Tariffs Could Add 9% to Auto Insurance Costs for 23 Popular Car Models, Insurify Projects

23 Models Face the Maximum Tariff-Driven Insurance Increase

Insurify's data science team analyzed the 100 bestselling new car models using American Automobile Labeling Act (AALA) data, assembly location records, and more than 97 million insurance quotes from 120+ carrier integrations. Their April 2026 report identifies 23 models that could see insurance costs climb by 9 percentage points beyond the pre-tariff baseline. Seven of those 23 rank among the nation's top 50 bestsellers, according to the analysis.

The Toyota RAV4, America's third-bestselling new vehicle, sits at the top of the impact list. Assembled entirely in Japan with 0% U.S. content per NHTSA data, the RAV4 faces a projected 25% tariff-related price increase and a 9% jump in insurance costs. Subaru's Forester and Mazda's CX-5, both also assembled in Japan with 0% domestic content, fall into the same maximum-impact category.

South Korean-assembled models dominate the 23-vehicle list. The Hyundai Elantra (0% U.S. content), Hyundai Kona (1%), Hyundai Palisade (2%), Kia K5 (0%), Kia Seltos (1%), Kia Soul (1%), Kia Carnival (2%), Chevrolet Trax (2%), Chevrolet Trailblazer (3%), and Buick Encore (2%) all face the 25%/9% maximum increase, according to Insurify.

Which Brands Get Hit Hardest

Insurify ranked 16 carmakers with multiple models in the top 100 by their average tariff-related insurance cost increase. Buick, Hyundai, and Kia tied for the highest projected insurance increase at 8%, followed by BMW and Mazda, also at 8%. For a deeper breakdown of brand-level impacts, see our analysis of tariff costs by auto brand.

Brand	Projected Price Increase (New Models)	Projected Insurance Cost Increase	Pre-Tariff Baseline Insurance Increase
Buick	22%	8%	5%
Hyundai	22%	8%	5%
Kia	21%	8%	5%
BMW	19%	8%	5%
Mazda	19%	8%	5%
Chevrolet	15%	7%	5%
Toyota	14%	6%	5%
Ford	13%	6%	5%
Honda	8%	4%	5%
Jeep	6%	4%	5%
Tesla	3%	3%	5%

Source: Insurify, April 2026. Based on analysis of 100 bestselling new car models in Q1 2025. Price increases reflect a flat 25% tariff on imports outside U.S., Mexico, and Canada, plus 25% tariff on foreign content share for USMCA-assembled vehicles. Insurance projections based on 97M+ quotes from 120+ carriers for drivers ages 20-70 with clean records and average or better credit.

Tesla stands out as the least-affected major brand. The Model Y and Model 3, assembled in the U.S. with 70-73% domestic content, face only a 3% projected price increase and 2-3% insurance cost rise per Insurify. Compare that to the Buick Envision, assembled in China with 6% U.S. content, which faces the full 25%/9% hit.

The 23 Models Facing the Highest Insurance Increase

All 23 models below are projected to see a 9% tariff-driven insurance cost increase, according to Insurify's analysis. Assembly country and U.S. content percentage come from NHTSA's AALA data. Vehicles assembled in Japan and South Korea with near-zero domestic content face the steepest combined impact on purchase price and insurance premiums.

Model	Price Increase	Insurance Increase	Assembly Country	U.S. Content
Toyota RAV4	25%	9%	Japan	0%
Subaru Forester	25%	9%	Japan	0%
Mazda CX-5	25%	9%	Japan	0%
Mazda CX-90	25%	9%	Japan	0%
Toyota Prius	25%	9%	Japan	0%
Toyota Land Cruiser	25%	9%	Japan	0%
Volvo XC60	25%	9%	Sweden	0%
BMW 4-Series	25%	9%	Germany	0%
Mitsubishi Outlander	25%	9%	Japan	4%
Hyundai Elantra	25%	9%	South Korea	0%
Hyundai Sonata	25%	9%	South Korea	0%
Hyundai Kona	25%	9%	South Korea	1%
Hyundai Palisade	25%	9%	South Korea	2%
Kia K5	25%	9%	South Korea	0%
Kia Seltos	25%	9%	South Korea	1%
Kia Soul	25%	9%	South Korea	1%
Kia Carnival	25%	9%	South Korea	2%
Chevrolet Trax	25%	9%	South Korea	2%
Chevrolet Trailblazer	25%	9%	South Korea	3%
Buick Encore	25%	9%	South Korea	2%
Buick Envision	25%	9%	China	6%
Buick Envista	25%	9%	South Korea	3%
Lexus NX	25%	6%	Japan	32%

Source: Insurify, April 2026. Assembly countries and U.S. content share from NHTSA AALA data. For models with multiple trims, increases in sales price and insurance costs were averaged across trims.

