A Marijuana User’s Guide To Life Insurance - Forbes

Posted: 14 Feb 2020 06:01 AM PST

More than 11.8 million young adults said they used marijuana in the past year in 2018, according to the National Institute on Drug Abuse. With the prevalence and acceptance of marijuana use growing, it's important to understand how marijuana can impact your life and health — even your finances.

For marijuana users, one of the many aspects of life likely affected is life insurance. The ability to buy affordable life insurance is often an important part of a solid financial plan. But when marijuana users get jobs and start families and want life insurance, they can find that pot use dings them.

Marijuana Use and Health

Right after use, marijuana impairs judgment and short-term memory. It also alters perception, making it dangerous to drive, among other activities.

We couldn't find definitive studies that prove that using marijuna will reduce a person's life expectancy. The Society of Actuaries, which often studies "mortality," says it has no specific studies on marijuana use. But marijuana is associated with lifetime psychiatric problems, according to a 2018 study by the National Institute on Drug Abuse.

Long-term use, from age 18 into a person's 20s and later, is also associated with health problems at age 50. While the marijuana is not shown to directly cause psychiatric and health problems, researchers have linked the use of pot to these issues later in life.

How Often Do You Use Marijuana?

When you apply for life insurance, you'll likely face a question about whether and how often you use marijuana. Your answer will help group you into a health class, such as super-preferred, preferred or standard. This will help determine your life insurance rate, along with your answers to many other health and lifestyle questions.

"A lot of people are reluctant to admit recreational marijuana use," says Robert Bland, CEO of LifeQuotes, an online life insurance agency.

Occasional marijuana users can sometimes qualify for non-smoking rates, depending on the company. This is key, because getting classified as a smoker will mean higher life insurance quotes. Occasional use is sometimes defined as only one or two times a month. Each life insurance company decides its own parameters for what's "occasional."

"The basic adage is, if you smoke marijuana, you're a smoker," says Bland. "So when people hear that they tend to say they don't smoke or it was during a vacation as a teen to Boulder, Colorado."

How Much Will Marijuana Affect Your Life Insurance Rates?

Life insurance quote increases based solely to marijuana use will vary based on your age, gender and amount of coverage requested. That makes it hard to pin down an average increase. Here's how much average quotes go up for 30- and 40-year-old men and women who are shopping for a 20-year term life insurance policy of $500,000.

Life Insurance Quote Increases for Marijuana Users

Gender and age	Increase for occasional marijuana use (2 or less times per month)	Increase for regular marijuana use (more than 2 times per month)
Male age 30	23%	47%
Male age 40	23%	70%
Female age 30	22%	34%
Female age 40	29%	58%
Methodology: We averaged the five lowest life insurance quotes we found online for healthy men and women of average height and weight. We used quotes for a 20-year $500,000 term life insurance policy.

What About Medical Marijuana?

Whether you say you use marijuana recreationally or for medical reasons probably won't matter in terms of the resulting life insurance rates based on use. For medicinal marijuana users, a life insurance company will want to know about the underlying medical condition that led to the marijuana. And that medical condition can also affect the life insurance quotes you get.

"A lot people say for it's pain and that's not enough, that's way too general. They want to know what's causing the pain," says Bland.

For example, back pain is common and won't lead to higher rates. But using marijuana during chemotherapy is quite another matter and the life insurer will then focus on the medical condition.

Be Honest About Your Marijuana Use

The goal of a marijuana user who's buying life insurance should be to get a non-smoking rate, especially if the use is occasional. Those who ingest marijuana, such as edibles, should be able to get a non-smoking rate.

Regardless of how often you use marijuana, and whether it's recreational or medicinal, it's important to be truthful on any life insurance application. Remember, you're going to be signing your name to the application and attesting that the information is true.

"Misrepresentations" can be viewed as fraud and, at worst, can result in a company voiding the policy later.

"We advise customers that it's a crime in all 50 states to make a misrepresentation on an insurance application," says Bland of LifeQuotes. "When you're formally applying, you're authorizing the insurer to check all outside records on you, including doctor records. When you fill out an application, you're baring your soul. All your answers on your application better match your doctor records and history."

