Samia Islam, an economics professor, was recently featured in a Bankrate article titled “Insurance industry braces for rising rates as tariffs hit vehicles and parts.” The article discusses how new tariffs on imported cars and their parts are expected to drive up auto repair costs, leading insurers to raise premiums.
“Auto insurance premiums are calculated based on car part replacement costs. So, as car parts cost more, auto insurance will also cost consumers more.” Islam said. 
Furthermore, the article highlights that most Americans rely heavily on their vehicles for commuting, leaving few alternatives. With household budgets under strain, some may prioritize daily necessities over insurance payments, potentially increasing the number of uninsured drivers and, in turn, driving up overall rates. 
“Car insurance costs are not going to be the only cost rising,” she said. “Allocating a family’s limited budget among household essentials may impact a household’s ability to afford car insurance altogether.”
To manage rising premiums, the article advises consumers to compare insurance quotes, explore policy adjustments and consider usage-based insurance options.
“Rising auto insurance costs could have greater economic repercussions for the workforce, especially those households at the margin,” Islam said.
© 2025 All Rights Reserved Boise State University.

source