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Car Insurance Rates Were Ready to Drop. Then Tariffs Came Along. - WSJ

1. Tariffs may delay reductions in car insurance rates due to rising claims costs. 2. Auto insurers are cautious about lower rates after recent tariff announcements. 3. Insurers predict higher annual claims costs, increasing premiums might be necessary. 4. Allstate's CEO indicated readiness to raise prices in response to inflation and tariffs. 5. Insurers face pressures from underwriting losses, prompting cautious rate filings.

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FAQ

Why Bearish?

The looming tariff threat is likely to increase costs for insurers. Historically, increased costs have pressured insurer profitability and stock prices.

How important is it?

The article discusses broader market conditions affecting pricing, crucial for ALL's strategy.

Why Long Term?

Tariff impacts on insurance pricing may persist into 2025, leading to ongoing higher premium rates.

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