The federal government has implied that tariffs may be imposed on auto parts imported into the United States.
Online PR News – 30-August-2018 – The federal government has implied that tariffs may be imposed on auto parts imported into the United States. These tariffs could be as high as 25 percent, and they could have significant impact on the consumer. According to experts, the tariffs could cause the cost of car repairs to increase along with premiums for car insurance in Salt Lake City and throughout the country. Car thefts could also increase for the value of car parts. ASA Insurance says this could have a detrimental effect on car buyers and those looking for affordable auto insurance in Salt Lake City.
A coalition of auto insurance providers have stated that costs could increase by $3.4 billion per year or 2.7 percent just for premiums on car insurance. Additionally, the cost of repairs could possibly increase since many parts are manufactured overseas. The concern is not only will consumers wait longer to purchase a new vehicle, they may also delay regular maintenance and repairs, which could lead to more accidents. Creed Anderson of ASA Insurance says that regular maintenance plays a key role in preventing traffic accidents. When a vehicle malfunctions, it can stall out in traffic or hit another car. Regular maintenance detects issues before they become major problems and cause an incident, he explains.
Higher prices for repairs also makes auto theft more attractive since most cars are stolen for their parts, Anderson says. An increase in car theft is another factor for higher insurance premiums. Fancy sports cars are not the main or only target for thieves as is commonly thought. Instead, pickup trucks, SUVs and sedans can be popular targets, especially in certain areas. Anderson recommends that car owners take precautions when they leave their vehicles. He says to always lock the vehicle and never leave it running where a thief can drive off quickly. If the driver has a garage, they should keep the vehicle inside. Modern security alarms and systems help deter theft as long as they are activated.
The Commerce Department is conducting research and will send a report to the White House with their analysis of the impact of tariffs on auto imports. It is estimated that consumers would pay for all the increases in costs with insurance providers raising premiums to offset the tariffs. Anderson says it is important for all policyholders to look for ways to save money on car insurance premiums. They should consider the model of vehicle they want to buy and the cost of repairs when making a purchase. They can also save money by driving defensively and avoiding situations which increase the likelihood of an accident, such as distracted driving.
While the average American car owner does not have much say in whether the tariffs will be imposed or the resulting increase in prices associated with car ownership, they can work to save money on car insurance in Salt Lake City. They can talk to an insurance agent to find the lowest premiums and the best coverage to fit their budget.
“An increase in car theft is another factor for higher insurance premiums.”