A new wave of tariffs, including those targeting vehicles and car parts, is causing Americans to reassess their plans for buying a car or maintaining existing ones. President Trump’s proposal to temporarily pause the 25% tax on imported cars may provide some relief, but the impact on auto insurance rates remains uncertain.
Tariffs are pushing up prices for car parts, making repairs more expensive. This will, in turn, increase the cost of auto insurance as insurers pass on these costs to customers. Even if you’re not planning to buy a new car, higher repair costs mean your existing vehicle’s maintenance and repair expenses will rise.
According to experts, insurance rates are already high for many drivers, averaging over $2,600 annually for full coverage. Any changes in the tariffs or their implementation could further drive up insurance premiums.
While some uncertainty surrounds how much auto insurance rates will increase, having a trusted mechanic, shopping around for quotes, and maintaining a good driving record can help mitigate this impact.
Source: https://www.npr.org/2025/04/18/nx-s1-5369346/tariffs-auto-insurance-rate-hikes