How auto parts tariffs could raise car insurance premiums in 2025

Car insurance costs are already climbing, and newly proposed tariffs on imported auto parts could push rates even higher.

It’s a straight line: The U.S. has imposed a 25% tariff on assembled vehicles and a 25% tariff on certain auto parts . Mitchell analysts expect these parts tariffs to lift collision repair costs, especially for electronics and ADAS components, which in turn can pressure premiums.

CheapInsurance.com breaks down which states and drivers could be hit hardest, especially in high-cost areas like Florida and Louisiana, import-heavy states, and among lower-income households.

How the 25% auto parts tariff could hit your premiums

Experts expect vehicle repairs to become more expensive after the 25% tariff

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