In 2018, the new law authorizing cannabis use in Canada came into effect. And today, two years later, we are in a better position to assess the impact of this legalization on the daily lives of Canadians. According to a study conducted and published in February 2020 by Statistics Canada, no significant change in consumption rates has been observed. That’s good news.
Nevertheless, 1.2 million Canadians reported having been in a vehicle whose driver had consumed cannabis within two hours of driving. This is a punishable offense under section 320.14 of the Criminal Code:
Cette semaine, Assurances Multi-Risques vous propose donc un article au sujet des impacts de la légalisation du cannabis sur vos habitudes de conduite et sur votre assurance automobile! Pourquoi? Parce que c’est important d’être bien renseigné à ce sujet et surtout, car, conduire avec des facultés affaiblies (alcool ou drogue) est un acte qui peut être dangereux. Alors, lisez bien ce qui suit!
What impact does the legalization of cannabis have on auto insurance premiums in Canada?
As highlighted by Economical in an article published in March 2020, legalization is still relatively recent in Canada; many variables remain unknown regarding the impact of cannabis use and cultivation on Canadians and their insurance coverage.
Even today, it is difficult to accurately analyze and comment on the impact of marijuana legalization on the overall cost of auto insurance premiums in Canada.
One thing is certain: cannabis possession and consumption pose an additional risk for insurance companies, and driving under the influence of cannabis is a violation of cannabis laws that can result in criminal charges and may lead to a denial of insurance claims, cancellation of your policy, and/or an increase in your premiums.
The consequences of offenses for impaired driving due to cannabis (or other drugs and alcohol)
For a first offense, you will receive a $1,000 fine and your driver’s license will be revoked for a minimum period of one year. Your car insurance premium will increase, and when you are able to drive again, expect to pay a hefty premium to insure yourself (assuming your current insurer agrees to cover you!). In fact, there is a good chance that you will no longer be able to obtain insurance from a “standard” insurer.
If you commit a second offense, you will face 30 days in prison. Your driver’s license will be revoked for a minimum period of two years, and you will have to take out insurance with an insurer that accepts so-called “non-standard” or “outside the norm” risks. No regular insurer will cover this type of case!
A third offense (or more) will result in a license suspension of at least three years and 30 days in prison (plus 120 days in prison for each additional offense, e.g., 2 offenses = 30 days in prison, 3 offenses = 150 days in prison, etc.). Think twice! As for your insurance, buckle up, because the bill will be steep.
In conclusion
On dit souvent qu’il vaut mieux prévenir que guérir! Alors la meilleure façon de vous éviter des problèmes d’assurance, c’est de respecter la loi. Le cas échéant, vous avez droit à une seconde chance, et chez Assurances Multi-Risques, nous nous faisons un point d’honneur à trouver un bon assureur pour chacun de nos clients, qu’il ait un dossier criminel ou non!
Always make sure you tell your insurance broker the truth about this, because it’s much more important than you think!