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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Joshua is a copywriter at Obrella who for more than 10 years has been creating content about insurance, health care, and more. He helps companies explain complex insurance subjects in simple ways so that customers can make smart buying decisions. He spends way too much time binge-watching Netflix, loves the outdoors and has a cat who tolerates him.

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Reviewed by Joshua Adamson
Joshua Adamson

UPDATED: Aug 23, 2016

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Does Car Insurance Lower When My Car Is Paid Off?

When you pay off your car loan, you reduce your bills, but you won't see a decrease in your insurance rate. But there are other ways to lower your car insurance rate.

How to Lower Your Car Insurance Rate

The only ways to lower your insurance rate are through your driving habits, lifestyle, and reducing your coverage. If your car was more expensive when you initially purchased insurance, your car has depreciated in value and thus may cost less to insure. Also, improving your driving record can lower your rate.

When you pay off your car loan, you reduce your bills, but you won’t see a decrease in your insurance rate.

Enter your zip code below to view companies that have cheap insurance rates.

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Less Coverage and Lower Limits

Once you’ve paid off your car, it’s a good time to reevaluate your coverage. Some loan institutions require you to have a minimum amount of coverage while you’re paying off the loan. Once you pay off the loan, you are no longer under that requirement, and thus you may opt to change your insurance policy.

If you have paid off your car loan or want to learn more about lowering your car insurance rate, call us today to get help finding the best coverage at the right price for you.

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