U.S. tariffs may raise cost of insurance, parts, drive up auto thefts

[dalton99a]

https://www.reuters.com/article/us-usa-autos-insurance/u-s-tariffs-may-raise-cost-of-insurance-parts-drive-up-auto-thefts-idUSKBN1K82U3

U.S. tariffs may raise cost of insurance, parts, drive up auto thefts
July 18, 2018 / 4:08 PM
David Shepardson

WASHINGTON (Reuters) - A threat by the U.S. government to impose tariffs of up to 25 percent on imported auto parts could hit consumers in unexpected ways: higher repair costs, insurance premiums and even the theft of more cars for their parts, the industry said.

A coalition of auto insurance groups said in previously unreported comments that hiking tariffs on imported auto parts by 25 percent could increase costs by 2.7 percent, or $3.4 billion annually, for personal auto insurance premiums.

Consumers will bear virtually all the higher repair costs, said the American Insurance Association, National Association of Mutual Insurance Companies and Property Casualty Insurers Association of America in comments jointly submitted to the Commerce Department.

“The imposition of tariffs could likely lead to the filing of hundreds, if not thousands, of requests for rate increases by insurers with insurance regulators across all fifty states,” the groups said.

Insurers said they might not be able to quickly get replacement parts for policyholders, “resulting in delays and increased costs.”

“Motor vehicle theft rates could well rise, as many stolen vehicles are sold for their parts,” the groups added.

[cbreezen]

1. Wahoo! DnD can make more money when they

tow and steal a person's car!

[Anon-C]

2. And drive up tow-truck rackets too - legalized auto theft.