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.
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.
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And more car manufacturers could be following suit soon.
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. And that leads to another question: How much will these tariffs increase car costs?
The staff of the Kiplinger Letter crunched some numbers to determine the impact of the 25% auto tariffs. They found it could increase foreign car costs by $5,000 to $10,000 and domestic cars could raise by $3,000 on average.
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.
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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.
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