Picture this: you're already wincing at the pump, grumbling over grocery bills, and now your car insurance renewal lands like a brick through your windscreen. Thanks to President Donald Trump's tariff war, that premium is about to climb higher, with the average full-coverage policy in the US set to jump from £1,805 ($2,321) to £1,954 ($2,513) by December 2025.
Announced on 2 April 2025, these 25% levies on cars and parts from Canada and Mexico, plus a 10% hike on Chinese imports, are rippling through the auto industry, jacking up repair costs and leaving insurers no choice but to pass the pain onto drivers. Trade wars, it turns out, don't just hit your wallet at the dealership: they're coming for your insurance too.
