An analysis of how tariffs on imported auto parts affect insurance costs found that 25 percent import duties on after-market parts are cascading through the repair and insurance system, increasing total loss declarations, extending repair timelines, and affecting the economics of towing and vehicle storage, according to Aftermarket Matters. The analysis documented how tariff-driven cost increases affect every link in the collision repair chain.
Operator takeaway
Tariffs on auto parts increase total loss declarations — which means more vehicles going to auction from your yard instead of being repaired and picked up. Adjust your lien sale procedures for higher volume.