The increase in the cost of automotive parts would make repairs more expensive, which would cause greater bonuses, according to the insure
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by Chris Chilton
February 26, 2025 at 12:32
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- Automobile insurance premiums can increase unexpectedly under President Trump.
- Import prices could make parts, and therefore more expensive repairs.
- The premiums could jump 3% by the end of 2025, said Insurify.
If you thought that car insurance already put a bump in your wallet, 2025 could bring additional pain at the time of renewal. Insurance premiums could increase if President Donald Trump follows his prices offered on goods from Canada and Mexico, which could come into force in a few weeks.
Related: guess how much it costs to repair this rivian r1t
What do import taxes do with your insurance bill? It turns out that many. These prices could increase the cost of automotive parts, which would make repairs to more expensive vehicles, according to the insurance comparison site insurance. And when repairs become more expensive, insurance companies do not only eat the cost. They transmit it to drivers like you and me.
How the prices affect cars repairs
Many parts used in vehicle repairs – think that bumpers, wings, transmissions and even these small pieces that you never see but which must be replaced when you destroy a car – come from Canada and Mexico.
About six out of 10 automotive parts used in American repairs are imported from Mexico, Canada and China, according to data from the American Property Casualty Insurance Association cited by CNBC, certain components crossing the border several times before being installed in a car. If the prices come into force, these parts will cost more about import.
And guess who else should pay more? Repair workshops. When they charge insurers more to repair a shipwrecked car, these costs decrease to customers in the form of higher bonuses. Thus, a bend of wings that could have been a minor drawback in 2024 could become a financial headache in 2025.
How more will you pay?
The good news is that although bonuses can increase, we are not talking about their doubling. Insurance indicates that premiums could fall from 8% to an average of $ 2,502 by the end of 2025 with the prices in place, against an increase of 5% to $ 2,435 without the prices.
What Tariffs planned exactly, when they come into force and what articles they will affect not to be clear. He previously threatened by 25% of the goods from Canada and Mexico, saying that she was going to hinder on February 1, but then pushed back on March 4. Now prices are scheduled for April 2.
So, even if it is not time to panic, it could be intelligent to prepare for a slightly higher insurance bill. If the prices pass, this little ding in your bumper could have a higher price than expected.
