Will Tariffs Impact Car Insurance Rates?

Auto insurance rates may increase because of tariffs. Andrey_Popov/Shutterstock

You can’t watch a newscast without someone talking about tariffs. There are some reported concerns that the price of goods will increase. Products that are at the forefront of tariffs are automobile parts.

With the possibility of prices on some auto parts increasing, the cost of one service everyone needs may also increase. Auto insurance rates may increase because of tariffs. But is this true, and if so, how much will rates increase?

How Tariffs Could Impact Car Insurance

Even under normal circumstances, an increase in an auto’s cost affects car insurance rates. A $50,000 car is going to cost more to insure than a $20,000 car. In other words, vehicles that cost more will have higher repair costs and, therefore, require higher insurance rates.