WASHINGTON, D.C. — Donald Trump attributed a decline in car insurance premiums to his immigration policies in a post on Truth Social. He claimed these policies reversed a "Biden Invasion."

Trump stated, "Car Insurance Premiums rose to RECORD HIGHS, forcing Law-abiding American Citizens to subsidize the 'free riding' Biden Illegals." He also blamed illegal immigration during the Biden administration for a prior increase in car insurance premiums. Trump wrote, "After over a year of ZERO ILLEGAL IMMIGRATION, and our highly successful efforts to REVERSE the Biden Invasion, Car Insurance Premiums have come tumbling down." The graphic he shared with his post showed car insurance premiums rising sharply from 2021 to 2023, then beginning to decrease in 2024, with negative growth projected for 2026. The graphic cited a Council of Economic Advisers analysis of Bureau of Labor Statistics data.

Insurance rates decreased in 2024 as accidents declined and insurers improved their financial positions. Mark Friedlander, a spokesperson for the Insurance Information Institute, said, "Over the past two years, the auto insurance industry has generated an underwriting profit following the implementation of significant rate actions to offset losses." Friedlander added, "Average auto insurance premiums have begun to stabilize, and replacement costs are more in line with the U.S. inflation rate." He also stated, "We are seeing average rate decreases being implemented across numerous states, as well as dividends being paid to policyholders by major auto insurers such as State Farm and USAA."

The COVID-19 pandemic declaration in March 2020 corresponded with a decrease in driving due to social distancing and remote work. The reduction in accidents and insurance claims during this period resulted in high profit margins for insurance companies. These companies used these profits to reduce rates and compete for customers. Driving volumes increased starting in 2022, leading to more accidents and insurance claims. Reckless and distracted driving also contributed to more accidents. Supply chain disruptions increased the cost of auto parts and repair materials, which insurance companies passed to consumers through higher premiums.

Michael Clemens, a senior fellow at the Peterson Institute for International Economics, estimated that the increase in illegal immigration during the Biden administration accounts for a 0.07% increase in car insurance premiums. A 2023 study published in the Journal of Insurance Issues indicated that areas with more people who illegally entered the U.S. tend to have more uninsured drivers, which results in higher car insurance premiums. This correlation was observed only in states that do not permit undocumented immigrants to obtain driver's licenses.