Latest news with #GraceArnold
CBS News
29-05-2025
- Business
- CBS News
Consumers feeling the pinch of rising insurance costs
Consumers have seen insurance rates climb over the past few years, and those increases are expected to continue in part due to President Trump's tariffs. In 2024, the average homeowner's insurance bill increased 15%, adding an average of $500 per year to people's bills. Car insurance costs have risen 55%, adding an average of another $500 per year. It comes as Minnesota is experiencing more powerful and frequent hailstorms. In 2024, the state experienced 190 hailstorms — three times more than the national average. An August 2023 hailstorm in Minnesota caused $1 billion in damages. A new factors driving up insurance rates are Mr. Trump's tariffs, with replacement parts for a damaged older home or car are significantly more expensive. "So whether that is a repair or, you know, part of your house that needs to come in from elsewhere, it's all going to get impacted by the tariffs," said Minnesota Department of Commerce Commissioner Grace Arnold. As a result, consumers are choosing cheaper policies that can cost them in the long run. Check your deductible: many have been changed from flat rates to percentages of the value of a home or car. Another costly surprise for consumers is realizing, after the damages, they have an actual value policy instead of a replacement value policy. "I will give the example of my husband. He got rear-ended. He had a bike rack on the back. When he parked the bike rack, it was like $1000," said Arnold. "The insurance company paid $250 because it was five or six years old. The most valuable part of that bike rack had depreciated over time."
Yahoo
29-03-2025
- Automotive
- Yahoo
Tariffs could make cars more expensive, MN Commerce Dept. warns
The Brief The Minnesota Department of Commerce said federal tariffs could raise the price of vehicles. State officials also say tariffs would increase the costs of repairs and insurance claims. Tariffs on car parts from Canada, Mexico and China are expected to take effect in April 2025. ST. PAUL, Minn. (FOX 9) - Impending tariffs are expected to raise the cost of purchasing a vehicle, as well as repairs and insurance premiums, according to officials with the Minnesota Commerce Department. Big picture view A news release from the Minnesota Department of Commerce said tariffs on automotive parts from Canada, Mexico and China are set to go into effect in April 2025. Data from the American Property Casualty Insurance Association (APCIA) shows that nearly 60% of auto replacement parts come from these countries. READ MORE: Trump to unveil tariff plans on April 2: What to know This will also result in higher auto insurance premiums and repair costs, according to factors cited by the Insurance Federation of Minnesota. The APCIA adds that as auto insurance correlates with vehicle prices, insuring a car could become more expensive if insurance companies face higher claim payouts because of increased repair and replacement costs. The Minnesota Department of Commerces said consumers could face higher premiums when they renew their policies, which typically happens every six to 12 months. What they're saying Minnesota Department of Commerce Commissioner Grace Arnold released a statement saying, "U.S. tariffs, whether enacted or threatened, could increase the cost of maintaining and insuring your car. This is a man-made crisis that will make it more expensive for everyday Minnesotans to drive." Arnold continued by saying, "Minnesota's auto insurance market is competitive, allowing consumers to shop for lower premiums. However, insurance markets depend on stability and predictability to offer consumers comprehensive insurance at affordable prices. These tariffs will likely make it more expensive for Minnesotans to get to work, take their kids to childcare, and drive across our state." What you can do State officials say residents should stay informed about the developments and review their insurance policies. Minnesotans should also consider how possible increases in vehicle prices and insurance could impact their personal budgets. The Source Information for this article came from a news release sent by the Minnesota Department of Commerce based on information from the Insurance Federation of Minnesota and the American Property Casualty Insurance Association.
