Car insurance could get pricier
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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 one more way that Americans pay for higher tariffs.
Driving the news: The nationwide average annual cost of full-coverage car insurance could rise by 7% between June and December if tariffs stay in effect, compared to 4% otherwise, per a new report from insurance-comparison platform Insurify.
Zoom in: In North Carolina, Insurify is projecting rates to rise by 6% to $1,339 per year with tariffs compared to 3% 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.
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.
In North Carolina, there are other factors causing higher insurance rates for some drivers, including a new law that extends how long new drivers pay a surcharge on insurance, doubles the minimum liability limits of the cheapest policies and extends how long speeding infractions are held on a driver's record.
Reality check: North Carolina still boasts some of the lowest car insurance costs in the country.
Caveat: Premiums may fluctuate as the fast-changing tariff landscape continues shifting, or if tariffs prove "less burdensome than expected," Insurify notes.