| |  | | April 25, 2025 | | | | | | | | Why Your Auto Insurance Could Jump by $446 This Year | By Keith Wagstaff
Cars and tariffs. There's more at stake than the price on the lot.
New tariffs on imports of autos, parts and related materials will drive up not just the cost of a vehicle, but the cost of repairs and, in turn, the price of auto insurance, analysts say.
By the end of this year, the average annual premium on an auto policy is expected to reach $2,759 — an increase of $446, or 19%, from the end of 2024, according to Insurify, an online insurance agency. And there's a big variation by state.
"The consensus is that recent tariffs will raise the price of auto parts and cause insurers to spend more money on repair claims," Mallory Mooney, director of sales and service at Insurify, said in a statement earlier this month. "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."
Car repair costs have already been increasing, and in fact, the average insurance premium rose even more (by 24%) in 2023 because of soaring inflation and claims related to severe weather, according to Insurify.
But before the tariffs were imposed, Insurify expected this year's increase to be significantly smaller — 5.3%, or $122. | | | | | | |   | | Crumbling Sentiment | Darkening macro clouds are evident in a wide variety of so-called soft data (qualitative information collected through surveys). According to the American Association of Individual Investors, over the last two months, there have been roughly twice as many bearish investors as bullish ones. That's not a major surprise given the steady drumbeat of negative news on the trade front.
However, this pessimism has also found its way to business executives. Several regional Federal Reserve banks conduct monthly surveys of manufacturing and services businesses in their districts to get a feel for how operators see things.
By incorporating their views on factors like orders, workforce activity, and price trends, the Fed banks publish indexes to approximate overall activity.
While April data remains partial, the composites across regions have fallen into firmly negative territory (0 = neutral). Here's what that might mean for investors.
Read more | | | | | | | | | 'Tariff-free' car ads: The president's 25% tariffs on auto imports have started, but some dealerships are using pre-tariff inventory to lure buyers. (Yahoo Finance)
Student loans pull average credit score down: The average FICO score nationwide dipped one point to 715 between January and February. The driver? Federal student loan delinquencies. (FICO)
The global impact of tariffs: The International Monetary Fund lowered its forecasts for global economic growth, citing U.S. tariff actions and a highly unpredictable environment. (IMF) | | | | | | | | Wage Garnishment | | | | | Wage garnishment is one way someone can collect on a debt. It's a legal process that allows part of your paycheck to be garnished, or taken, by the government or person you owe money to.
Right now this is being discussed in the context of federal student loans. The Education Department announced earlier this week that its Federal Student Aid office would resume collections on defaulted loans for the first time in five years. Borrowers in default (typically those who are at least nine months behind on their payments) have until May 5 to make arrangements with the FSA. Otherwise they could face wage garnishment this summer.
Here's more on how wage garnishment works and steps you can take to avoid it. | | | | | | | | Intel, insights, and inspo for your money. | | On the Money cuts through the noise of day‑to‑day financial news to bring you a more thoughtful point of view on what's important in this moment — and how it impacts your bottom line. We value your trust above all. | | | | | | | | | | Did you find today's newsletter valuable? | | | | |
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