By CRM staff
Toronto, Ontario — October 30, 2018 — The cost of auto insurance is on the rise in several provinces. And, with the recent legalization of cannabis, Canadian drivers aren’t entirely sure if this will have a larger impact on their insurance rates.
LowestRates.ca, an online site for personal finance products like insurance, found that 91 percent of Canadians are unsure how the legalization will impact their rates.
The site also revealed in a report of the 2018 third quarter results that insurance rates increased in Ontario, Alberta and Atlantic Canada.
In Alberta and Atlantic Canada, rates had increased by 1.79 percent compared with the prior quarter, and Ontario’s had increased by 3.57 percent.
The influence of cannabis legalization could raise the rates even more.
A study released in October by the Insurance Institute for Highway Safety gives some insight. It found U.S. states that legalized cannabis have accident rates 5.2 percent higher than neighbouring states. If legalization leads to an increase in impaired driving and more accidents, it’s likely rates will see an increase in Canada as well.
“It’s a time of unknowns in the Canadian insurance industry,” said Justin Thouin, co-founder and CEO of LowestRates.ca.