New Tariffs on Canada Could Raise Insurance Premiums for These 8 Popular Models

In August, President Trump announced plans to impose higher tariffs on Canadian cars and car parts, which could put upward pressure on the already growing cost of auto repairs.^[1]

The plan would raise tariffs on Canadian auto imports from 25% to 50%. Insurify analysis shows that Canadian auto plants produce eight of the most popular car models in the U.S. That includes lines like the Honda Civic, Chevrolet Silverado, and Toyota RAV4 Hybrid, which have models partially or fully assembled in Canada, according to the National Highway Traffic Safety Administration (NHTSA).

Trump said the tariffs would apply to car parts and assembled cars. Vehicles assembled in Canada, such as the models above, are more likely to rely on Canadian parts, and the tariffs would make them more expensive to replace. An increase in the cost of a part means an increase in the cost of a repair, and more expensive repairs can often lead to drivers paying higher car insurance premiums.

Each state regulates its own car insurance market. When car insurance companies want to raise rates, they must get approval from state regulators. Higher losses as a result of increased repair costs serve as justification for these rate hikes. Still, the regulatory process moves slowly, so it may take months before drivers notice any potential pricing differences.

The tariff change would take effect Jan. 1, 2027. Since the end of 2025, car repair costs have grown twice as fast as overall inflation. Auto repair costs have climbed 58% in the past five years, relative to 14% in the previous five-year period, according to the Bureau of Labor Statistics.

Among these eight popular models that the tariff increase could affect, all have already seen their car insurance rates climb since the end of 2025. Seven increased faster than the national average (0.7%).

Key findings

• Eight of America’s most popular vehicles could face higher repair costs if tariffs on auto imports from Canada rise from 25% to 50%.

• All eight affected models Insurify reviewed have seen full-coverage insurance rates rise in 2026. For seven of the eight models, the average car insurance premium is rising faster than the national average, which is up 0.7% since the end of 2025.

• Five of the eight affected models have annual car insurance premiums higher than the national average ($2,238).

• Repair costs have risen rapidly in the past five years. They are up 58% since July 2021, nearly three times as much as overall inflation has risen in the same period (22%).

Eight popular vehicles could see repair costs rise as a result of heightened tariffs against Canada

1. Chevrolet Silverado

• Average annual insurance cost: $2,268 (1% above the national average)

• Change in insurance costs in 2026: 1.3%

The Chevy Silverado is one of the most popular pickup trucks in the U.S., though the carmaker assembles some of its units in Oshawa, Canada.^[2] Tariffs on these units could contribute to higher repair costs over time. Higher repair costs typically mean higher insurance premiums. And since the end of 2025, the average annual insurance premium for Silverados has risen 1.3%, nearly twice as fast as the national average increase of 0.7% through July.

2. Honda Civic

• Average annual insurance cost: $2,574 (15% above the national average)

• Change in insurance costs in 2026: 2.2%

The Honda Civic is one of the most popular cars on the road, having been the bestselling retail passenger car for a recent six-year stretch.^[3] Honda assembles some of its Civic units in Alliston, Canada, and the proposed tariffs could affect those units. The tariffs could lead to higher purchase prices and repair costs for the vehicles. Insurers often charge more for car insurance when the cost of repairing a vehicle rises, as it raises the cost of a potential claim. Full-coverage premiums on the Civic are already 15% higher than the national average, and they’ve increased 2.2% in the first seven months of 2026.

3. Honda CR-V

• Average annual insurance cost: $1,968 (12% below the national average)

• Change in insurance costs in 2026: 2.1%

Since 1986, Honda has produced more than 11 million vehicles in Alliston, Canada, including CR-V and Civic units. The site serves as the global lead plant for the sixth-generation CR-V.^[4] Tariffs on Canadian cars and car parts could raise the cost of repairs for CR-V models. In turn, insurers could raise premiums. The average annual premium for a CR-V has already risen about three times as fast as the average model since the end of 2025 (2.1% vs. 0.7%).

4. GMC Sierra

• Average annual insurance cost: $2,305 (3% above the national average)

• Change in insurance costs in 2026: 1.2%

The GMC Sierra, a full-size pickup truck, has some units that undergo assembly in Canada, according to 2026 NHTSA data.^[5] GM plans to manufacture heavy-duty, next-generation Sierras at its Oshawa site, alongside Chevy Silverado units.^[6] The GMC Sierra has seen premiums go up 1.2% since the end of 2025, and tariffs on Canadian cars and car parts could raise repair costs, leading insurers to try to raise rates down the line.

5. Toyota RAV4 Hybrid

• Average annual insurance cost: $2,132 (5% below the national average)

• Change in insurance costs in 2026: 1.5%

The Toyota RAV4 remains one of the most popular SUVs on the road. It was the bestselling non-pickup in 2025 at the same time that it transitioned to hybrid-only units.^[7] Toyota manufacturing sites in Canada have produced more than 4 million RAV4s since 2009.^[8] Higher tariffs on these vehicles and their parts could raise the cost of repairs. If repair costs rise significantly, insurers may seek to raise car insurance rates to offset higher potential costs.

