How a Trump Presidency May Affect Your Insurance Rates

In his first term as President in 2016, Donald Trump sought to enact work requirements for subsidized Obamacare health insurance plans but was unsuccessful. Going into his second term in 2025, he says he won’t scrap it altogether but that Obamacare is just too expensive. What’s more, he claims that he can cut auto insurance increases by half after he’s elected. Also, business owners are hopeful that a Trump presidency will boost business, but what does it mean for business insurance? Let’s look at how Donald Trump may affect your insurance bills in the next four years.

Trump’s Presidency: How It Will Affect Health Insurance, Medicare and Medicaid

One wonders if Trump will amend the Affordable Care Act (ACA), to make it more cost effective for the government while easing restrictions on short-term health insurance policies which cost less for consumers but don’t have comprehensive benefits and don’t comply with ACA consumer protections.

Trump may also try to trim the budget by reducing funds for ACA enrollment outreach. Some critics fear that he’ll allow insurers to charge people with chronic conditions higher premiums.⁽³⁾

Trump has also been accused of wanting to get rid of Social Security and Medicare but has vehemently denied the claim. His new administration may make changes to Medicaid, which provides health care coverage for low-income Americans. Those who have both Medicare and Medicaid may be affected the most, especially if there are work restrictions placed on eligibility requirements.

While some are optimistic that Trump will lower health insurance costs, others worry that he will cut spending on healthcare, thereby making it harder for those who would otherwise qualify for subsidies to buy a plan. Currently, the uninsured rate of Americans is about 8%, and that number could rise if Trump decreases enrollment outreach.⁽³⁾

Many remember Trump vowing to fund at-home health care for those with medical needs. However, experts on the left say cuts in Medicaid are more likely, as a means of funding the extension of tax cuts, which will otherwise expire at the end of 2025. The Trump Administration may restrict Medicaid eligibility with work requirements, just as he may do with ACA plans. It’s also possible that he may cap federal funding to states, thereby cutting subsidized health insurance plans for many Americans.⁽³⁾

RFK Jr. as Secretary of the Department of Health and Human Services

In a Tweet on X, President Donald Trump said this about his pick for Department of Health and Human Service Secretary, Robert F. Kennedy Junior, who will oversee health insurance and Medicare : “Mr. Kennedy will restore these Agencies to the traditions of Gold Standard Scientific Research, and beacons of Transparency, to end the Chronic Disease epidemic, and to Make America Great and Healthy Again!”⁽¹⁾

President Biden will be remembered by millions for lowering prescription drug costs on expensive medications, like insulin. Trump will likely be remembered for disrupting health insurance and Medicare altogether. RFK Jr. holds very unorthodox views on science and medicine, especially because of his distrust of vaccines. It’s possible that he will make changes that fit his vision and that may change health insurance coverage as we know it.

RFK says he plans to get rid of corruption in the government, a goal intended to reduce unnecessary costs in the health sector. On his “mission to make Americans once again the healthiest people on Earth,” he repeatedly talks about curbing “the chronic disease epidemic.”⁽¹⁾ Some infer that he is referring to lifting ACA rules about denying health insurance to those with chronic conditions. Others believe he will fix corruption in how healthcare is administered.

How Will a Trump Presidency Affect Property Insurance, Like Home and Auto?

While campaigning as a presidential nominee in 2024, Trump tweeted on X about cutting auto insurance increases in half. He said that auto rates were up 73%, which by all means, is a gross exaggeration, when the highest increase is in Minnesota at 61% and most states were seeing an 18% rate hike on average in 2024.⁽⁴⁾

The reality is that Trump's other proposals, namely his plan to add tariffs to overseas products, may have the opposite effect, making claims even more expensive.

Insurance is a global enterprise, and Trump’s “America First” strategy, which includes tariffs on overseas parts and materials, could end up negatively affecting homeowners insurance, car insurance and even business insurance by raising premiums.⁽²⁾ For one thing, roughly 60% of auto parts come from other countries, which will raise prices to compensate for tariffs, passing on the cost to consumers around the world.

The fact is that aside from helping to ease inflation and possibly enhancing funding for distracted driving awareness or improving roads, there’s little a sitting president can do to cut auto, even home, insurance rates

Interest rates began dropping in 2024, even more than expected, which means lower costs for replacement parts for cars and building materials for fixing damaged homes. With a Trump presidency, some economists are hoping that inflation eases up even more. If it does, that may help lower all types of property insurance.

On the flipside, if the Trump Administration deregulates businesses by scrapping the Environmental Protection Agency, for instance, it could worsen the climate crisis in the long term and that may equal more natural disasters and higher insurance rates.

Will Business Insurance Be Affected by Trump’s Policies?

President Trump won his second term in 2024 on the promise of improving the U.S. economy and helping businesses flourish. Aside from eight years of his life, he has been a businessman so he has expectations to meet. Whether or not boosting the economy will help lower business insurance costs is a strong possibility.

Most people are already expecting Trump tax cuts for businesses, and that would usher in more new businesses with a need for business insurance.  If there are more business insurance policies sold, that may give way to lower business insurance premiums overall.

Businesses may also see some regulatory relief with a Trump presidency, which will cut overhead costs, thereby making insurance more affordable.⁽²⁾ Also, there is a strong correlation between lower interest rates and lower insurance costs because materials for rebuilding or replacing will cost less and so will labor.

We’ll be sure to update you on changes as they roll out, so keep checking back with us.