You'll likely be required to take a life insurance medical exam, which includes giving blood and urine samples. This is true for many life insurance buyers, not just marijuana users. The life insurance company will also likely look at your medical records and current and past prescriptions. It will pull your motor vehicle record. It will access your past answers to individual life and health insurance applications.

"The buying public needs to realize all your information is verifiable," says Bland.

If you weren't honest about marijuana use on the application and evidence pops up in your medical records or in the life insurance exam, "look for a decline on your application. Insurers see it as a moral hazard. What else have you lied about? They'll take a pass," warns Bland.

Adding Other Issues To Marijuana Use

Expect higher rates if there are other factors that will push your life insurance quote up, or even result in a denial. This includes health conditions and black marks in your history, such as a history of substance abuse, a criminal record or moving violations like a speeding ticket or DUI. These are called "rateable" issues.

"If you have rateable issues, work with an agent who will do preliminary quotes for you. You provide all the information and they anonymously shop you first, rather than formally apply," advises Bland. Many agents will perform this service, he says. That way you'll know where you stand before you apply. You don't want to be sending applications to multiple companies.

Summary: Life Insurance Buying Strategy for Marijuana Users

Be 100% truthful on a life insurance application.
Be prepared to take a life insurance medical exam. The results should match what you've said on the application.
Find an agent who will shop the market for you anonymously before you formally apply.
Try to get a non-smoking life insurance rate.

Forbes adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author's alone and have not been provided, approved, or otherwise endorsed by our partners.

Best Cheap Car Insurance in Las Vegas for 2020 - NerdWallet

Posted: 20 Feb 2020 03:17 PM PST

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn't influence our evaluations. Our opinions are our own.

When it's time to buy car insurance, Las Vegas drivers may have a difficult time finding good rates.

Auto insurance rates in Las Vegas are about 25% above the average for Nevada — and around 50% higher than in Reno, NerdWallet's 2020 rates analysis found.

But if you make the time to compare car insurance quotes, Las Vegas rates may not be as high as you expect. We looked at average rates from Nevada's 10 largest insurers for several types of Las Vegas drivers. Almost always, we could find Las Vegas auto insurance rates that were cheaper than the Nevada average.

Shopping around is key. To get you started, here are the five cheapest options we found for Las Vegas drivers in a variety of situations.

Cheapest for good drivers in Las Vegas

For a Las Vegas driver with good credit and a clean driving history, the cheapest car insurance companies and their average rates for full coverage policies are:

Geico: $1,411 per year.
Safeco: $2,028 per year.
American Access: $2,109 per year.
Key Insurance: $2,523 per year.
State Farm: $2,657 per year.

Drivers with no recent accidents or violations can get cheaper car insurance rates for having good credit. For this calculation, NerdWallet averaged rates for 40-year-old men and women with a clean driving record and good credit. In terms of driving and credit history, a large portion of drivers are closest to this profile, which carries standard "full coverage" insurance, including comprehensive and collision, along with state-required coverage. Prices shown include a good driver discount, when available from the insurer.

Cheapest for minimum coverage in Las Vegas

For Las Vegas drivers who want bare-bones auto insurance, these are the cheapest companies and their average rates for minimum required coverage, assuming good credit and a clean driving record:

Geico: $711 per year.
Safeco: $1,154 per year.
Allstate: $1,255 per year.
State Farm: $1,319 per year.
American Access: $1,411 per year.

We calculated these numbers by averaging rates for 40-year-old good drivers (earning them a discount if the insurer offers one) who have only the minimum mandatory insurance in their state. Such light coverage isn't typically recommended, since it might not cover all the bills resulting from a car accident, but it's better than nothing — especially if you can't afford much more. If you're looking for the cheapest possible insurance you can get, though, you'll still want to get quotes from at least three auto insurers.

Cheapest for good drivers with poor credit

Las Vegas drivers with blemished credit and good driving records may want to get quotes from these insurers, which returned the cheapest average rates for full coverage:

Geico: $1,993 per year.
American Access: $2,109 per year.
Key Insurance: $2,523 per year.
Safeco: $4,117 per year.
Progressive: $4,795 per year.

