President Trumpâs aggressive return to tariff-heavy policies in 2025 isnât just rattling Wall Street; itâs hitting us here on Main Street too. And while it might not make headlines every day, this new wave of tariffs is quietly working its way into your wallet.
Steep duties on key imports like steel, copper, lumber, and auto parts may seem like a trade issue. Still, when youâre a homeowner repairing a roof, a driver fixing a fender bender, or a business owner keeping operations afloat, the ripple effect is real. The rising costs of materials and labor mean one thing: higher insurance claims, higher premiums, and more fees for all of us.
So, whatâs the bottom line? If youâve noticed your insurance costs are creeping up, tariffs could be a hidden reason why. Whether you’re protecting a home, a vehicle, or a business, here’s what you need to know about how these policies are reshaping insurance in 2025âand how to stay protected without breaking the bank.
đ What’s Happening with Vehicle Insurance?
Today, over half of the vehicle parts used in the U.S. are imported. With tariffs up to 50% on these parts, even a fender bender can turn into a five-figure repair.
- Over half of U.S. vehicle parts are imported.
- Repair costs are rising sharply due to these tariffs.
- The American Property Casualty Insurance Association (2025) estimates this could increase auto insurance claims by $7 billion to $24 billion every year.
- Insurance comparison site Insurify (2025), predicts full-coverage premiums could jump by as much as 19% before the year ends.
- For businesses with vehicle fleets, expect longer downtimes and higher premiums because delays and costs increase risk.
đïžHow is Commercial Property Insurance Affected?
If your business owns a building or if you are planning renovations, Brace yourself. Construction materials are also caught in the tariff web, with big hikes on:
- Aluminum and appliances like refrigerators: up to 50% tariff
- Steel: 25% tariff
- Canadian lumber: 20% tariff
- Copper (used in wiring): proposed 50% tariff
According to the National Association of Home Builders (2025), tariffs have added $7,500 to $11,000 to the cost of building a new home. These costs hit commercial properties even harder.
âłBusiness Face Interruption Risk Too
Higher raw material costs and supply chain delays are making it harder for many businesses to keep running smoothly.You might experience:
- Delays in supplies
- Increased production costs
- Unpredictable insurance rates
Industries like auto, electronics, apparel, and construction are especially vulnerable. Even short disruptions can hurt your revenue and coverage planning.
đ§ Smart Moves for Business Owners
Tariffs keep changing, making it tough for insurers to predict future claims and set rates.Insurance companies are watching these changes closely. Many are adjusting policies to reduce their own risks. But that doesnât mean youâre stuck. Hereâs what you can do:
- Review your coverage limits: Make sure your coverage reflects the increased costs to rebuild or repair.
- Consider higher deductibles to lower your premium: This can lower premiums but means paying more out-of-pocket if you file a claim.
- Expect longer repair and claim timelines: Expect delays in repairs and adjust your business plans accordingly.
- Explore new vendors: If tariffs are driving up costs on parts from certain countries, explore suppliers from other places.
𧩠Bridging the Gap: Weâre Here to Help
At Neighborhood Insurance Agency, we know navigating insurance costs is toughâespecially with shifting policies and unpredictable tariffs. Thatâs why weâre here to help you stay ahead.
Whether youâre protecting a home, car, or business, our agents can:
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Check for coverage gaps
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Help adjust your limits
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Find cost-effective options that make sense
đ Call us at (714) 285-9990
đ§ Email us: cs@niacoverage.com
đ Visit: www.niacoverage.com
â Ready for Peace of Mind?
Let us do the hard work so you don’t have to.
We’ll help make sure you’re protected and not overpaying for it.