- \n
- 75% of respondents say car insurance is already unaffordable.<\/li>\n\n\n\n
- Monthly premiums have increased by 60% since 2020, according to the Consumer Price Index.<\/li>\n<\/ul>\n\n\n\n
Cost-cutting behavior is rising<\/strong><\/p>\n\n\n\n
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- Drivers that chose a higher deductible to lower monthly car insurance payments rose from 21% in August 2023 to 31% in April 2025.<\/li>\n\n\n\n
- The percent of drivers who have lowered their level of insurance coverage to be able to afford it rose from 23% to 29.1% in the same period. <\/li>\n\n\n\n
- 85% of drivers said they cut spending on entertainment, dining, vacations or groceries in response to rising car insurance costs in 2025.<\/li>\n<\/ul>\n\n\n\n
Tariffs are expected to hit wallets further<\/strong><\/p>\n\n\n\n
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- 64% of drivers said they believed tariffs will raise car insurance prices.<\/li>\n<\/ul>\n\n\n\n
Tariffs are accelerating and distorting car-buying plans<\/strong><\/p>\n\n\n\n
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- 45% said they plan to buy or lease a car in 2025. Among them, 51% say they\u2019ll buy sooner because of tariffs and 25% say they\u2019ll delay to wait out the policy changes. Younger and higher-income drivers accelerate car-buying plans.<\/li>\n<\/ul>\n\n\n\n
Nearly two-thirds say tariffs will raise the prices of car insurance in the future<\/h2>\n\n\n\n
Car insurance premiums have nearly doubled over the past five years, taking up a much larger share of monthly household expenses. While the 6.2% increase in April 2025 marks the slowest year-over-year rise in nearly three years, insurance remains far more expensive than pre-pandemic levels and continues to strain family budgets.<\/p>\n\n\n\n
Three out of four drivers believe car insurance is becoming unaffordable. Many are taking on greater financial risk to cut monthly costs: 31% of respondents said they opted for a higher deductible during Jerry\u2019s April survey, yet over a third of them said they couldn’t afford to pay that deductible if needed today. <\/p>\n\n\n\n
Another 30% bought less coverage, and nearly 75% of those drivers acknowledged they now carry less protection than they believe they need. <\/p>\n\n\n\n
These cost-cutting measures have surged over time \u2014 21% chose higher deductibles in August 2023, compared to 31% today; and those who have reduced their coverage rose from 23% to 29.1% in the same period.<\/p>\n\n\n\n
Two-thirds of those surveyed said that tariffs will increase car insurance prices in the future.<\/p>\n\n\n\n
![\"Chart](\"https:\/\/jerry.ai\/wp-content\/uploads\/2025\/06\/Cost-cutting-auto-insurance-decisions-over-time-2-1024x826.png\")
<\/figure>\n\n\n\n
Lower-income and younger drivers are at the forefront of cost-cutting decisions, like raising deductibles and reducing coverage. These groups are also the most likely to say insurance is unaffordable \u2014 clear signs they\u2019re bearing the brunt of rising car ownership costs.
<\/p>\n\n\n\nAs car insurance prices rise, consumers said they\u2019re cutting back on expenses like entertainment and dining out<\/h3>\n\n\n\n
85% said they\u2019ve been cutting back on entertainment, eating out, family vacations and other costs as car insurance costs rise.<\/p>\n\n\n\n
![\"Chart](\"https:\/\/jerry.ai\/wp-content\/uploads\/2025\/06\/Rising-insurance-costs-are-eating-into-dining-and-entertainment-budgets-1-1024x735.png\")
<\/figure>\n\n\n\nA majority (57%) said that tariffs will also impact their daily budgets, forcing them to spend more on groceries and delay major purchases. <\/strong>Gen Z drivers \u2014 28.8% of whom say they may delay major purchases like cars or appliances \u2014 are rethinking their spending amid tariff concerns, more than any other generation. Meanwhile, 39.9% of baby boomers say they expect to spend more on essentials like groceries and gas because of the tariffs.<\/p>\n\n\n\n
![\"Chart](\"https:\/\/jerry.ai\/wp-content\/uploads\/2025\/06\/Different-generations-reassess-plans-in-response-to-tariff-related-price-hikes-1024x655.png\")
