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?

Congratulations! Paying off your car loan is a significant accomplishment, and you now have full ownership of your vehicle!
Now that the loan has been repaid, there are just a few things you should do:
  • Get your car title back from the lender. Fortunately, this step is easy, and the lender should mail you a clear and free title within a few weeks. However, if you are non-title-holding, meaning you still have possession of the title, you’ll have to submit the appropriate lien removal documents to the DMV.
  • Notify your car insurance company that you no longer have a lienholder.
  • Shop around and review the types of coverage you need.
If you want to ensure you’re not overpaying for your coverage, use Jerry, an insurance comparison app that shops for low prices with over 50 different insurance companies for free. You will get quotes in seconds, can make changes at any time, and if you ever have any questions, agents are just a text away! They’ll even help cancel your old policy.
Jack Walsh
Answered on Dec 01, 2021
Jack is an insurance specialist and writer living in Buffalo, New York. He has a BA from Union College and worked as an insurance agent with Jerry before joining our content team. He enjoys using data and research to break down complex subjects and convey a story. In his spare time, Jack enjoys cycling, cooking, and exploring Buffalo’s beautiful waterfront.

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