Tariffs could drive up Pennsylvania car insurance rates
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Car insurance rates in Pennsylvania could climb even higher by year's end — driven by new tariffs, per a new Insurify report.
The big picture: The average annual cost of full-coverage car insurance in the U.S. could rise 7% between June and December if tariffs stay in effect, compared to 4% otherwise, Insurify finds.
Zoom in: Pennsylvanians' rates are expected to increase about 6.8% with tariffs to $2,223, or 3.7% to $2,160 without.
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.
What they're saying: "Initially, car insurance companies looked at 2025 as a year to keep insurance rates stable, or even cut them," per Insurify's report.
- "Tariffs and inflation could derail that trend."
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, based on over 97 million rates, reflect median costs for drivers aged 20-70 with clean records and average or better credit.
The bottom line: Now's the time to shop around for the best car insurance rates you can find.