Summarize and humanize this content to 2000 words in 6 paragraphs in English Your car insurance rates will likely go up if President Trump’s tariffs on fully assembled foreign vehicles and auto parts stay in effect. President Trump’s 25% tariff on fully assembled cars was implemented on April 3, while tariffs on some 150 categories of auto parts made outside the U.S. are set to kick in on May 3. While President Trump recently enacted a 90-day pause on many reciprocal tariffs, the 25% tariffs on foreign vehicles and auto parts remain. This embedded content is not available in your region. Learn more: 6 steps to find cheap car insurance in 2025 Any automotive tariffs will likely trigger a domino effect that could lead to higher car insurance prices. As new vehicle and auto parts prices go up to cover the cost of tariffs, prices for repairing or replacing a car after an accident, other damage or vehicle theft will rise. Insurers will pay out more for auto insurance claims and then will likely seek higher car insurance rates to compensate for their higher costs. “Auto insurance premiums are a reflection of the cost to pay claims,” Stephen J. Crewdson, senior director in the Global Insurance Intelligence Group at J.D. Power, a global data and analytics company, said via email. “As these claims costs go up or down, premiums will eventually follow.” Car insurance customers could feel the sting of tariffs on a number of fronts. The types of car insurance that pay for vehicle repairs could see rates rise if higher claims are being paid out. This includes liability insurance, collision insurance, and comprehensive insurance. Learn more: Most common types of car insurance explained About six of every 10 auto replacement parts used in U.S. auto shop repairs are imported from Mexico, Canada, and China, according to Jon Ward, vice president of public affairs with the American Property Casualty Insurance Association (APCIA). As repair costs increase, damaged vehicles are more likely to be totaled. This will spark more payouts for the actual cash value of vehicles rather than for repair costs. This, in turn, will force more drivers to shop for new cars to replace their totaled vehicles at a time when new car prices may also be affected by tariffs. In addition, car repairs could take longer if the fallout from tariffs disrupts supply chains and makes it more difficult to get parts. Longer repair times would increase the cost of rental reimbursement claims and potentially lead to higher premiums for that coverage. Rental reimbursement insurance is an optional coverage that helps pay for a rental car while your car is getting fixed for a covered claim. Consumers with rental reimbursement coverage could end up paying more out of pocket for a rental car if the repair delay exceeds the coverage limit, which is typically 30 days, said Colleen Parsons, an independent insurance agent with World Insurance Associates in the Rochester, New York, area. “This reminds me of what we went through during the pandemic when parts weren’t easily available, and there were a lot of delays.” Consumers may see an impact on their car insurance bill in 12 to 18 months, according to the APCIA. “There is a lag in changing premiums as insurers usually want months of data to analyze before adjusting rates,” Crewdson said. “Some states require prior approval, which takes time, and auto policies are six-month policies, so some customers won’t see the premium changes for months after they happen.” It’s hard to say how much your car insurance rate will rise. Parsons said premium increases will vary depending on the type of vehicle you own and the parts needed to repair it. Meanwhile, don’t expect the automotive industry to shift production to the U.S. overnight to escape tariffs. “Moving an auto supply chain takes at least two years and billions of dollars, making quick shifts in production nearly impossible,” Liz Hempel, a partner at McKinsey & Co., a global management consulting firm, said via email. “With seven-year model cycles and specialized infrastructure concentrated in key regions, the automotive industry faces unique hurdles. Beyond factory relocations, moving decades of expertise is another major challenge.” Learn more: Car insurance rates are climbing. Here are 4 reasons why and 11 ways to save. You can’t control tariffs. But you can take steps to manage your car insurance rates and keep them as low as possible. Here are some tips. Maintain the coverage you need Resist the temptation to cut necessary coverage in order to save money. For instance, don’t lower liability limits below the value of your net worth, which would put your assets at risk if you cause an expensive car accident. You could save a little money on your insurance bill but lose a bundle if you were sued and didn’t have enough coverage. “It’s too big of a risk to gamble,” Parsons said. Read more: How much car insurance do I need? The higher the deductible is, the lower your car insurance premium for collision insurance and comprehensive insurance. Set your deductible to the highest amount you can afford to pay out of pocket in the event you have a claim, and then stash that amount in savings so it’s available. Check with your insurance agent to make sure you’re getting all the discounts you deserve. While many discounts are applied automatically, like vehicle safety discounts, your agent may be able to find others you can use. For example, there are often small discounts for going paperless or using EFT payments. And some insurers offer discounts for taking a defensive driving course. Learn more: Car insurance discounts: 17 ways to save Do an annual car insurance checkup and compare quotes Check your coverage to see if it’s still in line with your needs. Perhaps your car’s value has dropped to the point that you can drop collision insurance. Compare quotes from companies to make sure you’re getting the best deal. You can do that yourself or work with an independent insurance agent. An independent agent represents multiple insurers and can do the rate shopping for you from multiple companies. Car insurance banner · Yahoo Personal Finance
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