Services
PriceProtect™
DriveShield™
GarageGuard™
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Home 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
Recent Studies
Comprehensive Data Reports
Reviews
About
FAQ
MenuIcon
BACK

Why would a car loan payoff be higher than the balance?

I want to pay off my car loan, so I requested a car loan payoff statement. However, the payoff amount is more than my balance. What’s going on?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
This may come as a shock, but a payoff letter will always be higher than the balance of your
car loan
 (or any other loan). Here’s why.
A payoff letter always includes added interest from the day you requested it. Essentially, the lender is asking for the balance plus interest—which is exactly what you owe them.
If you’re able to pay off the amount indicated on the letter, congratulations! You’re all done with your car loan. Make sure to keep the letter as proof that you own the car in its entirety.
When you’re finished paying off your loan, you may want to switch your car insurance to reflect the level of coverage you (not your lender) want.
Jerry
 can help you compare competitive quotes to find an affordable policy with the protection you need.
MORE:
Is the Jerry app legit?
Car LoansFinanceCar Loan
View full answer 
Jerry user testimonial avatar
rating primary
“My experience with Jerry has been absolutely incredible. It took my car insurance from about $400/month to about $80. The entire experience is seamless.” - Gregory R.
Lower my car insurance too
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

Find insurance savings

You Might Also Be Interested

card cover

Does Paying Off Your Car Lower Your Insurance?

Paying off your car doesn’t necessarily mean lower insurance prices, although you may be able to make changes to your policy that could lower your rates.
avatar
Amy Bobinger
card cover

How Does Interest Work on a Car Loan?

If you took a loan to pay for your car, you will be charged interest on your monthly loan payments. Interest is what you’re charged to borrow money.
avatar
Mary Cahill
card cover

What Is a Car Loan-to-Value Ratio?

An auto loan-to-value ratio compares the cost of your loan to the value of your vehicle.
avatar
Claire Beaney

Read Advice From Car Experts At Jerry

card cover

2012 Volkswagen Jetta Life Expectancy

The average life expectancy of a Volkswagen Jetta is around 200,000 miles—but the 2012 model is prone to engine problems that could shorten its lifespan.
avatar
Kathryn Mae Kurlychek
card cover

PIP Insurance from Progressive

Required in certain states, Personal Injury Protection (PIP) covers medical bills and lost wages for you and your passengers after a car accident.
avatar
Mariza Morin
card cover

Alaska Driver’s License Requirements

To get an Alaska driver’s license, you’ll need to present a valid ID, pay a fee, and go through Alaska’s graduated driver’s license program.
avatar
Jason Tushinski

What Others Are Asking

How do you change the clock on a 2005 Ford Explorer?
Daylight savings just happened and I changed all my clocks, but I can’t figure out how to change the one in my truck. How can I change the clock in my 2005 Ford Explorer?
avatar
Jessie Devine
Can two names be on a car title?
My partner and I are planning to buy a brand-new car. We’ll both use it regularly. Can two names be on a car title?
avatar
Kevin Martinez
What is the usury interest rate in Alabama?
I recently moved to Alabama and I'm looking to get a car loan. I'm not familiar with lenders here, so I'm not sure who is reputable. What is the usury interest rate?
avatar
Emily Maracle
Browse All Questions

Browse More Content

Car Repair Resources

Insurance for Your Car

Insurance in Your State

    Insurance In Your City

    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
    Car Insurance by Make
    Audi
    BMW
    Dodge
    Ford
    GMC
    Honda
    Hyundai
    Jeep
    Kia
    Lexus
    Mercedes-Benz
    Mitsubishi
    Subaru
    Tesla
    Toyota
    View all
    Car Insurance by Model
    Chevrolet Silverado
    Chevrolet Malibu
    Ford Escape
    GMC Sierra
    Honda Accord
    Honda Civic
    Hyundai Tucson
    Jeep Cherokee
    Jeep Wrangler
    Kia Forte
    Mazda 3
    Nissan Altima
    Subaru Outback
    Subaru Crosstrek
    Toyota Camry
    Toyota Corolla
    Toyota Tacoma
    Toyota Highlander
    Toyota Rav4
    Volkswagen Jetta
    View all
    Car Insurance by State
    AL
    AZ
    AR
    CA
    CO
    CT
    DE
    FL
    GA
    ID
    IL
    IN
    IA
    KS
    KY
    LA
    ME
    MD
    MA
    MI
    MN
    MS
    MO
    MT
    NE
    NV
    NH
    NJ
    NM
    NY
    NC
    ND
    OH
    OK
    OR
    PA
    RI
    SC
    SD
    TN
    TX
    UT
    VT
    VA
    WA
    WV
    WI
    WY
    Car Insurance by City
    Austin, TX
    Boston, MA
    Charlotte, NC
    Chicago, IL
    Columbus, OH
    Dallas, TX
    Denver, CO
    Houston, TX
    Indianapolis, IN
    Jacksonville, FL
    Las Vegas, NV
    Los Angeles, CA
    Nashville, TN
    New York, NY
    Philadelphia, PA
    Phoenix, AZ
    Portland, OR
    San Antonio, TX
    San Francisco, CA
    Seattle, WA
    View all
    Car Loan by Make
    Audi
    BMW
    Chevrolet
    Ford
    GMC
    Honda
    Hyundai
    Kia
    Lexus
    Nissan
    Mercedes-Benz
    Subaru
    Tesla
    Toyota
    View all
    Car Insurance by Company
    AAA
    Allstate
    Aspire Advantage
    Assurance America
    Bristol West
    Commonwealth
    Dairyland
    Encompass
    Infinity
    Kemper
    Mapfre
    Mercury
    National General
    Nationwide
    Plymouth Rock
    Progressive
    Safeco
    State Auto
    Travelers
    Car Loan by State
    AL
    AZ
    AR
    CA
    CO
    CT
    DE
    FL
    GA
    ID
    IL
    IN
    IA
    KS
    KY
    LA
    ME
    MD
    MA
    MI
    MN
    MS
    MO
    MT
    NE
    NV
    NH
    NJ
    NM
    NY
    NC
    ND
    OH
    OK
    OR
    PA
    RI
    SC
    SD
    TN
    TX
    UT
    VT
    VA
    WA
    WV
    WI
    WY
    Car Repair by Service
    AC Compressor Replacement Cost
    Battery Replacement Cost
    Fuel Injector Replacement Cost
    Fuel Pump Replacement Cost
    Ignition Coil Replacement Cost
    Oil Change Cost
    Oil Pan Replacement Cost
    Power Steering Fluid Service Cost
    Rotate Tires Cost
    Spark Plugs Replacement Cost
    Timing Belt Replacement Cost
    Valve Cover Gasket Replacement Cost
    Water Pump Replacement Cost
    Wheel Bearings Replacement Cost
    View all