6. Chrysler Pacifica

• Average annual insurance cost: $2,130 (5% below the national average)

• Change in insurance costs in 2026: 4.6%

The Chrysler Pacifica, a three-row minivan, has already seen climbing car insurance rates in 2026, with full-coverage premiums rising about six times as fast as the national average (4.6% vs. 0.7%). Tariffs on Canadian-assembled vehicles would likely put more upward pressure on rates, as insurers tend to raise premiums when cars and car parts grow more costly. Stellantis, parent company of Chrysler, saw its stock drop about 3% following the news of the renewed tariff threat.^[9]

7. Lexus RX 350

• Average annual insurance cost: $2,370 (6% above the national average)

• Change in insurance costs in 2026: 2.0%

The Lexus RX, including the RX 350, is one of the bestselling luxury vehicles in the U.S.^[10] Canadian Toyota plants have been making the RX since 2003, when it was the first Lexus vehicle produced outside of Japan.^[11] Insurance premiums for the RX 350 have already risen nearly three times as fast as the national average since the end of 2025 (2.0% vs. 0.7%). Tariffs on the RX and its parts could lead to further increases, as insurers often raise premiums in response to rising repair costs.

8. Dodge Charger BEV

• Average annual insurance cost: $3,394 (52% above the national average)

• Change in insurance costs in 2026: 0.1%

In 2024, Stellantis rolled out the Dodge Charger Daytona, marketed as the first fully electric muscle car.^[12] Also known as the Charger BEV, the car, like many EVs, has higher-than-average insurance costs, as repairs tend to be more expensive due to its more advanced components and limited availability of technicians. Dodge assembles the model at a Windsor, Canada, plant, and the BEV’s cost of repairs could rise further if the U.S. raises the tariff rate on Canadian-manufactured vehicles and parts.

Auto repair costs have risen nearly 3x as fast as inflation in recent years

The rising cost of living has garnered a lot of attention in recent years as Americans deal with higher prices for housing, gas, insurance, and other essentials. One of the fastest-growing expenses has been the cost of auto repairs, which is up 58% in the past five years. That is nearly three times as fast as the overall cost of living, which is up 22%.

Americans are starting to feel these financial pressures more acutely in 2026, according to Insurify survey data. More than half of Americans (54%) now say that car maintenance is unaffordable, up from 42% at the start of 2026. Similarly, the share of Americans saying car insurance is unaffordable has risen from 31% to 42%.

Full-coverage car insurance premiums were stable in 2021, when traffic congestion was lower during the pandemic. But by April 2023, insurance costs started to outpace inflation. Drivers began engaging in riskier driving, as they did during the COVID-19 pandemic when roads were more open. But in 2023, traffic levels were rising, due in part to the return of the office commute. As a result, accident rates increased, leading to more insurance claims.

Around the same time, lingering supply chain snags and labor shortages from the pandemic resulted in more expensive parts and repairs. Insurers, faced with increases in the cost and frequency of accidents, responded by rapidly raising rates. They reached a national peak in August of 2024 but have since fallen as claim frequency has declined. Insurify projects rates will rise about 1% in 2026.

Climbing repair costs could contribute to bigger premium hikes in 2027. Changes in insurance rates often take months to go into effect, lagging behind real-world cost trends. In 2026, premiums have been relatively flat, up 0.7% since the start of the year, but repair costs keep increasing, up 5.2%. Insurers may raise premiums to catch up to those repair costs in 2027. At the same time, bodily injury claims, generally the most costly type of claim, are becoming more frequent and more expensive for insurers.^[13]

Tips: How drivers can avoid overpaying for car insurance

Tariffs aside, car insurance rates have jumped 44% since July 2021, with the average annual full-coverage premium climbing from $1,553 to $2,238. But informed drivers can avoid overpaying for insurance if they drive safely, shop around for quotes, and take advantage of discounts.

A safe driving record is one of the most important factors in a driver’s premium. A single at-fault accident, on average, results in a 34% increase in premiums. That markup rises to 44% following a DUI. Practicing safe, defensive driving can limit the chances of an accident. Doing so can prevent insurers from viewing a policyholder as a greater financial risk, reducing their urgency to raise premiums.

Comparing car insurance quotes across multiple companies is another step that can yield significant savings for drivers in a handful of minutes. Insurify data shows that some insurers charge average monthly premiums twice as high as other companies for similar policies. It’s worth remembering that pricing is highly individualized, so one insurer may see a driver as less of a liability than another, leading to lower premiums.

Drivers can still save money on car insurance after choosing a policy by applying all relevant discounts. Insurers like Farmers and GEICO have as many as 23 individual discounts drivers may be eligible for. Some of these discounts depend on the type of vehicle, the type of driving record, and even payment method. Drivers should carefully review the discounts their insurer makes available and ask an agent if they could be eligible for any not already applied to the policy.

Methodology

Insurify’s data scientists examined more than 250 million rates in its proprietary database, quoted via integrations with partnering insurance companies. Driver applications originate from all 50 states and Washington, D.C., and include information on the exact coverage specifications of each driver’s quoted policies.

The premiums in this report reflect the median insurance cost for drivers between the ages of 20 and 70 with clean driving records and average or better credit, unless otherwise noted. Yearly prices in this report are two-year rolling medians to manage extreme market volatility over the past few years.

Full-coverage premiums correspond to policies with bodily injury limits between state-minimum requirements and $50,000 per person, $100,000 per accident; property damage coverage between $10,000 and $50,000; and comprehensive and collision coverage with deductibles of $1,000.

Insurify sourced its list of vehicles manufactured in Canada from the NHTSA’s Part 583 American Automobile Labeling Act Reports. Insurify sourced its repair cost data from the U.S. Bureau of Labor Statistics’ Consumer Price Index.