Car insurance rates in the United States could rise by 4 to 7 percent this year, with tariffs potentially playing a role, online platform Insurify said in an Aug. 5 report.
Although rates were steady nationally and decreased in 27 states during the first half of 2025, tariffs and inflation could derail that trend, the company said.
“Some insurers may have already accounted for tariffs when setting rates, while others may have to raise rates if tariffs increase the cost of claims,” the report stated.
Prices of car components may also be impacted by import tariffs.
“Insurify projects the national average cost of full-coverage car insurance will increase 4 percent by year’s end ($2,402), and up to 7 percent if prolonged tariffs lead to significant insurer losses ($2,472),” the report states….