Auto Insurance Rates Likely to Rise Due to New Tariffs on Car Manufacturers

Gaithersburg, Maryland Apr 4, 2025 – Capitol Benefits, LLC, a leading independent insurance agency, is alerting consumers to potential shifts in auto insurance rates due to recently enacted tariffs on automakers. These tariffs are predicted to drive up the cost of vehicle parts, which, in turn, is expected to impact insurance premiums.

According to Josh Lavine, President of Capitol Benefits, “The new tariffs on automakers are poised to substantially increase the cost of many car parts. As repair expenses increase, insurance companies will likely adjust their premiums to offset these higher costs. This could translate to higher auto insurance rates for consumers in the near future.” He further noted, “Consumers are already facing rising insurance costs due to increasing labor and parts expenses. This represents another wave of potential premium hikes. Fortunately, we are well-equipped to help our clients navigate these increases.”

Here are some steps consumers can take to lessen the impact on their insurance rates:

• Increase deductibles – Opting for higher deductibles can lead to lower premiums.
• Self-insure minor issues – Avoid filing claims for small repairs that you can afford to pay for out of pocket.
• If you’re involved in an accident where no one is hurt, contact the other party’s insurance provider directly instead of reporting it to your own. Some insurers might raise your rates even if you weren’t at fault.
• Work with an independent agent – Certain insurance companies are better suited for younger drivers, while others cater to older drivers, those with prior accidents, or those with clean records. As your circumstances change, you may need to switch insurers. An independent agent can simplify this process since they already have your information.

The tariffs, affecting a broad spectrum of automotive components, are projected to increase the price of both new and used vehicles by as much as 25%, impacting both domestic and foreign brands. This price surge will not only affect car buyers but also the cost of repairs and replacements, leading to increased insurance claim payouts. Consequently, insurance companies will likely revise their pricing strategies to accommodate these higher expenses.

Lavine added, “At Capitol Benefits, we are dedicated to assisting our clients through these changes. We encourage consumers to re-evaluate their current policies and explore ways to mitigate the effects of rising insurance rates. Our team is available to offer guidance and support during this transition.”

Capitol Benefits, LLC, partners with over 200 reputable insurance companies, providing extensive coverage across various insurance types. For additional details or to arrange a consultation, please contact Capitol Benefits at (301) 431-0000 or visit .

**About Capitol Benefits, LLC**

Capitol Benefits, LLC, is an award-winning independent insurance agency located in Gaithersburg, MD. With over 22 years of experience, Josh Lavine and his team deliver tailored insurance solutions to meet the specific needs of their clients. Capitol Benefits is committed to providing outstanding service and securing the best possible coverage at competitive prices.