study attributed this decrease to the substitution effect, where drivers choose cannabis over alcohol, resulting in fewer alcohol-impaired drivers on the road. With fewer alcohol-related accidents, insurance companies would have lower payout amounts, leading to reduced insurance premiums for all drivers.

Furthermore, the legalization of medical cannabis is estimated to have reduced health expenses related to car accidents. The aforementioned study in Health Economics estimated a reduction of $820 million in health expenses in states that have legalized medical cannabis, with a potential additional savings of $350 million if legalization were implemented nationwide. These savings could contribute to keeping insurance premiums lower, as the cost of claims decreases.

Challenges and Future Considerations

While the evidence suggests conflicting impacts on insurance premiums, it is important to recognize the challenges in determining causation. For instance, in fatal accidents, testing for marijuana use is infrequent, and the consumption of cannabis is often accompanied by alcohol use, making it difficult to isolate the primary culprit in such cases. Additionally, there is currently no widely accepted roadside test for cannabis impairment, making it harder to enforce impaired driving laws related to cannabis.

As more states consider legalizing cannabis, further research, and data collection are necessary to fully understand the impact on insurance premiums. Insurers will need more comprehensive information to accurately calculate the risk of insuring drivers in states with legalized cannabis and set appropriate premiums. In the meantime, public education about the dangers of driving while impaired by cannabis and the development of reliable testing methods for cannabis impairment will be crucial in mitigating potential negative consequences on road safety and insurance rates.

The effect of cannabis on driving ability

The impact of cannabis on driving ability has been the subject of extensive research. While it is established that cannabis can negatively affect driving ability, the extent and precise nature of this impact are not yet fully understood.

Short-Term Effects of Cannabis

Cannabis is a psychoactive drug that can act as a depressant or a stimulant, and its effects vary from person to person. The most common short-term effects of marijuana use include altered senses, impaired short-term memory and concentration, and an altered sense of time. It has also been proven to slow down reaction time and cause erratic driving.

Cannabis and Driving

Studies have found a relationship between acute (short-term) cannabis intoxication and impaired driving ability. Cannabis is the most frequently found illicit drug in the blood of drivers involved in motor vehicle crashes, including fatal ones. A 2017 report from the National Academies of Sciences, Engineering, and Medicine concluded that the risk of being involved in a crash increased after cannabis use. However, a study by the National Highway Traffic Safety Administration found no significant increase in crash risk attributable to cannabis use.

The impact of cannabis on driving ability can be challenging to determine due to several factors. Firstly, cannabis can remain detectable in body fluids for days or even weeks after intoxication. Secondly, it may affect occasional and regular users differently. Finally, cannabis is often consumed alongside alcohol, which appears to increase the risk of collisions compared to the use of either substance alone.

Cannabis Legalization and Insurance Rates

The legalization of cannabis has sparked concerns about its potential impact on auto insurance rates. While some studies suggest that insurance claims involving traffic collisions have increased in states where cannabis has been legalized, resulting in slightly higher premium hikes, the direct link between cannabis legalization and insurance rates remains uncertain.

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