On April 3, 2025, President Donald Trump announced new tariffs on imports into the United States. These included increases on foreign automobiles, vehicle parts, and construction and manufacturing materials.
While most tariffs above 10% were delayed for 90 days (excluding those on China), others were enacted as planned.
What does this mean for insurance? Industry experts anticipate that the increased cost of imported parts and materials will lead to a rise in auto insurance premiums—possibly as much as 10% by the end of 2025.
“Faced with this cost increase, we expect insurers will have no other option than to pass these losses on to drivers in the form of higher premiums.”
— Mallory Mooney, Director of Sales and Service, Insurify
Insurance carriers calculate premiums based largely on anticipated claim costs. As those costs rise—due to higher repair and rebuild prices—premiums must also increase. This is especially concerning for homeowners in areas prone to natural disasters, where some carriers have already raised rates or exited the market altogether.
Consider this: in 2023, 71% of lime and gypsum (used in mortar and other building materials) came from Mexico, and about 70% of timber was imported from Canada. Both countries are now subject to steep tariff hikes, which could drive up both construction costs and home insurance premiums.
Need Help Navigating the Changes?
At Hodge, Hart & Schleifer, we’re here to help you manage uncertainty with confidence. As economic shifts and tariffs continue to affect homeowners and drivers, our team is ready to guide you through your insurance options.
Contact us today to discuss how to protect your property while securing the best possible rates.
The content of this News Brief is of general interest and is not intended to apply to specific circumstances. It should not be regarded as legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. © 2025 Zywave, Inc. All rights reserved.