Will my rate go down now that my car is paid off?

Now that my car is paid off, will I see a decrease in my insurance policy? I just put the last payment for my car in the mail today!

Answer
“Congratulations on paying off your car!
Now that your car loan is done, make sure to contact your insurance carrier and have the bank removed from the policy. This way, if there is a claim, the claim check will be issued to you and not the bank.
Unfortunately, paying off the car doesn’t provide a discount on the policy.
The only difference now is that you can choose to remove comprehensive coverage and collision coverage from the policy if you want to.
You will only want to make this change if the actual cash value of your car is very low.
If you want to lower your policy rate, contact the carrier and ask for a policy review. There may be new discounts or coverage options that provide a lower price.”
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Shannon Martin
Answered on Jul 06, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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