If you have a spotty credit history, it's important to shop around to find the cheapest auto insurance rates you can. Poor credit can have a bigger effect on car insurance premiums than even a DUI conviction or a recent at-fault crash, but prices vary by insurer. To calculate these figures, NerdWallet averaged rates for 40-year-olds with a clean driving record and associated good driver discount, if the insurer offered one. They had poor credit as reported to their insurer, and standard "full coverage" car insurance.

Cheapest for drivers with one at-fault crash

For a driver in Las Vegas who recently caused an accident, here are the cheapest insurance companies and their average rates for full coverage:

Geico: $2,408 per year.
American Access: $2,899 per year.
Key Insurance: $2,961 per year.
State Farm: $3,367 per year.
Safeco: $3,443 per year.

After a relatively minor crash, some auto insurers will charge a lot more than others for coverage. To get these figures, we averaged rates for 40-year-olds with typical "full coverage" insurance and one recent at-fault crash costing $10,000 in property damage. Your rates will remain high for three to five years after you cause an accident or have a moving violation. If you fall into this category, be sure to shop for new insurance rates just after the three-year and five-year anniversaries of your infraction.

Cheapest insurance after a DUI in Las Vegas

When a Las Vegas driver has a recent DUI, these are the cheapest insurers, ranked by average rate for full coverage:

American Access: $2,531 per year.
Key Insurance: $2,699 per year.
Geico: $3,207 per year.
Safeco: $3,461 per year.
Allstate: $4,039 per year.

A conviction for driving under the influence, or DUI, generally results in higher auto insurance premiums than before. NerdWallet analyzed rates for 40-year-old drivers and standard "full coverage" car insurance with a recent DUI conviction to see which companies were cheapest. Rates can vary by hundreds between carriers after a DUI, and some penalize for longer than others, so it's important to shop around for the best price right after you see a price hike and each year after that.

Cheapest insurance after a ticket in Las Vegas

For Las Vegas drivers with a recent speeding ticket on their records, the cheapest auto insurers and their average rates for full coverage are:

Geico: $1,790 per year.
American Access: $2,301 per year.
Key Insurance: $2,523 per year.
Safeco: $2,686 per year.
State Farm: $3,089 per year.

Getting a speeding ticket will result in higher car insurance rates from most companies for three to five years. To see who has the cheapest rates, we calculated average car insurance rates for 40-year-old drivers with "full coverage" insurance and a recent ticket for speeding 16 mph over the limit. Though these larger companies were the cheapest we found on average, others may be cheaper for you, so be sure to get at least three quotes before deciding on a carrier.

Cheapest for couples and families in Las Vegas

The cheapest car insurance companies for single drivers aren't always cheapest for couples and families. That's why it's smart to get new auto insurance quotes after any major change in your life, such as getting married or adding a driver to your policy. We analyzed rates for a 50-year-old couple, with and without a teen driver, to see which insurers have the cheapest prices for families in Las Vegas.

Cheapest for a married couple in Las Vegas

For a Las Vegas husband and wife, both 50 years old with clean credit and driving records, these are the cheapest car insurance companies and their average rates for full coverage on two vehicles:

Geico: $2,168 per year.
Safeco: $2,683 per year.
American Access: $3,223 per year.
Allstate: $3,431 per year.
Progressive: $3,460 per year.

Couples who live together can save on auto insurance by combining policies, whether they are married or not, because they can earn multi-car and multi-driver discounts. Once they tie the knot, rates can dip further, but not because of discounts — insurers see married people as less risky and so charge them lower rates. Our hypothetical 50-year-old couple's clean driving record also earns them both a good driver discount.

Cheapest for families with a teen in Las Vegas

For a 50-year-old couple plus an 18-year-old driver, here are the cheapest insurers and average rates in Las Vegas for two vehicles with full coverage:

Geico: $3,635 per year.
Allstate: $5,710 per year.
Safeco: $5,867 per year.
State Farm: $6,772 per year.
Progressive: $7,549 per year.

Taking that same couple and adding a teen with two years' driving experience is sure to cause a big jump in rates. Since different insurers tend to see a teen's inexperience in different ways, we analyzed rates to see which companies had the cheapest car insurance for teens. These rates are averaged for 50-year-old couples with male and female 18-year-old drivers across the state.

