How tariffs are fueling car insurance hikes across nearly every state

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https://www.insurancebusinessmag.com/us/news/auto-motor/how-tariffs-are-fueling-car-insurance-hikes-across-nearly-every-state-545392.aspx

How tariffs are fueling car insurance hikes across nearly every state
Rising repair expenses and supply chain disruptions could also accelerate pricing pressure
By Kenneth Araullo
Aug 07, 2025

Car insurance premiums in the United States are projected to rise through the end of 2025, with new tariffs on imported auto parts potentially adding further pressure on insurers and policyholders.

According to an analysis from Insurify, full-coverage car insurance could increase by 7% to an average of $2,472 per year by December 2025 if recently imposed tariffs lead to significant underwriting losses.

Even without tariff-driven effects, Insurify projects a 4% rate increase in the second half of the year.

The expected rise follows a relatively stable first half of 2025, during which rates remained flat across the country and declined in 27 states. That trend has since reversed amid inflation and growing uncertainty around trade policy.

Insurify attributes the upward pressure on premiums in part to new tariffs on automotive imports.

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