8 Things to Know About Marijuana And Your Insurance

So far, 25 states plus the District of Columbia have fully legalized the use of marijuana, with 12 others legalizing it for medical use only.

One national study found that men were more likely than women to use cannabis both recreationally and medically — and to become dependent on it. This affects different forms of insurance, especially auto and life, as sex can play a role in rates.

The exact legislation and levels of cannabis legalization vary by state, leaving many people with questions. A once-simple yes-or-no question like, "Are you a smoker?" now has a gray area, as method, frequency and reason for consuming could all play into the answer.

Have questions on a specific insurance product?

Health insurance

Health insurance has been known to charge tobacco smokers higher rates, as they are more susceptible to smoking-related illnesses. Though the maximum increases under the Affordable Care Act vary by state, the increase in health insurance rates for smokers could be as high as 50%. Health insurance penalties for marijuana users — recreationally or medicinally — remain unclear, especially when you need to choose a broad category on a general form.

Do I check ‘smoker' on health insurance forms if I only use marijuana?

Use your judgment, but a health insurance company may define a smoker as anyone who uses tobacco or cannabis more than a few times a month.

Most insurance agencies define tobacco products as:

Read the fine print and check with your insurance company if a product you use is on their defined list.

Does my health insurance cover medical marijuana if recommended by my doctor?

Cannabis products are classified federally as a Schedule 1 controlled substance. Due to this, even though a majority of states have legalized the use of marijuana in medical treatments, patients will have to pay for it out of pocket at a dispensary.

Can my Health Savings Account or Flexible Spending Account fund my medical marijuana?

Medical marijuana can provide relief from health conditions such as nausea, chronic pain, glaucoma and muscle spasms. Typically, a known treatment like this would qualify for reimbursement, but since cannabis is still illegal federally, you cannot use your HSA or FSA to purchase it.

Auto insurance

Driving under the influence applies to alcohol, illegal drugs and sometimes even prescription and over-the-counter medications.

Men were found not only to be more likely to use cannabis, but also 40% more likely than women to drive under the influence of marijuana, according to the 2022 National Survey on Drug Use and Health.

The Governors Highway Safety Association said 44% of fatally injured drivers in 2016 tested positive for drugs.

Law enforcement is still working on a standardized test for drug impairment. Adding to the difficulty, the side effects and physiological reactions can result in a misdiagnosis at the time of the event. The US Department of Transportation's National Highway Traffic Safety Administration has taken strides to combat drug-impaired driving, providing specialized training and equipment for field sobriety testing.

One way that Canada, where cannabis use was legalized in 2018, addressed impaired drivers was by introducing stricter laws: Law enforcement can test any driver who has been stopped, and, if found guilty, the penalty is a maximum of 10 years in prison.

Safety concerns

Driving after using marijuana can decrease the ability to make sudden decisions while traveling and increase the risk of an accident.

As the number of states legalizing marijuana for medicinal or recreational purposes rises, the debate over how it affects driving will continue. Over time, standardized tests will likely become available, and states will continue to create new legislation that limits driving while under the influence of pot in order to minimize accidents and fatalities.

Is it illegal to drive while high?

Yes. If a substance — whether alcohol or drugs — impairs your ability to drive, it is illegal. This includes recreational drugs like marijuana, as well as prescriptions. Compared with alcohol, which has a legalized intoxication limit, drug impairment is harder to identify.

In many places, law enforcement officers can conduct an arrest based solely on observed impairment, no matter the THC level.

What happens if I am caught driving high?

Just as medicinal and recreational cannabis use varies widely by state, so do penalties for a marijuana-related DUI. Law enforcement relies on a number of methods to understand intoxication levels, including field sobriety tests, chemical testing or the guidance of a drug recognition expert (DRE). If the DRE officer deems a driver impaired, the driver is brought to the police station for a 12-step examination and potential toxicology test.

Like with alcohol, previous drug convictions play a role in the penalty. It can range from license suspension to substance abuse treatment and probation.

If driving under the influence of drugs results in your causing an injury or death, your penalties and car insurance are likely to increase, as companies will see you as a greater risk.

I received a DUI for drugged driving. What are my options?

After receiving a DUI, you are often required by the courts or state to file an SR-22 certificate of insurance to reinstate your license. This proves that you have the required amounts of liability coverage on your auto insurance policy and are able to pay for damages you may cause.

Life insurance

Tobacco smokers pay an average of 215% more for life insurance than nonsmokers. But it's not clear if marijuana use has the same impact.

I smoke cannabis medicinally. Will it affect my life insurance policy?

The reason and/or condition for the medical use will help determine the rate implications. If cannabis is used to treat a significant health issue, the health issue itself might raise rates.

In some cases marijuana users are offered nonsmoker rates. For example, those who use it occasionally to help with insomnia may not see increased rates, due to the nature of their condition.

I smoke marijuana recreationally. Will it impact my life insurance policy?

Frequency and quantity will play a major role in determining if your rates will increase. Other risks associated with recreational use of alcohol or drugs and lifestyle concerns will also be assessed.