BIRMINGHAM, Ala. — Proposed tariffs on Canada, Mexico, and China could soon lead to higher auto insurance costs for drivers, as tariffs drive up the cost of replacement parts, as well as new and used cars. This comes as rates have already surged 19% since 2023 and 78% over the past decade.

Beth Swanson, a licensed insurance agent with The Zebra, an insurance comparison site, said shopping around can help. “It’s easy to stick with a company you’ve had for a long time and just go with it, especially if it’s set up on auto pay, but that’s when you can save,” Swanson said. “You might be surprised if you haven’t shopped around in a while what other discounts you can qualify for from a different company.”

Swanson explained that the ability of one insurance agency to offer a lower rate than another “really just depends… their resources as a business, the fees that they get from premiums and things of that nature and really it comes down to your individual factors.”

Another option to lower rates is to raise your deductible. “If you just want a smaller monthly payment, you can raise your deductible, which will then make your monthly payment smaller,” Swanson said. “Again, there are ramifications if you make a claim down the line; you’ll have to pay more out of pocket.”

For those who own their vehicle, Swanson suggested considering dropping comprehensive and collision coverage. “If you have comprehensive coverage but you have a lower value vehicle, if you have an older car worth less than about $4,000, you might consider dropping your comprehensive and collision,” she said. “You could just stick with state liability coverage, and that would save you quite a bit of money.” However, without comprehensive or collision coverage, you’ll pay out of pocket for accident damage or weather-related damage.

Swanson also advised not to forget to ask for discounts and bundle coverage. “Even if you’re not sure if you might qualify for them, it’s worth asking your agent or your insurance company,” she said. “If you’re shopping around, ask new agencies what they offer as far as discounts. If you have multiple vehicles, if you have homes and vehicles, make sure you’re bundling those as well. That’s an easy way to save 5 to 10 percent off the top.”

Additionally, when it comes to liability insurance, most states have a minimum requirement amount. Not going above that amount could save you money as well.