Tariffs could drive up Indiana car insurance rates
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Car insurance rates could rise more by the end of the year with tariffs than without them, a new projection finds.
Why it matters: The analysis shows another way that Americans pay for higher tariffs.
Driving the news: Hoosiers' average annual cost of full-coverage car insurance could jump by 5.9% between June and December if tariffs stay in effect, per a new report from insurance-comparison platform Insurify.
- It'd increase 2.9% otherwise.
- In raw terms, the average cost for Indiana residents would be $1,737 with tariffs and $1,641 without them.
- That's based on the tariff picture as of Aug. 1, reflecting the Trump administration's recently lowered rates on cars and auto parts from Japan, South Korea and Europe.
That's less than the nationwide average, which could rise by 7% between June and December if tariffs stay in effect, compared to 4% otherwise.
Between the lines: Tariffs affect insurance rates by increasing the costs of imported parts needed for repairs.
- Inflation, accident frequency, and claims due to extreme weather also impact rates, among other factors.
Caveat: Premiums may fluctuate as the fast-changing tariff landscape continues shifting, or if tariffs prove "less burdensome than expected," Insurify notes.
- Claims volume could also fall, and insurance regulators could fight price hikes.
How it works: Insurify's projections are based on over 97 million rates from the insurance companies it works with, and reflect median costs for drivers aged 20-70 with clean records and at least average credit.
Go deeper: Indiana's car insurance rates rise