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
When you pay off a car loan, what happens?
After many years and a few refinance loans, I’m finally one payment away from paying off my car loan. However, I’m curious, when you pay off a car loan, what happens?
Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Congratulations; it sounds like you’ve had quite a journey paying off your
car loan
, so you must be excited to have the end in sight! When you pay off a car loan, you gain full ownership of the vehicle, and the
lienholder
can be removed from the title. You are also no longer required to carry comprehensive
and collision
coverage, although they are both smart to have. Depending on your state and lender, the process of getting your title is as simple as getting it in the mail a few weeks later or making a trip to the DMV. If you live in a title-holding state, meaning the lender has possession of the title, they will send you your title within a few weeks of you making the final payment. If you live in a non-title-holding state, you should already have the title and will have to visit the DMV to have the lienholder removed.
Whether or not you decide to keep the comprehensive and collision coverage, you should notify your
car insurance
company that you no longer have a lienholder. After updating your insurer, your rate will likely be adjusted, and you should take the time to compare quotes from multiple companies to ensure you aren’t overpaying for your coverage. If you want to take the hassle out of comparing quotes, download
Jerry
, an insurance comparison app that shops for low prices with over 50 different insurance companies, including Nationwide, Allstate, and Travelers, 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 even help cancel your old policy once you’ve made your pick! 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
