Add this to concerns about the probable impact of rates: most expensive car insurance.
The new tariffs on cars, metals and imported parts announced by the Trump administration are expected to increase vehicle prices in thousands of dollars if they remain in place. And because the parts used in car repairs will also be more expensive, the average cost of car insurance is expected to increase.
The average annual premium for an automatic complete coverage policy was just over $ 2,300 at the end of last year, according to an Insurify analysis, an insurance comparison purchasing website. Initially, the site estimated that premiums would increase only 5 percent this year, according to factors such as inflation and losses of insurers.
How much of impact could the tariffs on car insurance costs have?
With the addition of rates, Insurify now projects that the premiums increase at least 16 percent, or $ 378, almost 2,700 on average nationwide, approximately $ 256 more than without tariffs. The analysis includes tariffs on steel and aluminum, those of imported cars and those of imported cars programmed to enter into force on May 3. (The tariffs announced in February on products from Mexico and Canada adjusted to some products, including cars and automotive parts, which comply with the Trump free trade agreement negotiated in its first term, according to the information. The analysis found).
An Insurify spokeswoman said the Trump administration announcement on Wednesday, leaving two -digit global tariffs for 90 days, did not change the company’s projections. The Treasury Secretary, Scott Besent, in response to the question of a journalist after the announcement, indicated that the pause did not apply to certain rates such as those of cars.
“The things that increase the cost of repairs impact prices,” said Robert Passmore, vice president of personal lines of the American Association of Property Insurance, whose members are large insurance companies. About 60 percent of the pieces used in the repairs of car stores are imported from Mexico, Canada and China, according to the association.
The price of car insurance has shot in recent years for a variety of reasons, including more claims resulting from the management habits that deteriorated during the pandemic, the use of more expensive technology in cars and damages for storms and strong hail. Although the increases had begun to moderate recently, the cost of motorized vehicle insurance still increased 7.5 percent in March compared to a previous year, according to the Office of Labor Statistics.
When will the increases affect driver’s policies?
Consumers will not see the impact on their rates immediately, said Matt Brannon, a data reporter in Insurify. Rather, the highest premiums will probably arrive by the end of the year, depending on when their policy is renewed.
Michael Delong, associate of research and defense of the campaign of the Federation of Consumers of America for the Insurance of Auto Justo, said that the states regulate car insurance and that insurers must gather several months of claims data, instead of blaming tariffs in general, to show that their higher rates requests are justified. “They have to justify it,” said Delong.
Can I do anything to help maintain my bass car?
There is no magical solution to relieve the impact of tariffs, said Jon Linkov, attached Consumer Reports cars. But since the anticipated impact is months away, it is now a good time to review your policy to make sure you do not have coverage beyond what you need or make other changes that help reduce the increases in factors beyond tariffs.
“If your new cousin is usually just a rubber stamp,” Linkov said, “communicate with your insurer.” Ask what changes the insurer recommends to save money.
If your car is old and low value, you may save by releasing optional protections such as collision, which covers your car after an accident, or “integral” coverage, which covers theft and damage of things such as trees, hail or flood fall. A general rule suggested by the Insurance Information Institute, an industry group, is that it must consider launching an optional coverage if the car is worth the annual insurance premium less than 10 times. (The coverage of responsibility, which pays the injuries to others or requires damage to the property that causes to drive, in almost all states, although the minimum coverage amounts vary).
You can also consider raising your deductible, an amount you must pay from your pocket when you file a claim. If you have a deductible $ 500, you could reduce your premium to up to 25 percent by increasing the deductible to $ 1,000, said Mr. Linkov. But be sure to cover that amount, if you need to file a claim.
“Do you have the cash available?” said. “Be sure to leave the savings aside, so you have it if you need it.”
If you have young adults in your policy, check if it would be less expensive for you to obtain your own coverage. “It may be time to start them,” Linkov said.
You can pay to buy, experts said. You can use several online markets, but use a backup email to receive appointments to avoid being flooded with insurers. Have your current automatic policy in front of you when you buy to make sure you get apples to apples to apples for the same coverage, said Passmore. (And before making their hopes, read about the failed experience of my colleagues in the purchase of cheaper rates).
Should I try a system that monitors my driving?
You can save money allowing an insurer to install a device in your car that monitors your driving behavior or track your driving on your phone, said Passmore. 10 percent discounts are common just to register. The systems generally collect information as how far it leads, what time of day conducts, braking and acceleration, and telephone use.
Mr. Passmore said he used one and discovered that he had made him a better driver: “I was surprised how much hard it was doing.”
But both consumer reports and the consumer federation have concerns about such systems because they lack privacy protections. There is little regulation, so far, what exactly the insurers can do with the data they collect, Linkov said.
However, if you are driving less, perhaps because it has moved and has a shorter trip or is working at home, communicate with your insurer with the new total of mileage and request that your policy be classified again, said Mr. Linkov. Less promoted miles means a lower risk of accidents, which should be translated into lower rates.
Becoming a safer driver can also help him avoid accidents and speed tickets. Therefore, taking a “defensive driving” course can save money. “The driver’s history remains the most important part of how its rate is established,” said Brannon.
Insurers can offer discounts for having cousins ​​taken directly from their bank account or for students who maintain good grades. So ask for them too.
Can I save money on repairs?
If you always receive the dealership service where you bought your car, it can be worth verifying if an independent repair workshop could save money, Linkov said. Request references and begin with a basic service such as a change of oil or tire rotation. If the store does not convert routine maintenance into a difficult sale for a more expensive job, consider taking your business there.
If you ever have to submit an insurance claim, she said, a well -informed mechanic can advise you on topics as if it is acceptable to use “post -sales” cheaper “after -sales for certain repairs or if you must push your insurer to cover pieces of the original manufacturer, which is often preferable.
