Illinois Drivers Facing Additional 18% Insurance Rate Hike Due to Tariffs, Insurify Report Revealss and Inflation

Illinois Drivers Facing Additional 18% Insurance Rate Hike Due to Tariffs, Insurify Report Revealss and Inflation

Tariffs might raise auto insurance prices in Illinois by another 18% after inflation caused a comparable spike in 2024, according to a new analysis by Insurify.

Matt Brannon, an Insurify data journalist, stated that predictions may fluctuate depending on whatever tariffs are ultimately implemented. He stated that the analysis took into account tariffs imposed by Mexico and Canada, as well as steel and aluminium duties and tariffs projected to be imposed on autos and auto parts.

“Before any tariffs had been announced, we expected car insurance prices to go up 5% for the average driver. Now, with all of these three sets of tariffs applied by the end of the year, it would be 19% higher,” Brannon told The Center Square.

Brannon stated that with the tariffs in force, the increase in Illinois would be 18% rather than 4%.

“Consumers are going to end up paying around $300 roughly more than they would have if these tariffs never went into effect,” Mr. Brannon said.

Last year, Illinois car insurance premiums increased by 18%, increasing the average yearly full coverage cost to $1,963.

According to Insurify, drivers in neighbouring states pay less. Indiana vehicle premiums average $1,654, which is 19% lower than Illinois rates. Iowa, at $1,582, is 24% lower than Illinois, and Missouri, after a 29% increase last year, remains 12% lower.

According to the survey, rising claims costs, repair charges, and industry-wide pricing revisions may all contribute to higher vehicle insurance premiums in Illinois. For citizens, however, rising prices are compounded by some of the highest property taxes in the country and an economy sensitive to downturns due to the state’s huge financial commitments.

President Donald Trump claimed that tariffs would create employment in the United States and boost the economy.

The president announced last week at the White House that Hyundai would construct a $5.8 billion steel mill in Louisiana.

“Hyundai will be producing steel in America and making its cars in America. As a result, they’ll not have to pay any tariffs. You know, there are no tariffs if you make your product in America,” Trump said.

The project is anticipated to generate 2.7 million tonnes of steel for Hyundai’s vehicle plants in Alabama and Georgia beginning in 2029.

Brannon stated that tariffs will lead car insurance rates to climb between now and then.

“In the years in between, insurers still have to pay for the parts that haven’t yet been moved into the U.S., so they still face higher costs. They are able to turn around and show regulators, ‘Hey look, our costs have gone up,’” Brannon said.

Brannon said that US car parts producers that are not subject to tariffs may hike prices as if they were.

Jean Lopez

Jean Lopez

Jean Lopez is a dedicated journalist at Miami Standard News, specializing in local and crime reporting. She has a passion for sharing information which helps the community in any way possible.

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