Michael J Clifford Insurance Services ~ With APPS Shirreff Insurance Services: How Tariffs May Affect Your Insurance Costs
Let’s Talk Tariffs – and Why They Matter to You
We get it – the word "tariff" might sound like something that only economists care about. But here’s the deal: recent government-imposed tariffs on goods from overseas—particularly on Chinese imports—are already creating ripple effects that could affect you in ways you haven’t thought about… like your insurance premiums.
At Michael J Clifford Insurance Services ~ With APPS Shirreff Insurance Services, we believe in keeping things clear, friendly, and relevant. So let’s walk through what’s happening, why it matters, and what you can do about it.
Tariffs on vehicle parts can raise the cost of auto repairs, meaning insurance companies pay more per claim—and that cost could be passed on to you.
Building materials like steel, aluminum, and electrical components are also affected, making home repairs and rebuilds more expensive.
With rising repair costs and supply shortages, insurance companies may reassess premiums and claim handling processes across the board.
How It Might Affect Your Insurance Premiums
When insurers see a spike in the cost of claims—whether it's from car accidents, wind damage, or a flooded basement—they look at ways to stay financially stable. That might include raising base premiums, tightening underwriting, or limiting coverages in high-cost sectors.
Here’s how it could impact different types of insurance:
- Auto Insurance: Delays in part availability mean longer repairs, higher labor costs, and potentially higher premiums.
- Home Insurance: Increased material and labor costs inflate the cost of home repairs and rebuilds, affecting your dwelling coverage adequacy.
- Commercial Insurance: Businesses that rely on equipment or imported goods may need to revisit their coverage limits to reflect rising replacement costs.
Quick Glance: Where Tariffs Hit the Hardest
| Product Category | Tariff Impact | Insurance Relevance |
|---|---|---|
| Auto Parts | Tariffs of up to 25% | Increased cost per claim for collision/comprehensive |
| Building Materials | Tariffs on steel, aluminum, wiring, etc. | Rising home rebuild estimates |
| Electronics | Tariffs and shipping delays | Costlier equipment replacement for businesses |
So, What Can You Do?
You don’t have to be an economist to stay ahead of these changes. Here are three practical steps we recommend:
Review your policies now. Make sure your coverage is keeping up with rising costs, especially your auto and home insurance limits.
Talk to us anytime. We’re here to help you make sense of these shifts and find coverage that fits your budget and your life.
Be proactive, not reactive. Updating your policy before a claim is far better than being underinsured after something happens.
Your Peace of Mind Is Our Priority
It’s easy to feel overwhelmed by economic shifts, global supply chains, and rising prices. But you're not alone. At Michael J Clifford Insurance Services ~ With APPS Shirreff Insurance Services, we’re watching the trends and helping our clients stay ahead—without the stress.
If you haven’t reviewed your insurance lately, now’s a smart time to do it. A quick call could save you money—or protect you from being caught short.
Give us a call at 253-858-9879.