Trump’s Tariffs May Soon Make Car Insurance More Expensive
We expect certain actions will have certain effects: For example, when President Donald Trump imposes double-digit tariffs on imports from nearly every country in the world, we shouldn’t be surprised that prices would go up on material goods. But a new report suggests we may see price hikes in non-material goods, too.
“Initially, car insurance companies looked at 2025 as a year to keep insurance rates stable, or even cut them, after years of premium increases,” according to a new report from the insurance comparison site Insurify. “Tariffs and inflation could derail that trend. Some insurers may have already accounted for tariffs when setting rates, while others may have to raise rates if tariffs increase the cost of claims.”
At first, this may be a surprise. After all, what do tariffs have to do with an intangible good like insurance?
“The U.S. has imposed several rounds of tariffs that raise the cost of auto parts, thus increasing the cost of repair claims for insurers,” the report explains. “Inflation, which was falling early in the year, has ticked up since April.”
In March, Trump signed an order imposing 25 percent tariffs on “imports of automobiles and certain automobile parts.” According to the order, he did this “to protect America’s automobile indus
Article from Reason.com
The Reason Magazine website is a go-to destination for libertarians seeking cogent analysis, investigative reporting, and thought-provoking commentary. Championing the principles of individual freedom, limited government, and free markets, the site offers a diverse range of articles, videos, and podcasts that challenge conventional wisdom and advocate for libertarian solutions. Whether you’re interested in politics, culture, or technology, Reason provides a unique lens that prioritizes liberty and rational discourse. It’s an essential resource for those who value critical thinking and nuanced debate in the pursuit of a freer society.
