Here's why Trump tariffs may raise your car insurance premiums
The Trump administration’s tariff policies may raise auto insurance premiums for motorists, according to a new Insurify analysis.
The Trump administration’s tariff policies may raise auto insurance premiums for motorists, according to a new Insurify analysis. This at a time when drivers continue to see costs soar amid pandemic-era inflation.
A 25% tariff on imports from Canada and Mexico — which may take effect as soon as March — would increase annual full-coverage car insurance premiums by 8% to $2,502, on average, by the end of 2025, according to Insurify.
It estimates average annual premiums would rise 5% by year-end, to $2,435, without tariffs on Canada and Mexico.
Tariffs are expected to make cars and auto parts imported from Canada and Mexico — which are major suppliers for the U.S. market — more expensive. As a result, insurers pay out more money in claims when policyholders get into car accidents, and they pass on that financial risk to consumers via higher premiums.
“When people think about tariffs, they typically think about goods they might get from somewhere else,” said Matt Brannon, a data journalist at Insurify who authored the analysis. “Many times, we don’t think about services like car insurance.”
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