<\/figure>\n\n\n\nTariffs jolt buyers into action: Some race to buy, others back out
<\/h2>\n\n\n\nDrivers still show a strong appetite for buying new cars, but respondents say tariffs will influence the timing of their purchases and the brand they may choose to buy, according to Jerry\u2019s most recent survey in April.<\/p>\n\n\n\n
![\"Chart](\"https:\/\/jerry.ai\/wp-content\/uploads\/2025\/06\/Timing-shift-among-2025-car-buyers-due-to-tariffs-1-1024x939.png\")
<\/figure>\n\n\n\nYounger and higher-income drivers to shift car-buying plans<\/h3>\n\n\n\n
Of the 45% who said they\u2019d like to buy a car in 2025, more young drivers and high-income earners say they\u2019d like to lock in prices before tariff-related hikes work their way into the system and raise car prices.<\/p>\n\n\n\n
![\"chart](\"https:\/\/jerry.ai\/wp-content\/uploads\/2025\/06\/age-buying-decision.png\")
<\/figure>\n\n\n\n![\"chart](\"https:\/\/jerry.ai\/wp-content\/uploads\/2025\/06\/higher-income-buying-decision.png\")
<\/figure>\n\n\n\nLast year\u2019s car buyers dodged tariffs<\/h3>\n\n\n\n
Among those who bought a car in the last 12 months, 43% said they were glad that they bought before car prices increased. More than a quarter said they were glad that they purchased American brands such as Ford, Tesla and Chevrolet \u2014 automakers that consumers believe will be among the least affected by tariffs.<\/p>\n\n\n\n
Ford, Chevrolet, GMC and Tesla seen as tariff winners<\/h3>\n\n\n\n
More than half of all “winner” votes from respondents went to just four brands \u2014 Ford, Chevrolet, GMC, and Tesla \u2014 indicating that these American automakers are most widely perceived to benefit from the tariffs.<\/p>\n\n\n\n
![\"Chart](\"https:\/\/jerry.ai\/wp-content\/uploads\/2025\/06\/unnamed-1024x826.png\")
<\/figure>\n\n\n\nA Jerry analysis<\/a> of 500 car models confirms some of what the users think: 24 car models \u2014 including all current Teslas and several trims from Jeep, Ram and Volkswagen \u2014 face zero tariff impact under the new rules. Another 49 models, including the Ford Maverick, Nissan Versa and Kia EV6 are estimated to incur surcharges no higher than 5%. Our car tariff price estimator<\/a> tool shows how much tariffs could impact different makes and models.<\/p>\n\n\n\n
Automakers that assemble vehicles in North America and source parts locally are better positioned to withstand tariffs, regardless of whether the brand is technically American or foreign.<\/p>\n\n\n\n
Tariffs fuel consumer anxiety<\/h3>\n\n\n\n
A majority of American drivers feel anxious (34%) about the economy or angry (17%) about the new and proposed tariffs. Women, young adults and middle and higher income drivers feel more angry and anxious. Gen Z drivers and middle- and higher-income brackets said tariffs have caused them to feel more angry and anxious.<\/p>\n\n\n\n
![\"Chart](\"https:\/\/jerry.ai\/wp-content\/uploads\/2025\/06\/tariff-by-age-2-1024x662.png\")
<\/figure>\n\n\n\n![\"Chart](\"https:\/\/jerry.ai\/wp-content\/uploads\/2025\/06\/tariff-by-income-2-1024x662.png\")
<\/figure>\n\n\n\nMethodology<\/h2>\n\n\n\n
Jerry\u2019s April 2025 consumer sentiment study is based on data from a nationally representative survey of 1,000 people conducted in April 2025 using a platform and audience from Pollfish. All respondents own or lease a vehicle, drive at least once per week, and are responsible for paying for car insurance for themselves and\/or their family. Respondents were blended for age, gender, and region using census weights. More information about Pollfish and its audiences can be found on its website<\/a>. Inflation figures are based on data from the Bureau of Labor Statistics<\/a>.
<\/p>\n\n\n\n\nExpert-driven. Built for you.<\/div>\n\n\n\n
- 45% said they plan to buy or lease a car in 2025. Among them, 51% say they\u2019ll buy sooner because of tariffs and 25% say they\u2019ll delay to wait out the policy changes. Younger and higher-income drivers accelerate car-buying plans.<\/li>\n<\/ul>\n\n\n\n
- 64% of drivers said they believed tariffs will raise car insurance prices.<\/li>\n<\/ul>\n\n\n\n