Trump's 25% tariffs on imported vehicles — effective April 3, 2025 — will raise auto insurance costs unevenly across car brands. Drivers of fully imported models like the Toyota RAV4, Mazda CX-5, and Hyundai Elantra face insurance cost increases nearly three times larger than Tesla Model 3 or Ford F-Series owners, according to Insurify's model-by-model analysis of the 100 bestselling new cars.
- 25% tariffs on imported vehicles took effect April 3, 2025; parts tariffs followed May 3
- Insurance costs for the average vehicle projected to rise 9% by year-end, adding ~$214/year
- Highest-exposure brands: Buick, Hyundai, Kia (22–21% projected price increases, 8% insurance hike)
- Lowest-exposure brands: Tesla (3%), Jeep (6%), Honda (8%)
- 22 top-selling models face both a 25% price increase AND a 9% insurance cost increase
- Rate hikes won't hit your renewal for 12–18 months — the window to shop is still open
Which Cars Face the Biggest Insurance Hikes
The short answer: it depends almost entirely on where your car was built — and how many of its parts were made in the U.S.
Trump's 25% tariff on imported vehicles hit on April 3, 2025. A second wave of tariffs on imported auto parts — including engines, transmissions, and electrical components — followed on May 3. For insurance purposes, both matter. Insurers price premiums based on what it costs to repair or replace your vehicle. When parts get expensive, claims get expensive. When claims get expensive systemically, your renewal goes up.
Insurify analyzed the 100 most popular new car models by assembly location and U.S. content percentage using NHTSA data — and the results show a wide range of exposure depending on which brand and model you drive.
Tariff Exposure by Brand: From Worst to Best
Buick, Hyundai, and Kia face the steepest projected insurance increases — not because they're foreign brands, but because the majority of their popular models are assembled outside the U.S. with very little domestic content. Despite being a General Motors brand, Buick assembles three of its four top models in South Korea and China.
Tesla sits at the opposite extreme. The Model 3 and Model Y — Tesla's two bestsellers — are assembled in the U.S. with at least 70% domestic content, giving them the lowest tariff exposure of any brand analyzed.
| Brand | Projected Price Increase | Projected Insurance Increase | Exposure |
|---|---|---|---|
| Buick | +22% | +8% | High |
| Hyundai | +22% | +8% | High |
| Kia | +21% | +8% | High |
| BMW | +19% | +8% | High |
| Mazda | +19% | +8% | High |
| Lexus | +17% | +6% | Medium-High |
| Subaru | +16% | +6% | Medium-High |
| Chevrolet | +15% | +7% | Medium |
| Toyota | +14% | +6% | Medium |
| Ford | +13% | +6% | Medium-Low |
| GMC | +12% | +6% | Medium-Low |
| Honda | +8% | +4% | Low |
| Jeep | +6% | +4% | Low |
| Tesla | +3% | +3% | Very Low |
Source: Insurify, analysis of 100 most popular new car models for Q1 2025 using NHTSA assembly location and domestic content data. Only includes brands with multiple models in the top 100 by sales. Projections assume 25% tariffs on imported vehicles and parts.
Model by Model: The Most and Least Exposed
Aggregated brand figures only tell part of the story. Within brands, individual models vary significantly based on their specific assembly location and parts sourcing. The key variable is a model's U.S. content percentage — the share of a vehicle's components manufactured domestically.
According to Insurify, 22 of the top 100 bestselling new models face the maximum double hit: a 25% purchase price increase AND a 9% insurance cost increase. Seven of those are in the top 50 bestsellers for 2025:
- Toyota RAV4 (Japan, 0% U.S. content)
- Chevrolet Trax (South Korea, 2% U.S. content)
- Subaru Forester (Japan, 0% U.S. content)
- Mazda CX-5 (Japan, 0% U.S. content)
- Hyundai Elantra (South Korea, 0% U.S. content)
- Chevrolet Trailblazer (South Korea, 3% U.S. content)
- Hyundai Palisade (South Korea, 2% U.S. content)
At the other end, the Honda Ridgeline, Dodge Durango, Tesla Model 3, and Jeep Gladiator face the lowest projected tariff-related price increase — just 3%. Vehicles like the Ford F-Series (U.S.-assembled, 40% domestic content), Ford Explorer (U.S., 43%), and Chevy Silverado (U.S., 37%) face a modest 5–6% insurance cost increase.
The Toyota RAV4 is America's third-bestselling new model. It's assembled entirely in Japan with 0% U.S. content, according to NHTSA data. That means the full 25% tariff applies — and Insurify projects a 9% insurance cost increase for RAV4 owners on top of a 25% jump in purchase price. On an average $2,313 policy, that's roughly $208 more per year.
Why Your Car's Birthplace Determines Your Insurance Bill
The connection between tariffs and insurance runs through the repair shop.
When your insured vehicle is damaged, your insurer pays to repair or replace it. About 60% of the auto replacement parts used in U.S. repair shops are imported — the majority from Mexico, Canada, and China, all of which are now subject to Trump's tariff regime. When those parts cost more, repair bills go up. When repair bills rise systemically, insurers file rate increases with state regulators.
