Frank Pallone, New Jersey State Representative | x.com
Frank Pallone, a representative for New Jersey’s District 6, said that New Jersey drivers can expect higher auto insurance bills due to tariffs introduced under President Donald Trump. Pallone made the statement on X on March 13.
"Your auto insurance bill is about to get hit with Trump's tariffs," said Pallone, New Jersey State Representative.
Auto insurance premiums could rise by 8% in 2025 if the proposed 25% tariffs on imports from Canada and Mexico take effect. According to NMBC Philadelphia, even without the tariffs, premiums are expected to increase by 5%, driven in part by already rising repair and replacement costs. The proposed trade policies will further strain drivers’ wallets as insurers pass on the higher costs of cars and parts.
Insurance Business reports that lawsuit abuse is driving up auto insurance premiums by increasing the cost and complexity of settling claims, often through tactics like inflated settlements and misuse of legal tools such as Assignment of Benefits. Predatory "billboard attorneys" and unregulated third-party litigation funding contribute to higher payouts, which insurers pass on to consumers. In states like Louisiana, this can raise annual insurance costs by more than $1,100, making coverage less affordable for drivers.
New Jersey 101.5 reports that New Jersey drivers are facing a steep 17.2% increase in car insurance premiums in 2025, pushing the average annual cost to nearly $2,400, the highest on record. This increase follows consecutive hikes of 6% in 2023 and double-digit increases in 2024, marking a multi-year trend of rising costs for policyholders.
According to the House's website, Pallone is serving his 18th full term representing New Jersey’s 6th Congressional District, which includes parts of Middlesex and Monmouth counties, such as New Brunswick, Asbury Park, and Perth Amboy. A senior leader in the House, he is the top Democrat on the Energy and Commerce Committee.
Alerts Sign-up