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
Should I pay more than the monthly payment each month on my car loan?
I want to get rid of my car loan as fast as possible. Is it a smart move to put more money toward the monthly payment each month to get out of debt?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Good question! Deciding to pay more than the monthly payment each month on your
car loan
requires careful consideration of many factors. Here’s what to consider.First, consider your financial situation. Would paying a few hundred extra dollars a month hurt your finances? Would you rather have the money in your savings for an emergency? These are two important questions to answer.
Another consideration is whether your lender charges a
prepayment penalty
. If they do, paying extra each month and paying off your loan early may actually cost you more than just paying your monthly note for the duration of the loan.The last aspect to think about is your
car insurance
. If you don’t pay your loan down early, you have to pay for full coverage car insurance for the duration of the loan. While this offers great protection for your asset, it can get pricey six or seven years down the road.Regardless of whether you decide to pay more toward you loan each month or go with the monthly payment, you can always save money by comparing car insurance rates. To make the process quick and easy, hop on the
Jerry
app to compare rates from over 50 reputable companies.Best of luck with paying down your loan!
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
