See How Much Auto Tariffs Could Raise Your Car Insurance Rates
President Donald Trump's 25% auto tariff on imported cars and parts made some companies raise prices. See how this impacts the cost of your car insurance.

Car insurance prices are already high. It appears, they're about to surge higher.
This is due in part to rising vehicle prices. President Donald Trump implemented a 25% tariff on all imported cars and car parts and some car manufacturers are starting to show signs of how this will impact them.
Recently, Ford announced these tariffs could cost the manufacturer up to $1.5 billion in losses this year. Ford rose the prices of three of their models produced in Mexico by $2,000 apiece.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
And more car manufacturers could be following suit.
How does Trump's tariffs impact car insurance?
When tariffs go into effect, it makes imported goods, like cars, more expensive. In turn, companies pass some of the extra costs to customers.
As costs for cars increase, insurance rates follow suit. If a vehicle costs more to make, then it's natural that replacement or repair costs will also be more expensive. Especially when you factor in we receive many car parts from other countries.
"Looking ahead, the newly announced tariffs on imported vehicles add another layer of difficulty for shoppers already facing high prices and interest rates,” said Ivan Drury, Edmunds’ director of insights.
"Now, tariffs will either be pushing up prices, or in the case of brands that are trying to absorb the cost of the tariffs temporarily, like BMW, consumers are likely to feel even more pressure to buy quickly," adds Jim Patterson, managing editor of The Kiplinger Letter. "So we'll see some combination of higher prices and more urgency to buy."
Car insurance prices raise by 8% in 2025
Insurify looked into how a 25% auto tariff would influence car insurance costs. They found that if implemented, it would raise full policy car insurance prices by at least 8% by the end of 2025.
Now, to be fair, car insurance prices were increasing anyway. Insurify reported even without tariffs, premiums will rise by 5% on average.
So, what's driving the extra 3%? It's the extra costs the tariffs add to cars.
The Anderson Economic Group forecasts that vehicle prices could increase from $2,000 for less-impacted models (vehicles with more assembly and parts produced in the U.S.), all the way up to $12,000 for the most-impacted models, where most parts and assembly come from other countries.
How do I save when car insurance keeps rising?
One of the best ways to save on car insurance is to reshop it. Even after you had a policy with the same provider for a few years, it makes sense to take a fresh look at other providers to see if you're overpaying.
Using this tool from Bankrate, you can shop for a new policy quickly:
Also, if you plan to buy a new vehicle before tariffs go into effect, it's a wise idea to obtain an insurance quote before doing so. Getting quotes can help you see how a new vehicle influences your car insurance premiums.
Another tip is to shop around right before your policy renews. This allows you enough time to compare quotes from multiple providers, so you can find the best coverage options that align with your budget and coverage needs.
The bottom line
Auto manufacturers are feeling the effects of tariffs. As prices rise, your car insurance rates could as well.
By being proactive and shopping for rates before policy renewals or buying a new vehicle, you can find the right coverage options to match your budget, while minimizing overpaying.
Related content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Sean is a veteran personal finance writer, with over 10 years of experience. He's written finance guides on insurance, savings, travel and more for CNET, Bankrate and GOBankingRates.
-
Baby Boomers vs Gen X: Who Spends More?
Baby Boomers and Gen X are guilty of spending a lot of money. Here's a look at where their money goes.
-
Retire in Finland and Live the Nordic Dream
Here's how to retire in Finland as a US retiree. It's ideal for those who value natural beauty, low crime and good healthcare.
-
Baby Boomers vs Gen X: Who Spends More?
Baby Boomers and Gen X are guilty of spending a lot of money. Here's a look at where their money goes.
-
A Financial Expert's Tips for Lending Money to Family and Friends
What starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
The 401(k) Mistake That Could Cost You Millions in Retirement Savings
Thinking about reducing your 401(K) contributions in the current market? Here are six reasons why you may want to reconsider.
-
I'm an Insurance Expert: Yes, You Need Life Insurance Even if the Kids Are Grown and the House Is Paid Off
Life insurance isn't about you. It's about providing for loved ones and covering expenses after you're gone. Here are five key reasons to have it.
-
7 Rules Frequent Flyers Swear By
From dodging long lines to avoiding bad coffee, these clever travel rules can help you save time, stay healthy and reduce stress every time you fly.
-
My Professional Advice: When It Comes to Money, You Do You
This is how embracing the 'letting others be' and 'learning to surrender' mindsets can improve your relationship with money.
-
Five Smart Moves for Retirement Healthcare: From HSAs to Medigap Policies
Unchecked health care costs in retirement could blow a hole in your savings. Here’s how to avoid that.
-
The High Price of Skipping Workers' Comp Insurance
Two labor and employment attorneys highlight the penalties (fines, reputation damage and even jail time) that small businesses risk if they opt not to carry workers' comp insurance.