What happens to your insurance when you pay off your car?

I just paid off my 2017 Mitsubishi Mirage. Will my insurance rate go down since I no longer have a car loan? Will there be any other changes to my policy?

Answer
“Your car insurance rate won’t change simply because you paid off your vehicle. However, most people choose to lower their insurance from full coverage, which is required by lenders, to liability insurance, which can significantly lower the rate on your Mitsubishi Mirage
The value of your car plays a vital role in whether you choose collision insurance and comprehensive insurance or liability only. A general rule is that if your annual insurance payment is 10% of the value of the car or more, you should switch to liability only.”
avatar
Emily Maracle
Answered on Jul 29, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free