How the end of the de minimis exemption could cost you, how self-driving cars could lower insurance

About this Video

• Video Title: How the end of the de minimis exemption could cost you, how self-driving cars could lower insurance
• Channel: Yahoo Finance
• Speakers: Ally Canal, Esther Fung, Proz Romanian, Emma Aerman, Michelle Leonard, Bob Pal
• Duration: 24:00

Introduction

This Yahoo Finance video, "Mind Your Money," discusses the impact of the ending de minimis exemption on online shoppers, two expiring tax breaks (electric vehicle credit and energy-efficient home upgrades), and how self-driving cars may affect auto insurance costs. The show also features a segment answering viewer questions about retirement and insurance.

Key Takeaways

• End of De Minimis Exemption: The removal of the $800 import tax exemption on packages entering the US will likely lead to higher prices for online goods purchased from abroad, potentially including surprise tariff bills at checkout or from carriers. Personal packages from friends and family are exempt under $100. Some foreign postal services have paused e-commerce shipments to the US due to increased costs and complexity.
• Expiring Tax Breaks: Two tax breaks are expiring soon: the $7,500 electric vehicle tax credit (deadline September 30th; contracts signed before the deadline but with later delivery still qualify) and tax credits for energy-efficient home upgrades (deadline December 31st; installation must be completed by then). The show provides examples of EVs and home upgrades to consider.
• Self-Driving Cars and Insurance: While fully autonomous cars are not yet widely available, the increasing prevalence of self-driving features and robo-taxis suggests potential future decreases in auto insurance premiums due to fewer accidents. However, the long-term impact and timeline remain uncertain, with experts predicting it may take decades for widespread adoption. Partial automation systems haven't shown clear safety benefits yet.
• Insurance Liability in Self-Driving Accidents: In accidents involving self-driving vehicles, the liability generally falls on the owner (likely a corporation) of the vehicle, not the passenger. Insurance will likely shift from personal to commercial lines as self-driving adoption increases.
• Viewer Questions: The show answers viewer questions about Roth IRA conversions (emphasizing the importance of calculating the true marginal tax rate), Coverdell Education Savings Accounts (ESAs) as an additional option to 529 plans, the need for supplemental disability insurance beyond employer-provided plans, and the eligibility for HSAs with bronze or catastrophic health plans starting in 2026.