Report: Tariffs could drive up Utah car insurance rates by year's end
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Car insurance rates in Utah could rise more by the end of the year thanks to tariffs, a new projection finds.
Why it matters: The analysis illustrates just one more way Americans pay for higher tariffs.
Driving the news: The nationwide average annual cost of full-coverage car insurance could rise 7% between June and December if tariffs stay in effect, compared to 4% otherwise, per a new report from insurance-comparison platform Insurify.
- In raw terms, the average cost could hit $2,472 with tariffs, compared to $2,402 without them.
- For Utahns, rates are expected to climb about 7.6% with tariffs to $2,006 or 4.6% to $1,950 without.
Between the lines: 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.
By the numbers: Utahns typically pay about $1,978 for full coverage auto insurance annually, or nearly $165 a month, which is about 17% lower than the national average.
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 are based on over 97 million rates from the insurance companies it works with, and reflect median costs for drivers age 20-70 with clean records and at least average credit.