As import tariffs imposed by President Trump continue to affect the economy, American consumers are bracing for an increase in the cost of goods, including car insurance.
Experts predict that the impact from these tariffs will lead to a rise in full coverage car insurance premiums, with the projected increase hitting approximately 8% by the end of 2025.
Gabby Olivas, a consumer looking to save money, noted the financial strain that rising costs have placed on her.
“Right now, I’m paying close to $200 a month,” she said. “With my current insurance, I thought it was really high; I went window shopping for others and I realized that’s the norm right now, so that’s crazy and I’m going to have to make it work.”
Research from Insurify, an online insurance marketplace, highlights that the projected increase in car insurance rates stems from the tariffs’ effects on car and individual car part prices.
Janet Ruiz from the Insurance Information Institute explained, “Auto rates would not change until the customer’s insurance policy is up for renewal. No premium charge will be implemented on existing policies.”
Olivas expressed hope that any increase in her premiums would be minimal, acknowledging the necessity of having a vehicle despite the challenges ahead.
“I mean, I can walk, but do I want to spend three hours getting from one place to another?” she remarked.
As consumers like Olivas implement creative money-saving techniques -- such as clothing trades and alternative exercise options -- many are left wondering how much more they will need to allocate for essential services like car insurance amidst ongoing economic changes.
This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
