Car insurance rates to increase in marijuana states

[TexasTowelie]

MONTPELIER - Car insurance rates are likely to increase 4-6 percent in states with legal marijuana, a leading insurance industry actuary says.

“You’re looking at an increase of around 4 to 6 percent in overall coverage,” James Lynch, chief actuary of the Insurance Information Institute told the Boston Herald Oct. 24. Even if drivers don’t smoke pot themselves, their insurance rates will increase regardless, Lynch said.

A 6 percent increase in insurance premiums on all 615,950 registered vehicles in Vermont would cost about $28.3 million. The average Vermont car insurance premium is $764, according to Reviews.com. A 6% increase would add $46 in annual premiums, for a total of $810.

The rate hike would result from the increase in car crashes in pot-legal states, Lynch said. In Colorado, Nevada, Oregon and Washington, crashes in pot-legal states are up about 6 percent compared to neighboring states.

Read more: https://www.suncommunitynews.com/articles/the-vermont-eagle/state%C2%A0headliners-%C2%A0-car-insurance-rates-to-increase-in-mariju/

[Cattledog]

1. I'd gladly pay more if the legalized it here in GA.

[NutmegYankee]

2. Just pass laws that make it illegal to raise the rate based on legalizing pot.

Throw an executive or two in jail as a warning. Soon there will be too many states to ignore if they want to make a profit.

[Dennis Donovan]

3. No idea if there's a case, but I hope this is challenged in the courts

[LSFL]

4. Insurance rates are based on hard data

More accidents on average equals higher rates regardless of the cause.

Stop being so paranoid. .

[DiverDave]

5. Yeah

Insurance companies NEVER raise rates to, you know increase profits..

[apcalc]

6. Unsurprising to me.

Waiting for more data as well...