When most people hear about new tariffs, they think about groceries, gas prices, or manufacturing. But there’s another area where tariffs can quietly hit your wallet: your insurance premiums. When the cost of materials goes up, so can your coverage.
Here’s how it works—and why it matters to you.
What do tariffs have to do with insurance?
Tariffs are taxes on imported goods. When these taxes are imposed or increased, the cost of materials, like steel, aluminum, auto parts, or construction supplies, can rise across the board. And when repair and replacement costs go up, so does the cost to insure those items.
Whether it’s your car, home, or business, insurance companies consider the cost of repairing or rebuilding when determining your premiums.
Auto insurance: Rising repair costs
Modern vehicles rely on parts and components sourced from all over the world. If tariffs affect auto parts, like bumpers, sensors, or windshields, repair costs after an accident can climb significantly. Insurance companies may then raise premiums to reflect that increased risk.
Homeowners insurance: Building materials matter
If the price of imported materials like lumber, steel, or roofing supplies goes up, the cost to rebuild or repair a home increases, too. That can trigger a bump in homeowners insurance premiums—even if you’ve never filed a claim.
Business insurance: Equipment and inventory risks
Tariffs can also impact commercial policies. If your business relies on imported machinery or stock, any jump in replacement costs can lead to higher premiums for property or equipment coverage.
What can you do about it?
You can’t control global trade policy, but you can review your insurance regularly.
Here are some tips:
- Talk to your agent. We’ll help you understand how market shifts might affect your policy.
- Shop smart. Independent agents like us work with multiple carriers to find the best fit.
- Bundle up. Packaging your home, auto, and other policies can help offset increases with multi-policy discounts.
Need help navigating the changes?
At Davis Insurance, we stay on top of the trends so you don’t have to. Whether it’s tariffs, inflation, or weather risks, we help your policy keep pace with the world—without the guesswork.