Economists are looking for signs of tariff-induced price hikes in inflation data, but car insurance costs are finally decreasing. The average cost of a new car is now $49,000, with tariffs expected to push it over $50,000. Car insurance costs have risen 60% in the last five years, with an average monthly premium of $213. Relief is in sight, with car insurance inflation rates dropping from 23% to 5.3%. Insurers are now raising premiums by 7.5% in 2025, a significant decrease from previous years. Factors like supply chain disruptions, digital technology, and severe weather are driving the surge in car insurance costs.

Read more at Yahoo Finance: Car insurance is falling back in line