:max_bytes(150000):strip_icc()/GettyImages-522979488-0b98887b88244e208975d73721bf4840.jpg?w=1920&resize=1920,1305&ssl=1 "Trump’s Tariffs Could Make Your Car Insurance More Expensive")
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key takeaways
- Car insurance prices have doubled since the Kovid-related supply chain disruption. Although the price growth has recently slowed down, they are expected to grow rapidly due to tariffs.
- President Donald Trump’s cars and car parts can increase the cost of repairing and purchasing 25% tariffs on cars and car parts, forcing insurers to increase prices for coverage.
- Between a growing trade war between the US and China, there can also be tariff car prices on car parts such as semiconductors, windshield wipers and turn signals.
American drivers can see an increase in their auto insurance prices on their next renewal as President Donald Trump’s recent tariffs will probably be more expensive to buy and repair cars.
Over the last five years, auto insurance prices have exceeded double because the covid-related supply chain interruptions have made the car repair more expensive. However, according to the latest CPI data, the increase in car insurance price has slowed down from the beginning of the year and even decreased in March.
Nevertheless, the insurance value can re -raise the increase in the form of 25% tariff on all foreign cars and parts of Trump. Experts stated that import tax would increase the cost of purchasing and repairing thousands of dollars of cars, and this can make insurance coverage more expensive.
“In the last one year, many carriers have reduced underwriting sanctions or have launched a more flexible payment scheme to run a new business,” Josh Damico said in a statement, vice -president of insurance operating in car insurance comparative app, Jerry. “But with tariffs potentially, with increasing the cost of claims and increasing the pressure of profitability, some insurers can pull back to these strategies and take a more cautious stance for the remaining of the year.”
According to an insurance comparison company, an insurance comparison company Insurifey, tariffs on cars and others, such as steel and aluminum, will increase the cost of car repairing and fare, an average annual full-covered car insurance price will increase by about $ $ 2,759 by the end of 2025. Insurify estimates will increase the prices of coverage by 19% in 2025, 14 percent more points without Trump’s tariff.
“The consensus is that the recent tariffs will increase the price of auto parts and will cause the insurers to spend more money on repair claims,” said Malori Muni, director of sales and service in INSURIFY in a press release. “With an increase in this cost, we expect the insurers to have no other option but to pass these damage to drivers as high premiums.”
In addition, as part of a growing trade war between the United States and China, Trump increased the total tariffs against Chinese goods by 145%.
In 2024, China exported vehicles worth $ 16.40 billion and $ 11.94 billion iron or steel, according to the US International Trade Commission. Additionally, China was one of the top exporters of other items used to make and repair vehicles, such as semiconductors, windshield wipers and bend signals.
Demico said in an email, “The degree of influence will depend on how individual manufacturers and repair shops trust goods received from China.” “Vehicles contacting more parts may see the most pressure.”
Insurance for JD Power, Managing Director of Global Business Intelligence, Managing Director for JD Power, said in an email that it may take a few months to reflect these cost changes in insurance policies, as most policies are renewed every six months.
