The 25% tariff placed on automobiles by the Trump Administration is now in effect. That has Kentuckians purchasing auto insurance concerned that those prices will be rising too.
Dan Scroggins is the vice president for personalized insurance at Triple-A Club Alliance. He said, with the price of vehicles going up, it is highly likely the automobile insurance rates will go up.
“Will we see price increases? I think, necessarily, yes in the short run. If we eventually bring manufacturing and things back into our country, but to rebuild the supply chain takes years, or a decade, that's not something, flip a switch and the supply chain changes.”
He said customers could see some increases to their policies if these tariffs continue.
“You're probably not going to see a dollar for dollar or a percent to percent increase in a cost of a policy, but the parts of a policy that are made up of coverages that would cover physical damage, now that you might see dollar for dollar increase there.”
Scroggins said if manufacturing returns to the U.S., rebuilding the supply chain would take years or even decades.
S&P Global Mobility reports that nearly half of the 16 million new cars purchased in the U.S. In 2024 were imported.
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