PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
How do I pay off my new car loan?
I have a 60-month loan that still has a year left, but I want to pay it off early. How do I go about this?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
If you want to pay off your
car loan
a year early, the process is relatively simple. Since you have the cash in hand, simply call or email your lender and request a payoff letter. This letter shows the exact amount of money you need to pay off the loan, including all accrued debt, any missed payments, or other fees. Cut them a check for this amount and you’re done.But before you do that, make sure to ask about any
prepayment penalties
. If your loan doesn’t have any, you’re golden. If it does, you should weigh the amount of the prepayment penalty against what you would pay in interest over the remainder of the loan.You may also want to factor in the cost-savings of insurance, as you can select
cheaper car insurance
if you pay the car loan off. Lenders require full coverage for a financed vehicle, but once you pay off your loan, you won’t be required to have full coverage anymore.If you want to get an idea of how much you can save on car insurance, it never hurts to look at quotes, and
Jerry
can help you do just that. Jerry compares personalized quotes from more than 50 top providers, including Nationwide, Allstate, and Travelers, and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