Why Imported Parts Drive Insurance Costs Higher

About 6 in 10 auto replacement parts used in U.S. repair shops come from Mexico, Canada, and China, according to Insurify's data. A 25% tariff on those parts raises the cost of every collision repair, windshield replacement, and total-loss payout. Insurers absorb those costs initially through claims payments, then pass them to policyholders through higher premiums at renewal.

The American Academy of Actuaries flagged this ripple effect in a March 2026 brief, noting that "car replacement costs covered by insurance are very likely to rise" as tariffs take hold. General Motors told investors that tariffs could cost the company upward of $5 billion, according to AP reporting. Ford announced a projected $1.5 billion loss from tariffs, and responded by raising prices $2,000 on three Mexico-built models, per CBS News.

Only about 48% of new popular models are assembled solely in the U.S., followed by 19% in Mexico and the remainder in Japan, South Korea, Germany, and other countries, according to Insurify. That global supply chain means even "domestic" vehicles contain significant foreign content. The BMW X3, for example, is assembled in Spartanburg, South Carolina, but carries only 9% U.S. content, resulting in a projected 19% price increase and 8% insurance cost rise.

Which Models Are Largely Shielded

Vehicles with 60%+ domestic content face significantly smaller tariff impacts. The Honda Ridgeline (73% U.S. content, assembled in the U.S.) and Jeep Gladiator (74% U.S. content) tie for the lowest projected price increase at just 3%, with insurance cost increases of 2-3%. Dodge Durango and Tesla Model 3 match those figures.

Honda's lineup shows the widest internal range. The Accord (58% U.S. content, assembled domestically) faces a 7% price increase and 4% insurance rise. Compare that to the HR-V (30% U.S. content, assembled in Mexico), which faces 14% and 6%, respectively. Shoppers considering a Honda should check the specific model's assembly origin before purchasing.

Full-size domestic trucks remain among the least affected. The Ford F-Series (40% U.S. content) projects an 11% price increase and 5% insurance rise. Chevrolet Silverado, GMC Sierra, and RAM Pickup all fall in the 8-12% price increase range with 4-6% insurance cost increases, per Insurify. Drivers who currently own an older vehicle may find that keeping it on the road is more cost-effective than upgrading to a tariff-affected new model.

National Insurance Forecast: From 5% to 9% by Year-End

Before the tariff announcements, Insurify projected that inflation and insurer losses would push the average cost of car insurance 5% higher by the end of 2026. Following multiple rounds of tariffs, that projection temporarily spiked to 19%. After the government clarified that tariffs would not "stack" (meaning parts would not be tariffed multiple times as they cross borders), Insurify revised its estimate down to a 9% increase by year-end.

That 9% rise would push the national average annual premium from $2,319 to $2,527, a difference of $208 per year or roughly $17 per month, according to Insurify. For high-cost states like Michigan, Louisiana, and Florida, where premiums already exceed $3,000 annually, the dollar impact could be even larger.

Industry experts say the full tariff impact will take 12 to 18 months to work through the system. Insurers must first experience higher claims costs, file rate increase requests with state regulators, and receive approval before premiums change. Some carriers with strong 2025 underwriting profits have enough buffer to absorb costs short-term without immediate rate hikes.

What You Should Do Now

The Bigger Picture: Tariffs Join a Long List of Cost Pressures

Auto tariffs are not the only force pushing insurance costs upward. Rising car insurance premiums across the U.S. reflect compounding pressures from multiple directions: advanced driver-assistance technology raises repair costs by 20-30% per incident, catalytic converter thefts cost insurers $1,200+ per claim, and litigation trends continue to push up liability payouts in states like Florida and Louisiana.

Tariffs add a new, trade-policy-driven layer to that stack. The American Academy of Actuaries noted that their Casualty Practice Council is actively monitoring tariff effects and preparing an issue brief on actuarial considerations for financial disruption. Uncertainty about future tariff adjustments, including whether additional exemptions or rate changes will emerge, makes precise forecasting difficult.

For consumers, the practical takeaway remains consistent: compare quotes regularly, understand your vehicle's cost profile, and choose coverage levels that balance protection against affordability. Drivers paying above the national $2,319 average should prioritize shopping before their next renewal.

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