Former President Donald Trump recently made a bold promise: if he's elected president again, he'll cut your auto insurance rates in half. But not everyone is buying it and many wonder how he plans to make that happen.
Trump's claim came via a social media post where he said, "Your Automobile Insurance is up 73% – VOTE FOR 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 increasing. However, many experts are scratching their heads over where this 73% figure came from since it doesn't match any recent data.
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Your Automobile Insurance is up 73% — VOTE FOR 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 although rates have gone up, they haven’t increased as much as Trump has claimed. Hartwig claims that while the 73% increase is consistent with September 2016 rates, it does not reflect current trends. In actuality, rates have increased by 16.5% in the last year – a significant increase but nowhere near 73%.
Hartwig and others stress 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'd have to get 50 state insurance commissioners to agree to his plan – a tall order.
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Insurance industry experts say that capping rates would hurt consumers in the long run, as Trump suggests. If insurers were forced to lower rates drastically, they'd likely stop offering coverage altogether because they couldn't afford the costs.
On X and other social media websites, many people are skeptical about Trump's promise to cut auto insurance rates in half, wondering how he could possibly make such a big change happen.
One user mocked the feasibility of Trump's plan by tweeting, "This is awesome! We can't wait to see your plan to accomplish this in your first week back on the job!" Others highlighted the irony of his proposal with a comment that read, "Sounds like communism!" given Trump's past criticism of similar ideas from Democrats.
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Trump's promise has led some to compare his plan to government price controls, which are widely criticized for creating more problems than they solve. When Kamala Harris suggested capping prices in grocery stores, Trump himself bashed her proposals as "socialist" or "communist."
On the other side, Suze Orman, a well-known financial expert, offered some practical advice recently. She suggested that consumers shop around for better deals, raise 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 Automobile Insurance In Half. People Push Back And Ask Him If He'll Use Government Price Controls To Do It originally appeared on Benzinga.com
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