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.

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.