The new tariffs being implemented are affecting much of the economy. Whether you think that impact is good or bad, one thing is virtually certain about its impact on insurance. The new tariffs are likely to cause your home and auto insurance rates to increase.
The most direct impact of the tariffs on insurance rates will stem from the rising cost of materials. The tariffs aren't just affecting the price of new cars; they are also increasing the cost of auto parts and building materials, making repairs more expensive for homes and vehicles.
If repairs are more expensive across the board, and insurance companies' costs go up by paying out more for claims, premiums will likely rise.
Creating more skilled jobs is beneficial and good for the economy overall due to higher wages. However, higher wages may also have the unintended consequence of increasing repair costs.
There are places in the US where unemployed workers can fill new jobs. New Hampshire is not one of them.As of March 2025, NH had a 3.1% unemployment rate, indicating fewer skilled workers, which leads to higher wages and, consequently, higher costs.
Tariffs on imported vehicles and parts are likely to increase the prices of new cars. Higher new car prices could, in turn, lead to increased used car prices as drivers postpone trading in.
Higher car prices would raise insurance companies' costs for totaled vehicles. Comprehensive and collision coverage typically pays up to a vehicle's actual cash value, which may remain high for some time.
An increase may not be immediately apparent, as most insurance companies submit rate increases to a state's insurance department and require its approval before implementing the change.
This can take some time, and if approved, you will see the impact on your policy's renewal, not during the current policy period.
Moreover, don’t assume that rising costs will definitely result in an increase in your premium. While this is likely,there are other ways insurers can absorb the rise of expenses. They could:
With many factors contributing to increases in home and auto insurance premiums, it’s especially important to work with an independent agency like HPM Insurance. Being an independent agent means we represent multiple insurance companies, not just one or two. This allows us to compare how the carriers are managing increased costs and work with you to find a solution that fits both your needs and budget.