U.S. Representative Josh Gottheimer, who represents New Jersey's 5th congressional district, said that President Trump's proposed tariffs would lead to increased car insurance rates in New Jersey, as they would not reduce costs for families. He made this statement on the social media platform X on March 16.
"Tariffs do nothing to lower costs for hardworking Jersey families," said Gottheimer, United States Representative. "This is just another unnecessary hit to your pocketbooks and more chaos."
According to Yahoo, tariffs on auto parts from Canada and Mexico are anticipated to raise car insurance costs. Insurify estimates an 8% increase in full-coverage premiums by the end of the year. This rise is attributed to higher replacement part costs, with approximately 32% of U.S. auto parts imported from these countries and about 60% of replacement parts used in repairs coming from Mexico, Canada, and China.
New Jersey’s average annual car insurance cost stands at $2,938 for full coverage and $1,272 for minimum coverage. These figures are 10% higher than the national average for full coverage and 59% higher for minimum coverage. Young male drivers face particularly high costs; an 18-year-old with a policy averages $8,396 annually for full coverage. Bankrate reports that shopping around and maintaining a clean record can help lower these expenses.
Tariffs are not the only factor contributing to high prices. A survey conducted by APCIA and Munich Re US found that 69% of Americans believe legal tactics such as third-party litigation funding and jury anchoring contribute to rising insurance costs. Furthermore, 77% view foreign investment in lawsuits as a security risk, while 67% support restricting lawyer advertising to curb excessive lawsuits. With litigation abuse costing the U.S. economy $529 billion annually, experts advocate for legal reforms to reduce consumer costs and restore fairness.
According to the House's website, Gottheimer represents New Jersey’s 5th Congressional District and serves on the House Intelligence and Financial Services Committees. A bipartisan leader, he co-founded the Problem Solvers Caucus and works across party lines on issues including taxes, healthcare, national security, and infrastructure.
