Top officials from the Property Casualty Insurers Association of America (PCI) says tariffs could have a negative impact on the automobile insurance industry.
David Snyder, vice president, policy, research, and international at PCI, told the National Association of Insurance Commissioners’ (NAIC) last week that tariffs could increase costs for consumers.
“Tariffs on auto parts could have a significant adverse economic impact on consumers, automobile repair providers, business, and insurers,” Snyder said. “Based on data from the U.S. Bureau of Economic Analysis, PCI estimates that the proposed tariffs on auto parts could increase auto repair claims costs by $3.4 billion and ultimately be passed onto consumers through increased insurance costs. In addition, a 10 percent tariff has been imposed on Chinese imports, including auto parts and many other products, which is expected to increase to 25 percent in January. These tariffs are already increasing the price of replacement auto glass, primarily replacement windshields that are frequently damaged by rocks and road debris.”
He told the insurance commissioners that the effects of the tariffs go beyond just insurance costs.
“The proposed tariffs could potentially disrupt the supply of parts and impede consumers from promptly repairing their vehicles and getting back on the road after a crash,” Snyder added.
PCI, which represents nearly 1,000 member companies in the broadest cross section of insurers of any national trade association. The organization is urging NAIC and insurance commissioners to oppose, reduce or remove tariffs that increase insurance costs. PCI is also encouraging commissioners to inform the public and other policymakers on the effects of these tariffs.