Cheapest for young drivers in Las Vegas

Regardless of where they live, drivers in their 20s can face high car insurance rates because of their inexperience behind the wheel. But insurers consider factors like age and experience differently, so prices vary widely. We checked rates for 25-year-olds in Las Vegas to see which companies are cheapest for young drivers.

Cheapest full coverage for young good drivers

For 25-year-old Las Vegas drivers with good credit and no violations on their driving record, the cheapest insurance companies and average rates for full coverage are:

Geico: $1,468 per year.
Safeco: $2,245 per year.
American Access: $2,655 per year.
State Farm: $3,013 per year.
Key Insurance: $3,034 per year.

Drivers in their 20s can have a hard time finding cheap car insurance, and that's even truer when they need full coverage. The rates above are averages for 25-year-old male and female drivers with comprehensive and collision coverages, which are often required for drivers with active auto loans or leases. These rates reflect a good driver discount, but no others. Young drivers, like all drivers, should check several quotes to find the cheapest for the coverage levels they need.

Cheapest minimum coverage for young good drivers

For young drivers who want only the minimum required auto insurance in Nevada, these are the cheapest companies and average rates in Las Vegas:

Geico: $735 per year.
Allstate: $1,262 per year.
Safeco: $1,277 per year.
Progressive: $1,489 per year.
State Farm: $1,493 per year.

Since young people often have fewer assets to protect with liability insurance, they can usually get away with lower coverage limits. For an age group with relatively high insurance rates on average, that's good news, keeping rates as low as possible. For this price set, we averaged rates for 25-year-old male and female drivers who have clean driving records, good credit and bare-bones insurance coverage.

Poor credit and minimum coverage

Young drivers in Las Vegas with poor credit and a good driving record may want to consider these insurers, which showed the cheapest average rates for minimum coverage:

Geico: $1,041 per year.
American Access: $1,743 per year.
Key Insurance: $1,788 per year.
Allstate: $2,079 per year.
Progressive: $2,289 per year.

Poor credit is common for younger folks just starting out, who may still be building their credit files. That can increase rates further, so it's extra important to shop around and compare as many insurance quotes as possible to find the cheapest you can get. For these prices, we averaged rates for 25-year-old male and female drivers with no recent accidents or violations (earning them a good driver discount), minimum coverage car insurance, and credit in the "poor" tier as reported to an insurer.

Cheapest for minimum coverage after a crash

For 25-year-old drivers in Las Vegas with a recent at-fault accident on their record, the cheapest companies and average rates for minimum required insurance are:

Geico: $1,245 per year.
Allstate: $1,722 per year.
State Farm: $1,918 per year.
Safeco: $1,996 per year.
Key Insurance: $2,031 per year.

To get prices for this group, we averaged rates for 25-year-old male and female drivers with good credit and a recent at-fault crash costing $10,000 in property damage. Since car insurance is often pricier after a crash, and especially so for young drivers, we assumed minimum required insurance in the state to contain costs for our hypothetical driver. If you've caused a crash, no matter your age, be sure to check auto insurance quotes just after the third and fifth anniversaries of your incident, when insurers often adjust rates downward.

Cheapest for minimum coverage after a DUI

For a young Las Vegas driver with a recent DUI conviction, here are the cheapest insurance companies and their average rates for minimum coverage:

Geico: $1,645 per year.
Allstate: $1,669 per year.
Key Insurance: $1,884 per year.
Safeco: $1,996 per year.
American Access: $2,085 per year.

Young drivers with a recent DUI on their records will need to be diligent to find the lowest car insurance rates they can get — it's likely that many companies' rates will be quite expensive. But spending the time to shop around for quotes can help you find the lowest. For this analysis, we averaged rates for male and female 25-year-old drivers with a recent on-record DUI. They had good credit and minimum required car insurance, which helps keep rates down.

Cheapest for minimum coverage and a ticket

For a 25-year-old Las Vegas driver with a recent speeding ticket, these are the cheapest insurers and average rates for minimum required insurance:

Geico: $908 per year.
Allstate: $1,390 per year.
Safeco: $1,591 per year.
State Farm: $1,738 per year.
Key Insurance: $1,788 per year.

