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How do I remove a lienholder from my car insurance?

I just paid off the loan for my car, which I'm really psyched about! Now that I don't owe anything, I want to remove the lienholder from my policy. I've never done this before, though—how do I do it?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
To remove your lender as the lienholder on your vehicle, you only need to call your
car insurance
company with proof of the loan payoff. The lender will usually send you the title or a lien release, which you can use as proof of the payment.
Once you’ve contacted your insurance company, the next step is deciding whether to continue full coverage or consider something else.
  • If your annual car insurance payment is more than 10% of the actual cash value of the car: You may want to consider switching to high-limit
    liability coverage
    to save some cash. 
  • If you feel more comfortable or aren’t worried about a higher monthly premium: You can continue to hold full coverage.
Either way, you should shop around to make sure you get the best deal on your coverage. The easiest way to do this is with the
Jerry
app—we’ll get you dozens of quotes from top-of-the-line providers so that all you have to do is pick the plan that works best for you! And once you’ve picked one, we’ll even help you switch.
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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.

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