Q: Do I still need full-coverage auto insurance if I've paid off my car loan in full?
Apr 27, 2021

I just paid off my car loan in full. I want to save money on insurance, but I'm not sure if I can change my coverage to something cheaper.

Answer provided by
Eric Schad
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

“Once you pay off your car loan, you’re no longer contractually obligated to carry full-coverage car insurance.

But that doesn’t mean you should completely drop your coverage in favor of liability insurance only.

Instead, think about the value of your car. Is it worth $10,000 or more? If so, keeping collision coverage and comprehensive coverage might be worth it.

If you’re comfortable taking a total loss on the car in the event of an accident, getting liability-only insurance might save you money.

Whatever you decide, check out Jerry to compare car insurance rates and get the best deal possible.”

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This app is truly amazing and I recommend it to everyone. They were able to save me over $100/yr on car insurance, and I hardly had to do a thing. They got finalized quotes for me in minutes, and I didn't have to call anyone. They also canceled my old policy, and got me on to my new one for me!
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This app is truly amazing and I recommend it to everyone. They were able to save me over $100/yr on car insurance, and I hardly had to do a thing. They got finalized quotes for me in minutes, and I didn't have to call anyone. They also canceled my old policy, and got me on to my new one for me!