The American Property Casualty Insurance Association (APCIA) estimates the tariffs could add $7–$24 billion annually to auto insurance claims costs nationwide. There's also a vehicle replacement cost angle: comprehensive and collision coverage pays out based on your car's actual cash value. If tariffs push the replacement price of a fully imported model up by $8,000–$10,000, insurers adjust their valuations upward — which raises your comprehensive and collision premiums too.
"Of the 100 bestselling new models, 22 could face both a 25% increase in sales prices and a 9% increase in annual insurance costs. That includes seven of the top 50 bestselling new models of 2025." — Insurify
What This Means for You in Dollars
The average American pays $2,313 per year for full-coverage auto insurance, according to Insurify's rate data. Under the tariff scenario, that average rises to $2,527 by year-end — a 9% increase, or about $214 more per year ($18 per month).
But that's the average across all vehicles. Drivers of the 22 most-exposed models face the full 9% hit. In high-premium states like Florida or New York, the dollar impact is larger. A Florida driver currently paying $3,200/year could be looking at $288 more annually. You can see how your state compares on our car insurance by state guide.
On the vehicle purchase side, the Yale Budget Lab projects the average new car price rises by 13.5% — roughly $6,400 on the average 2024 model — under the current tariff regime. For fully imported models, the increase reaches $8,000–$10,000 or more. That higher sticker price also flows through to higher comprehensive and collision premiums.
What You Should Do Now
Look Up Your Vehicle's U.S. Content
Use the NHTSA's vehicle labeling database to check your specific model's assembly location and domestic content percentage. Models with 35%+ U.S. content face significantly lower tariff exposure on both purchase price and insurance.
Shop Your Rate Before Renewals Adjust
Insurers typically need 12–18 months for tariff-driven claims costs to fully work through to premium increases. That window is still open. Get quotes from at least 3 carriers before your next renewal. Our state-by-state comparison pages show average rates in your area.
Consider Raising Your Deductible
If rate increases hit your renewal, raising your collision or comprehensive deductible from $500 to $1,000 typically saves 10–15% on those coverages. Keep the difference in savings in an emergency fund to cover the gap if you need it.
Factor Tariff Exposure Into a New Car Purchase
If you're shopping for a new vehicle, check where it was assembled. Models like the Ford F-Series, Chevy Silverado, Ford Explorer, Hyundai Santa Fe (U.S.-assembled, 43% domestic content), and Tesla Model Y carry significantly lower tariff-driven insurance exposure than fully imported alternatives at similar price points.
Looking Ahead
The tariff landscape is not static. Hyundai — among the most exposed brands today — announced a $21 billion U.S. manufacturing investment in March 2025, including $9 billion to expand U.S. automobile production to 1.2 million units annually. As those production shifts take hold over the next 2–3 years, tariff exposure for future Hyundai and Kia models may improve. Hyundai's Georgia plant is already fully operational and producing the Santa Fe domestically, explaining why that specific model lands in the lower-exposure tier despite the brand's overall high rating.
For existing policyholders, the 12–18 month lag before tariff costs reach your renewal means late 2025 and 2026 are the primary risk window. Carriers who drive significant claims from high-imported-content vehicles will file for rate increases. The best time to shop for a better rate is before that wave arrives. For a deeper look at how individual carriers are positioned, see our GEICO auto insurance review — and check back as we publish reviews of additional major carriers.
Frequently Asked Questions
Yes — tariffs affect insurance primarily through repair part costs, not just new car prices. Since about 60% of auto replacement parts used in U.S. repair shops are imported, even owners of older vehicles will see some cost pressure. Models with high imported content face the steepest increases.
Typically 12–18 months after tariff-related claims costs begin rising. Insurers must file rate changes with state regulators and receive approval before implementing them. Most drivers won't see tariff-related increases until late 2025 or into 2026 — which is why shopping now is worthwhile.
Yes. Assembly location and U.S. content percentage are the key variables — not brand nationality. Some American brands (like Buick) assemble most models overseas, while some foreign brands (like Tesla) build everything in the U.S. Always check the specific model, not just the nameplate.
Models with the lowest projected insurance cost increase include the Tesla Model 3 (+3%), Honda Ridgeline (+3%), Dodge Durango (+3%), Jeep Gladiator (+3%), Ford F-Series (+5%), Ford Explorer (+5%), Ford Bronco (+5%), and Chevy Silverado (+6%). All are predominantly U.S.-assembled with substantial domestic content.
It reduces tariff exposure significantly, but insurance rates depend on many other factors: your driving record, location, coverage level, and the vehicle's overall repair cost profile. A U.S.-assembled car with expensive proprietary technology can still carry high insurance costs. Always get quotes for the specific vehicle you're considering before buying.
- Insurify — Tariffs Could Raise Prices for Popular New Models by 15% and Make Car Insurance More Expensive
- Insurify — Tariffs on Auto Imports Would Raise Car Insurance Rates 280% Faster
- Insurify — Tariffs on Canada and Mexico Could Raise Car Insurance Rates 60% Faster
- Bankrate — Insurance Industry Braces for Rising Rates Due to Tariffs
- The Zebra — How Tariffs Could Impact Your Car Insurance
- Yale Budget Lab — Fiscal, Economic, and Distributional Effects of 25% Auto Tariffs
- CNBC — Here's Why Trump Tariffs May Raise Your Car Insurance Premiums
- Insurance Journal — Insurance Industry Contemplates Knock-On Effect of Tariffs to Claims, Consumers