If you’re a driver in the United States, you’ve probably noticed: the cost of car insurance keeps going up. And by the looks of it, the bill is going to get even bigger in the coming months — even if you haven’t changed cars or been in an accident.
What’s behind this constant increase? The answer, unfortunately, is complex: inflation, repair costs, a rise in claims, and now, new tariffs on imported parts and vehicles that are expected to directly impact premium prices in upcoming renewal cycles.
New Tariff, Higher Premium
According to an analysis by the Insurify platform, the average cost of full coverage car insurance in the United States was just over $2,300 at the end of last year (2024). The initial estimate was that this amount would rise by 5% this year, based on factors such as inflation and insurer losses. But after the Trump administration announced new tariffs on cars, steel, aluminum, and auto parts, the projection increased to a 16% hike — which could push the average premium to nearly $2,700.
These tariffs have already taken effect and directly impact the cost of car parts — about 60% of components used in repairs come from Mexico, Canada, and China. In other words: if it costs more to fix your car, insurance prices go up too. Simple as that.
A Trend That Was Already Rising
Even before the tariff discussion, insurance prices were already climbing. Data from the Bureau of Labor Statistics shows that insurance costs rose 7.5% in March compared to the previous year. The reasons vary: more accidents post-pandemic, more expensive technology in cars (which raises repair costs), and even weather events like hail and storms, which increase claims.
When Will the Increase Hit Your Wallet?
It’s important to remember that the impact of the new tariffs won’t be immediate. Since insurance is billed in cycles, usually annually, most drivers will only see the difference when it’s time to renew their policy — which may happen at the end of the year or in 2026.
Even so, now is the perfect time to review your coverage, understand what you’re really paying for — and make decisions that can help avoid larger-than-necessary increases.
What Can You Do to Pay Less?
There’s no magic formula, but a few practical strategies can help control costs:
Review Your Coverage
If your car is old or of low value, consider removing coverage like collision or comprehensive, which can represent a significant portion of your premium.
Raise Your Deductible
Doubling your deductible from $500 to $1,000 can reduce your premium by up to 25%. But remember: you’ll need to have that amount available in case you need to file a claim.
Update Your Mileage
Are you working from home or driving less? Let your insurer know. Less use means lower risk — and could translate into a lower premium.
Use Online Comparison Tools
Shop around for other insurance providers. Just be careful to use a secondary email address, as these platforms tend to generate a lot of marketing messages.
Consider Monitoring Programs
Some insurers offer discounts if you install a device that monitors your driving. Just signing up may get you an initial discount, and good driving behavior could reduce your cost even further.
Take Advantage of Available Discounts
Students with good grades, automatic payment plans, or defensive driving courses can all qualify for discounts.
But Pay Attention to Privacy
Programs that track your driving behavior are still controversial. Groups like the Consumer Federation of America warn about the lack of data protection: there’s still little clarity on what insurers do with the collected information — and no guarantee that the data won’t be used negatively.
Conclusion: High Premiums, but With Choices
Yes, car insurance in the United States is getting more expensive — and it will likely continue to rise. But that doesn’t mean you’re out of options.
With the right information, policy review, and strategic decisions, it’s possible to minimize the impact of these increases and keep your coverage without compromising your budget.
If I may offer one last suggestion: before automatically renewing your policy, pause and ask questions. Is your car still worth the same? Has your routine changed? You can negotiate with your insurer. Saving money might just be one conversation away.
