Increased auto part costs from tariffs could also drive up auto insurance premiums
The push to balance global trade could impact how much you pay for car insurance.
Insurify, which helps drivers compare quotes from multiple providers, says the increased cost of auto parts from tariffs will drive up Michigan auto insurance premiums by 17 to 20 percent by the years end.
As insurers try to pay for the cost of repairs, all of a sudden, repairs are more expensive because parts are more expensive, and insurers would stand to lose money, and when theyre in a situation like that, they often turn around and pass those cost increases onto consumers, Matt Brannon from Insurify said.

Brannon says Michiganders could pay, on average, an extra $400 a year. That news is blindsiding drivers like Margaret Whitaker.
Being a senior, which I am, it really hurts. Everything is changing as far as pricing is concerned, but our income is remaining the same, Whitaker said.

What are people going to do? Sherry Billingslea asked. Theyre not gonna pay for car insurance. Theyre going to pay for mortgage first, utilities first. Car insurance will be on the back burner.

We reached out to several top auto insurers for comment, but have not received a response.
Bob Passmore, Vice President of Auto and Claims at the American Property Casualty Insurance Association, says its difficult to determine how much each policyholder will have to pay.
If you have a six-month policy, you might see it the next time the policy renews in six months. More than likely, itll be longer than that. Most policies are 12 months, Passmore said.

The White House says its using the tariffs to strengthen the countrys economic position on the world stage and protect American workers. It cited a 2024 analysis that found that a global tariff of 10 percent would grow the economy by more than $700 billion, create nearly three million jobs, and increase household incomes.
Could we expect those premiums to go back down in a perfect world if auto parts were to go back down, or is this pretty much going to be the new normal? 7 News Detroit asked Brannon.
If tariffs went away, its so hard to say right now, its so rare for prices to go back down after they go up for the first time. You also have domestic suppliers that are likely to raise their prices to match what foreign suppliers would be doing, Brannon said.
Extended interview: Matt Brannon with Insurify on why insurance premiums will rise Extended interview: Matt Brannon with Insurify on why insurance premiums will riseErin McDonough, Executive Director of the Insurance Alliance of Michigan, provided a statement saying:
Thanks to bipartisan auto no-fault reforms passed in 2019, drivers have saved more than $8 billion in Personal Injury Protection (PIP) premiums and the fee assessed by the Michigan Catastrophic Claims Association. And that number continues to grow, reducing the cost of the PIP portion of consumers premium. If the supply chain is disrupted by the ongoing tariff issue, it could cause auto part costs to increase and lengthen the amount of time it takes to repair a vehicle, adding to the expense inflation has already added to the comp and collision portion of the auto insurance premium. While the impact of tariffs is largely out of our control, we can control cost drivers that impact auto insurance in the PIP portion of the premium by preserving and building upon the 2019 reforms. Reducing frivolous lawsuits would be another important step lawmakers can take that would have a real impact on the areas of auto insurance Michigan can control.The Insurance Information Institute stated:
The tariffs announced yesterday, which will impact imported vehicles and auto parts, are expected to inflate the cost of new cars, repairs and used car values due to tight profit margins for manufacturers and the interconnected global supply chain. The tariffs could also lead to broader macroeconomic and geopolitical disruptions, potentially expanding the impact on U.S. property/casualty insurers. This could generate higher premiums for home insurance and business insurance. Some auto insurers have indicated the tariffs could lead to higher premiums by the end of 2025. For all consumers, auto rates would not change until their insurance policy is up for renewal. No premium changes will be implemented on existing policies.