Getting a speeding ticket is never fun, and neither is the higher car insurance bill you may receive months later. At that point it's time to shop around for better rates, and it wouldn't hurt to repeat on your third and fifth ticket anniversaries, when insurers may adjust rates downward. We analyzed rates for 25-year-old male and female drivers with a recent speeding violation for going 16 mph over the speed limit to see prices for this group.

Cheap for military families

Cheap car insurance for drivers with a military connection is often available through USAA, which offers coverage exclusively for active service members, veterans and their families. Because USAA isn't available to everyone, NerdWallet didn't rank it in the lists above, but USAA was among the five cheapest options in Las Vegas for every driver category.

Recap: Cheapest car insurance in Las Vegas

Good drivers: Geico
Minimum coverage: Geico
Poor credit: Geico
After an at-fault crash: Geico
After a DUI: American Access
After a speeding ticket: Geico
Married couples: Geico
Families with a teen: Geico
Young good drivers: Geico
Minimum coverage for young good drivers: Geico
Minimum coverage for young drivers with poor credit: Geico
Minimum coverage for young drivers after a crash: Geico
Minimum coverage for young drivers after a DUI: Geico
Minimum coverage for young drivers after a ticket: Geico

» MORE: Best cheap car insurance in Nevada

Minimum required auto insurance in Las Vegas

Las Vegas car insurance policies must include liability insurance, which covers others' property damage and injuries if you're at fault in a crash.

The minimum auto insurance liability limits in Nevada are:

$25,000 bodily injury liability per person.
$50,000 bodily injury liability per incident.
$20,000 property damage liability per incident.

Even though this will be enough to drive legally, the bare minimum might not be enough to cover all damage. For example, causing an accident could easily leave you on the hook for more than $20,000 in property damage to another driver's car. You'd have to pay for any repairs that exceed your insurance limit.

Check out NerdWallet's guide to minimum car insurance requirements by state to learn more about coverage options for your policy in the Sagebrush State.

Alternative car insurance in Las Vegas

If you're denied auto insurance on the voluntary market due to DUIs, poor credit or other factors, you can seek coverage through the Nevada Automobile Insurance Plan.

For more help finding cheap car insurance in Las Vegas, try NerdWallet's car insurance quotes comparison tool.

METHODOLOGY

For our "good driver" profile, NerdWallet averaged rates from the largest insurers in the state for 40-year-old men and women in the Las Vegas-Henderson-Paradise, Nevada, Metropolitan Statistical Area as defined by the U.S. Office of Management and Budget. The MSA encompasses Clark County, Nevada.

The policy includes:

$100,000 bodily injury liability per person.
$300,000 bodily injury liability per accident.
$50,000 property damage liability per accident.
$100,000 uninsured motorist coverage per person.
$300,000 uninsured motorist coverage per accident.
Collision coverage with a $1,000 deductible.
Comprehensive coverage with a $1,000 deductible.

If required, minimum additional coverages were added. Our "young driver" had all the same characteristics, but average rates were for 25-year-old men and women. We used the same assumptions for all other driver profiles, with the following exceptions:

For drivers with minimum coverage, we adjusted the numbers above to reflect minimum required coverage by law in the state.
We changed the credit tier from "good" to "poor" as reported to the insurer to see rates for drivers with poor credit.
For drivers with one at-fault crash, we added a single at-fault crash costing $10,000 in property damage.
For drivers with a ticket, we added a single speeding violation for driving 16 mph over the speed limit.
For drivers with a DUI, we added a single drunken driving violation.

We used a 2016 Toyota Camry LE for all single drivers. Couples in our analyses were 50-year-old men and women with good credit and clean driving histories, averaged across the Las Vegas MSA with the same policy outlined above. To see rates for families with a teen, we added an 18-year-old licensed two years ago, averaging rates for male and female teens. For couples and families we added a 2016 Nissan Rogue S to create a two-car household. Rates for each vehicle assumed 12,000 annual miles driven.

These are rates provided by Quadrant Information Services. Your own rates will be different.

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