Xavier Sabastian, Way.com
High tariffs – affecting not only governments and businesses, but also places where consumers hurt – their wallets. High tariffs are particularly affected by the automotive industry as they increase the costs of motor parts, maintenance and even insurance claims. High tariffs can cause daily spending to skyrocket, whether you own a car, have insurance, or sometimes rent it.
But what is the exact impact of these tariff increases? More importantly, how can you protect your money from unnecessary spending? Way.com looks at how the automotive business is affected by high tariffs in a variety of ways, and what it can do to avoid higher costs.
Car repair: the first thing to feel the heat
Cars are not luxury, but a need for many individuals. However, as the prices of imported parts increase, repair costs begin to rise.
Why does repair costs increase?
Many automotive parts are produced overseas.
The cost of these components increases as import duties rise. As a result, auto repair companies charge more clients.
Increased cost of replacement parts: If a fender that was costing $200, costs $300 due to customs duties, the additional fee will ultimately reach you. Limited availability: Mechanics may need to wait longer for the item to arrive if they find more expensive domestic alternatives or if there are fewer parts imported due to financial constraints. Increased labor costs: Mechanics may charge extra for time and skill, as they have to deal with more expensive parts and delays.
Car owners are immediately affected by price increases. This is because a basic bumper replacement that cost $800 could cost up to $1,000.
Car Parts: Supply Chain Nightmare
The cost of automotive components has not increased. The supply chain breakdown leaves customers with both shortages and high prices.
Which car components are at worst hit?
Some of the most typically influenced works are:
Brake pads and rotors: Most are produced in China, Mexico and Europe. Engine and Transmission: A large and expensive part that is much more expensive under high tariffs. Electronic Components: Vehicles rely on imported semiconductors and chips. These are extremely vulnerable to trade barriers.
New vs. parts used: difficult decision
As new car parts become more and more expensive, most car owners choose second-hand or aftermarket parts. However, you may not always have access to used parts, and aftermarket parts may not be of the same quality.
Insurance claims: higher payments, higher premiums
Insurance companies realize that repairs will be more expensive. When they pay more for the claim, they inevitably raise premiums.
How insurance companies respond
Increased premiums: Insurers will increase policy premiums to compensate for increased repair costs. Lower Payments: Insurers can try to save money by making lower payments on claims. Increased billing time: Insurers may take longer to approve claims to reassessment costs to address increased costs.
result? The owner of the vehicle will not only pay for repairs, but also the very insurance contracts that are supposed to cover them.
Car Rental: Hidden costs spike
Whether you need to rent after an accident, you may be surprised at the inflated costs for a weekend escape. The implications of exorbitant tariffs drip down on rental companies and force them to modify their pricing structure.
Why car rental prices are rising
Increased vehicle acquisition costs: Car rental companies buy large quantities of cars, mostly relying on imports. More Costly Repairs and Parts: Costly repairs and replacement parts can keep your rental fleet more expensive. Supply Chain Disruption: With fewer cars available and production lag, prices are even higher due to increased demand.
Previously, a $50 per day rental would cost $75 a day, while short-term rentals cost more.
The impact on average car owners
All of these bring the perfect storm for the average driver. Let’s analyze what that means for the average car owner:
Replacing brake pads
Previous Cost (Estimated): $250 after Turfy (Estimated): $350+
Insurance premium (annual)
Previous Cost (Estimated): Post-invoiced Cost $1,200 (Estimated): $1,500+
Rental car (per day)
Previous Cost (Estimated): $50 After Cost (Estimated): $75+
Bumper repair
Previous Cost (Estimated): $800 after Turffe (Estimated): $1,000 or more
For those who run into various car costs annually, it can amount to more than $3,000 more than their spending each year.
How do you protect yourself?
Although they cannot control trade agreements or government policies, certain measures can be taken to alleviate the financial burden.
Compare repair quotes
Various stores have different sourcing strategies for auto parts. Requesting quotes from multiple locations can lead to the best bargains.
Use alternative parts
Renovated aftermarket parts can be a cheaper alternative to the original equipment manufacturer or OEM parts that are costly.
Rethinking your insurance policy
Comparing car insurance rates with insurance carrier shopping, you can reduce premiums even if prices rise.
Use ride sharing or public transport
If car rentals are becoming too expensive, employing public transport and riding short-term requirements will prevent you from spending extra money.
Use the regular savings app for transportation
One of the best ways to combat increased shipping costs is intelligent financial planning. Certain apps allow users to save money on everything from parking and insurance to gas and maintenance. By streamlining your daily expenses, you can save as much as $3,000 a year, and have a concrete impact on your budget.
Final Thoughts
High tariffs create a ripple effect that touches almost everything from car maintenance to insurance premiums to renting costs. You may feel a pinch in the form of sticker shocks, but you can maintain your costs by being proactive and identifying intelligent ways of saving.
By being proactive – perhaps comparing car insurance costs, browsing alternative car parts, and using financial tools will help protect your finances while lining up vehicle costs.
This story was created by Way.com and reviewed and distributed by Stacker.
Original issue: March 21, 2025, 3:35pm EDT
