How Are Tariffs Affecting Insurance Costs?

Under the current administration, new government policies have increased tariffs on United States trading partners. This new practice involves a universal tariff on incoming imports to the U.S., in addition to a more expensive tax on imported cars, auto parts, and other materials used in manufacturing in order to even out the trade deficit and increase the amount of manufacturing within America. One major result of these tariffs is a noticeable rise in the price of products, services, and insurance premiums. If you have questions about the insurance market in San Diego, California, Windfall Services Inc. is here to help. Continue reading to learn more about how tariffs are affecting the cost of insurance.

Comprehending Tariffs On Auto Parts And The Impact On Auto Insurance

The tariffs that have been placed on vehicles that are created outside of the U.S. are not the only thing to impact the auto insurance industry. Tariffs on auto parts made outside of the country have caused an increase in how much it costs to repair a vehicle, which consequently have led to higher insurance claims when an automobile gets damaged in an accident. The rising cost of the vehicles themselves, as well as the higher cost of auto parts have caused insurance agencies to increase their premium coverage costs to compensate for the more they must spend to repair or replace a vehicle.

The Impacts Of Tariffs And Homeowners Insurance

For those that are property owners, tariffs have also caused an increase in homeowners insurance. The United States receives numerous home building materials like aluminum, wood, and steel from other regions, including Germany, Canada, China, and Japan. The tariffs on these materials have made the cost of labor, home construction, and home renovations more expensive. Therefore, this has required homeowners to expand their coverage limits, which consequently makes their homeowners insurance premiums more expensive.

How To Handle The Rising Cost Of Insurance Premiums

Despite the rising costs of insurance premiums due to trade tariffs, there are still steps that you can take to maintain sufficient insurance coverage at an economical price. Some things you can do to ensure that you are not overpaying for insurance coverage is to combine your other policies into one bundle if you have other types of coverage, increase your deductible, work with an insurance agent to compare the prices of coverage, and see if you are able to qualify for any insurance discounts. Sometimes insurance companies will offer discounts for a good driving record, if you upgrade your home security or energy efficient home features, or if you belong to a certain profession, such as the military, education, or law enforcement.

If you are located in San Diego, California, and have questions about your insurance coverage, contact Windfall Insurance Services Inc. today for a consultation.