Car insurance rates are up 5.3% from a year ago, according to the most recent federal inflation data. Premiums could rise even more as tariffs continue to impact the auto industry.

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

Global Tariffs

Car insurance rates in the United States have risen by 5.3% over the past year, with the average monthly premium now at $213. Industry forecasts suggest that tariffs on auto parts could push rates even higher, with a potential 7% increase by the end of the year if tariffs persist, compared to a 4% rise without them.

The cost of car parts and equipment has already increased, reflecting the impact of tariffs on consumers. Experts recommend that drivers shop around for insurance, check for available discounts, and consider bundling policies to help offset rising costs.

Tariffs could drive up car insurance costs as rates climb nationwide

Gabby Olivas found out what many Americans are learning these days when it comes to car insurance. It's expensive. I thought that it was really high so I went window shopping for others and then I realized that that was actually just like the norm right now. So yeah. Car insurance rates are up 5.3 percent from a year ago according to the latest federal inflation data. That clocks in at $213 per month on average according to NerdWallet. And premiums could get more expensive because of tariffs impacting the auto industry. The national average for full coverage car insurance is forecast to increase 7% by the end of the year if tariffs stay in effect. That's opposed to a 4% price increase without tariffs according to Insurify. What car insurance does is essentially cover your you know the cost of your car, the cost of repairs, the cost of potentially replacing your car in the event of an accident. And so if the cost of repairing your car due to more expensive car parts that have these foreign tariffs on them goes up, then insurance does have to ultimately rise to meet those increasing costs as well. The price of car parts and equipment was up nearly a full percent in July, a likely sign of tariffs hitting consumers. I mean we got filters, we got wiper blades, we've got some brake parts, definitely tires. A lot of things that we use on a daily basis are from out of the country. As tariffs impacting the auto industry potentially lead to pricier car insurance, there are ways to save according to personal finance expert Melissa Lambarena. One of the best ways to save money on car insurance is making sure that you are shopping around and comparing rates every single year to get the best deal. She also recommends checking with your provider about any discounts you might qualify for and research if bundling your auto insurance with your home or renter's insurance will save you money.

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Tel Aviv-Yafo

Middle East Conflict

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Council of the City of Sydney

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Washington

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Baltimore

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Ukraine Invasion

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Los Angeles

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Tariffs could drive up car insurance costs as rates climb nationwide

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Global Tariffs