Trump's Trade Policies May Cause Car Insurance to Rise

A potential rise in car insurance rates in 2025 is being attributed to trade policies implemented during the Trump administration. The tariffs imposed on imported auto parts are driving up the cost of vehicle repairs. When parts become more expensive, repair shops have to charge more for their services. This, in turn, impacts insurance companies, who then raise premiums to cover the increased costs of claims.

Industry analysts suggest that the tariffs on steel and aluminum, key components in car manufacturing, are a significant factor. These tariffs make it more expensive for manufacturers to produce vehicles and replacement parts. The increased costs are ultimately borne by consumers, both in the price of new cars and in the cost of repairing existing ones.

While the long-term effects of these trade policies are still being assessed, the immediate impact on drivers could be higher car insurance bills. Consumers are advised to shop around for the best insurance rates and to consider increasing their deductibles to potentially lower their premiums.