Insurance Costs Exploded During the Biden Years
American drivers saw auto insurance premiums surge under former President Joe Biden.
According to figures cited by Trump, premiums jumped more than 20 percent during one year of Biden’s presidency alone, marking one of the largest annual increases in recent memory. For many families, that translated into hundreds of dollars in additional expenses every year.
While inflation, supply chain problems, and rising vehicle repair costs all played a role, Trump and his allies say another factor has been largely ignored by the mainstream press: the unprecedented number of illegal immigrants entering the country.
More than 13 million migrants crossed the border during Biden’s term, according to estimates frequently cited by critics of the administration’s immigration policies. Many eventually found themselves on American roads, often without insurance coverage.
Supporters of stronger border enforcement argue that the burden did not disappear. Instead, they say the costs were transferred directly to law-abiding drivers through higher premiums.
The Uninsured Driver Problem Keeps Growing
Data from the Insurance Research Council paints a troubling picture.
By 2023, approximately 33.4 percent of drivers were either uninsured or underinsured. That means roughly one out of every three motorists lacked adequate coverage in the event of a crash.
The figure represents a substantial increase compared to previous years and has become a growing concern throughout the insurance industry.
When an uninsured driver causes an accident, insurance companies often absorb the losses through claims paid under uninsured motorist coverage. Those costs are eventually passed along to customers through higher premiums.
Critics of Biden’s border policies argue that the influx of migrants, many of whom arrived without established financial resources or insurance coverage, contributed significantly to the problem.
Trump Points to New Numbers
Trump recently highlighted data on Truth Social showing what he described as a dramatic turnaround.
According to the figures he shared, auto insurance rates increased by 20.6 percent during Biden’s third year in office.
By contrast, rate increases during 2025 reportedly slowed to just 0.5 percent following the return of stricter immigration enforcement.
Even more notably, Trump pointed to data showing insurance rates falling by 2.3 percent so far in 2026.
Supporters of the administration view the numbers as evidence that policies matter.
“The border closes. The premiums fall.”
While economists continue debating the exact causes behind insurance pricing trends, Trump argues that the timing is impossible to ignore.
Academic Research Adds Fuel to the Debate
The issue has also attracted attention from researchers.
A study published in the Journal of Policy Analysis and Management examined the impact of granting driver’s licenses to illegal immigrants. Researchers found an increase in fatal crashes after such policies were implemented, with effects particularly noticeable in areas with large illegal immigrant populations.
The study estimated nearly a five percent increase in fatal accidents, amounting to roughly half an additional fatal crash per county each year.
Research conducted by scholar Ruinan Zhao similarly found evidence suggesting that licensing policies for illegal immigrants may influence driving behavior and accident rates.
Supporters of Trump’s immigration agenda argue that these findings help explain why insurance companies faced mounting costs during years of record border crossings.
Media Pushes Back
Not everyone agrees with Trump’s assessment.
The Associated Press recently published a fact-check arguing that pandemic-related factors were largely responsible for rising insurance premiums.
According to that explanation, supply chain disruptions, labor shortages, vehicle repair costs, and inflation created a perfect storm that drove rates higher across the industry.
However, critics argue that the timeline raises questions.
COVID-related disruptions began in 2020, yet insurance costs continued rising well after the immediate effects of the pandemic had begun to fade. They also point to studies showing links between uninsured driver rates and areas with large populations of illegal immigrants.
For many Americans, the debate is not taking place in academic journals or political press releases.
It is happening when renewal notices arrive in the mail.
A Political Issue That Hits Every Household
Border security is often discussed in terms of national security, crime, or immigration law.
But Trump’s latest argument reframes the issue as something even more personal: household finances.
For millions of Americans, car insurance is not optional. It is a mandatory expense that affects virtually every working family.
As rates begin to level off after years of painful increases, the debate over what caused those increases is likely to remain front and center.
Trump believes voters already know the answer.
His message is simple: secure borders reduce costs, while open borders make everyday life more expensive.
Whether that argument resonates with voters may become one of the defining economic debates of the next election cycle.
