HEY THERE!
Drivers Trim Insurance Spending, Anticipating Tariffs to Boost Insurance Rates
Here's the lowdown on car insurance and its skyrocketing costs, thanks to Donald Trump's tariffs and COVID-19-related supply chain hiccups.
Over the past five years, car insurance costs have jumped by a whopping 67%, as per the latest CPI data. This escalation is primarily due to increased prices for repairs after COVID-19 disrupted the supply chain, making parts costlier. To make matters worse, Trump's tariffs on steel, aluminum, and imported cars are projected to push these costs even higher.
As a response, a staggering three-quarters of American drivers are finding their insurance policies unaffordable. To save a pretty penny, nearly one-third have opted for a higher deductible, while another third has reduced their coverage. Unfortunately, many of these cost-cutting drivers now find themselves without adequate protection.
In fact, in a recent survey by Jerry, more than a third of drivers who opted for a higher deductible admitted they'd struggle to pay for repair bills if they needed one today. Furthermore, three-fourths of drivers who cut back on coverage now feel they don't have the protection they need.
So, what can you do to shield your wallet from these rising costs? Well, it's all about striking a balance. You can explore higher deductibles or negotiate for lower premiums, but remember, don't sacrifice the coverage you need just to save a buck or two.
In case you're in the market for some financial advice, our website can help maximize your retirement income and provide personalized advice to help you navigate these times. (Paid non-client promotion).
More insights:
- Tariffs have led to higher prices for imported car parts, including critical components like engines, transmissions, and electronic systems. This is expected to drive up car repair bills for consumers and service costs due to the higher cost of essential components.
- Tariffs have also caused supply chain slowdowns, resulting in extended wait times for repairs as parts may take longer to arrive.
- Higher car parts prices due to tariffs can lead to increased insurance costs, with premiums expected to rise by nearly 10% later in the year.
- Insurance rates could also rise by about 6% year-over-year due to the increased cost of replacing parts.
In the realm of personal-finance, elevated insurance costs for cars have become a concern due to increased prices for parts caused by tariffs and supply chain disruptions. To minimize these costs, exploring higher deductibles or seeking lower premiums, while maintaining sufficient coverage, could provide some financial relief. Meanwhile, investors might consider the potential of crypto-finance, with tokens such as ICOs, as a means to enhance their portfolio diversity and future returns.
