Here's why Trump tariffs may raise your car insurance premiums

Main Idea: President Donald Trump’s tariff plans could raise car insurance premiums by making auto parts and repairs more expensive.

Key Points:

• A new analysis says a 25% tariff on imports from Canada and Mexico could push average full-coverage car insurance costs up to $2,502 a year by the end of 2025.
• Without those tariffs, average premiums are still expected to rise, but by less, to about $2,435 a year.
• The tariffs could raise the cost of imported cars and parts, which would increase repair claims and lead insurers to charge more.
• Auto insurance prices are already climbing, with premiums up 12% over the past year and broader inflation adding pressure.