After officials implemented a 25% tariff on auto parts, there is growing concern in the auto industry that it could have a serious impact for car owners across the country.
According to MarketWatch, auto insurance premiums could increase by up to 8% by the end of 2025. Why? Because when the cost of auto parts goes up, so does the cost of vehicle repairs. As repair costs climb, insurers are likely to raise premiums across the board to help offset those expenses.
In fact, industry analysts estimate the added expense could total between $7 billion and $24 billion in additional claim costs per year. That means insurance companies may start adjusting rates within 12 to 18 months of the tariffs taking effect.
At South Carolina Federal Insurance Solutions, we’re committed to helping you find auto coverage that fits your budget without compromising the protection you need. Our advisors can compare quotes from multiple top-rated carriers and help you select the best option for your current needs.
Click here to get personalized guidance on your auto insurance options today.
