US EditionCar insurance costs could rise 7% by year’s end amid tariffs: Analysis
UNITED STATES, AUG 7 – Car insurance premiums may rise up to 7 percent in 2025 due to tariffs on imported auto parts, with the average annual cost potentially reaching $2,502, Insurify data shows.
- Experts warn that car insurance prices could rise once more following Tuesday’s tariff discussions between Gov. Gretchen Whitmer and President Trump.
- The surge follows economic policies by the Trump administration and tariff impacts harming Michigan's auto industry, which accounts for 9.2% of the state's GDP.
- Insurify data shows Michigan's average insurance cost rose 14% to $3,131 annually in June, driven by rising repair costs, extreme weather, and tariffs nationwide.
- Insurify projects Michigan drivers may pay about $150 more annually by the end of 2025 if tariffs continue, though some insurers plan to lower premiums despite these costs.
- This trend suggests insurance rates could increase up to 7% nationally by year’s end, while affected states like Michigan may face steeper rises if tariff costs persist.
14 Articles
14 Articles
Car insurance costs could rise 7 percent by year's end amid tariffs: Analysis
Car insurance premiums have skyrocketed in recent years, and President Trump's tariffs could drive them even higher. The cost of full-coverage car insurance could jump 7% to an average of $2,472 a year by the end of 2025 if prolonged tariffs lead to significant insurer losses, according to a new Insurify analysis. Even without tariffs, drivers can expect a 4% rate increase in the second half of the year, the insurance comparison site projected i…
Car insurance costs could rise 7% by year's end amid tariffs: Analysis
(NewsNation) — Car insurance premiums have skyrocketed in recent years, and President Donald Trump's tariffs could drive them even higher. The cost of full-coverage car insurance could jump 7% to an average of $2,472 a year by the end of 2025 if prolonged tariffs lead to significant insurer losses, according to a new Insurify analysis. Even without tariffs, drivers can expect a 4% rate increase in the second half of the year, the insurance compa…
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