Former President Donald Trump recently made a bold promise: if he’s re-elected, he’ll cut your auto insurance premiums in half. But not everyone believes it, and many are wondering how he plans to pull it off.
Trump’s claim came in a social media post in which he said, “Your car insurance just went up 73% – VOTE TRUMP, I’LL CUT THAT NUMBER IN HALF!”
The idea of saving so much money on something as essential as car insurance sounds great, especially with the cost of living rising. However, many experts are left scratching their heads as to where this 73% figure comes from, as it doesn’t match recent data.
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Your car insurance went up 73%. VOTE TRUMP, I’LL CUT THAT NUMBER IN HALF!
— Donald J. Trump (@realDonaldTrump) September 17, 2024
Economist and insurance specialist Robert Hartwig told Insurance Journal that while rates have gone up, they haven’t gone up as much as Trump claims. Hartwig claims that while the 73% increase is in line with September 2016 rates, it doesn’t reflect current trends. In fact, rates have gone up 16.5% over the past year — a significant increase, but nowhere near 73%.
Hartwig and others point out that insurance rates are regulated at the state level, not by the federal government. This means that even if Trump were president, he wouldn’t be able to cut insurance rates in half. Instead, he would have to get 50 state insurance commissioners to sign off on his plan — a tall order.
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Insurance industry experts say capping rates will hurt consumers in the long run, as Trump suggests. If insurers were forced to cut rates drastically, they would likely stop offering coverage altogether because they could no longer afford the costs.
On X and other social media, many people are skeptical of Trump’s promise to halve auto insurance premiums, wondering how he can pull off such a big change.
One user mocked the feasibility of Trump’s plan, tweeting, “This is amazing! We can’t wait to see how you pull this off in your first week back on the job!” Others noted the irony of his proposal, with one comment reading, “Sounds like communism!” given Trump’s past criticism of similar ideas from Democrats.
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Trump’s pledge has led some to compare his plan to government price controls, which have been widely criticized for creating more problems than they solve. When Kamala Harris proposed capping prices in grocery stores, Trump himself criticized her proposals as “socialist” or “communist.”
On the other hand, Suze Orman, a well-known financial expert, recently offered some practical advice. She suggested that consumers shop around for better deals, increase their deductibles if they have enough savings, or even consider owning fewer cars.
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This article Donald Trump Says He’ll Cut Your Auto Insurance in Half. People Are Pushing Back, Asking Him If He’ll Use Government Price Controls to Do It originally appeared on Benzinga.com
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