Sticker Shock: Vehicle Insurance Rate Are Going Up

Drivers across the U.S. are feeling the sting of rising car insurance premiums—and President Trump’s tariffs may be to blame.

While the administration recently reduced tariffs on auto parts from Japan, South Korea, and the EU from 25% to 15%, insurers are still grappling with the lasting financial impact.

The crux of the issue? Tariffs raise the price of imported vehicles and parts, driving up the cost of repairs and replacements. As a result, insurers face higher claim payouts—costs they’re passing on to consumers. Full-coverage premiums could climb 7% by the end of the year, with steeper hikes likely in 2026.

Some states will be hit harder than others. In places like Florida, New York, and Michigan, rates could surge over 12%, with average premiums nearing $4,000.

The American Property Casualty Insurance Association estimates that tariffs could add $7 billion to $24 billion in claim costs industry-wide. As insurers adjust, drivers are left footing the bill.

With vehicle prices already elevated, insurance is now the latest burden for car owners navigating Trump-era trade fallout.

Join our movement by visiting https://norwinareademocrats.org and don’t forget to subscribe https://newresistance.substack.com