Tariffs are driving up the cost of groceries, alcohol, and gas, and now they could impact how much you pay for car insurance. NBC10 Responds reporter Tracy Davidson explains why and the steps you can take to save.
New tariffs are driving up the cost of groceries, alcohol, and gas, and now they could impact how much you pay for car insurance.
President Donald Trump is granting a one-month exemption on his stiff new tariffs on imports from Mexico and Canada for U.S. automakers. It comes amid fears that the trade war could harm American manufacturers.
Those new tariffs are predicted to drive up the price of your car insurance. Premiums are already up by almost 12% over the last year, according to federal data.
Now, analysts with an "insurance price comparison website" are looking into how much the new tariffs could cost you.
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The average full coverage premium in 2024 was $2,313. Insurify -- a digital insurance agent -- expects that cost to increase to $2,435 by the end of 2025, about a $120 increase. Then, tack on another $67 related to tariffs.
How could you save on the cost of your insurance?
It's never a bad idea to compare prices and see if you save money by switching insurers.
You could also take on a higher deductible. You could have lower monthly premiums, but the tradeoff is if you get into an accident, you'd pay more upfront cost.
Also, you can check to see if your insurance company has a safe driving incentive program for discounts or home and auto bundle deals.
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