The study says insurers generally have to submit requests to state regulators and explain how they’re spending more money on claims before they raise rates.
TAMPA, Fla. — Florida residents could see a bigger price tag looking for a new vehicle as the state ranks among the top five most affected by recently implemented U.S. auto tariffs, a new study says.
Insurance comparison shopping website Insurify says Florida is the fourth for states most impacted by auto-relayed tariffs.
The study explains that car prices could increase nationwide could increase by around 15%, with insurance costs possibly rising by 6%. The website also explains that insurance prices are already projected to rise to 9% by the end of the year before tariffs.
“Insurers are bracing for more expensive claims as tariffs raise costs for auto parts,” Mallory Mooney, director of sales and service at Insurify said in a statement. “Tariffs could increase car insurance costs for all models, with new models facing larger increases, as more expensive cars are generally more costly to insure.”
Tariffs impact the cost of parts assembled outside the U.S., assembles 48% of new vehicle models in the country. Countries that assemble vehicles outside the U.S. include Mexico (19%), South Korea (12%) and Japan (8%).
For Florida, the impact of tariffs is projected to raise the annual cost at the end of 2025 from $3,484 to $3,610, 14% year-over-year cost increase.
Insurify also explains that the most popular carmaker in Florida is Toyota, which is also expected to have a 14% sales price increase and a 6% increase for insurance costs on new models.
The only other states with higher cost increases from the tariffs are:
- Maryland ($4,255 to $4,418)
- New York ($4,183 to $4,335)
- South Carolina ($3,603 to $3,738)
“It will take time for tariff-related costs to show up in the typical driver’s car insurance rates,” the study reads. “At the earliest, drivers might notice these costs around the end of 2025.”
In spite of potential increases, Insurify says insurers generally have to submit requests to state regulators and explain how they’re spending more money on claims before they raise rates due to tariffs.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.