Economists are busy hunting for signs of tariff-induced price hikes in the monthly inflation data. They may be overlooking some good news, which is that a surge in the cost of car insurance is finally abating.
The cost of owning a car has soared during the last few years, with drivers absorbing hits from all angles. The average cost of a new car is now $49,000, and Trump’s tariffs will likely push that well above $50,000. As new cars get costlier, so do used cars. Fancy new technology and other factors, meanwhile, have raised the cost of parts, repairs, and maintenance.
