NJ legal marijuana may also mean car insurance gets high

New Jersey drivers could expect to see higher auto insurance rates down the line if the state legalizes the recreational use of marijuana, based on crash data from states that already have gone that route.

The Highway Loss Data Institute — a research organization wholly supported by auto insurers — says legalization of recreational marijuana in Colorado, Oregon and Washington resulted in a rate of collision claims that was about 3 percent higher than would have been expected without the updated laws.

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“We are seeing rates go up, and one cause of rates climbing in these states is the presence of recreational marijuana,” a spokesman for the insurance industry, James Lynch, told New Jersey 101.5.

At $1,375, New Jersey’s average auto insurance premium ranks as the 14th-highest among the states, according to a July report from Insure.com. The national average is $1,318.

To see how the cannabis industry is trying to unravel an image problem that's been decades in the making, watch the video at the top of the page.

With the election of Democrat Phil Murphy as governor, legalizing pot was expected to be a front-burner agenda item in Trenton. Murphy's campaign included calling for legalization, both to end the disproportionate jailing of blacks but to also claim $300 million a year in taxes from a regulated market.

According to various studies, blacks and whites use marijuana at about the same rates, but blacks are significantly more likely to be stopped by police, resulting in substantially more arrests for marijuana.

Watch the video at the top of the page for more information on the state's tax revenue from marijuana sales. The story continues below after the photo gallery.

However, several lawmakers, including Democrats, have expressed reservations about going forward. State Sen. Ronald Rice, D-Essex, called for hearings, "to make sure that we really delve into the details of this issue,'' he said.

Rice lists the potential increase in motor vehicle accidents from impaired driving as a concern. So does Sen. Joe Pennacchio, R-Morris, who in a statement said, "The reality is that legalizing weed won’t solve New Jersey’s affordability crisis, especially when you consider how much money we are going to have to spend just to make sure law enforcement officials have the resources to handle a massive increase in drugged driving.”

Christine O’Brien, president of the Insurance Council of New Jersey, told New Jersey 101.5 that insurers in the Garden State are monitoring the trends elsewhere, but that rate hikes would not occur in anticipation of increased crashes and claims.

Bob Jordan bjordan@gannettnj.com