What happens when you finish paying your car loan?
I’m making my last car loan payment next week, and I’m not sure if there’s anything I have to do once it’s paid off. What happens when you finish paying your car loan?
Congratulations! That’s a big accomplishment, and you must be excited to be making your last car loan payment next week.
Once the loan has been paid off, you are the sole owner of the vehicle, and there are just a few things you should do, including:
- Get your title back. Many states are title-holding, meaning the lender has the car’s title and will mail it back to you in a few weeks once they remove themselves as a lienholder. However, if you live in a non-title-holding state, you should already have the title and will need to visit the DMV to remove the lienholder.
- Update your car insurance company by letting them know you no longer have a lien on the title.
- Review your car insurance policy. Now that you are the sole owner of the vehicle, you can remove the comprehensive and collision coverage, although it is wise to keep.
When updating your car insurance company and making coverage changes, your rate will undoubtedly change. If you want to ensure you’re getting the best rate, use Jerry, an insurance comparison app that shops for low prices with over 50 different insurance companies for free.
If you’re hesitant to switch plans or insurance providers because you’re worried about the work involved, don’t be. Jerry does all the paperwork for you and even helps cancel your old policy! And if you have any questions along the way, just text one of our agents through the app. They will always be there to assist you.
Did this answer help you?
Ask us a question by email and we will respond within a few days.
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
Browse by topics
What others are asking
What does pre-approval mean for a car loan?
I’ve been shopping for a new car, and I know I’ll have to take out a car loan to afford it. My parents recommended I get pre-approved for a car loan, but I don’t understand what that means What does pre-approval mean for a car loan?
Dec 01, 2021
What happens when you pay off a car loan?
I just finished paying off my first-ever car loan, and I’m not sure what’s next. What happens when you pay off a car loan?
Dec 01, 2021
What happens after you pay off your car loan?
I only have two months left until my car loan is paid off, and I’m curious. What happens when you pay off your car loan?
Dec 01, 2021