Paid Off Car Insurance

It is a good idea to notify your car insurance company of the loan payoff so that you can remove the lienholder from your policy this means that if you maintain comprehensive and collision full coverage and your vehicle were to be totaled in an accident the payout from the insurance.

Paid off car insurance. Insurance companies will charge less to insure a car with a lower value. In terms of insurance what happens next is really up to you. It might seem like your insurance rates just got cheaper after you finally paid off your loan. The purpose of gap is to pay off a car loan or financial agreement when the financed car is totaled in a covered loss.

I paid off my auto loan in full yesterday. Notify your car insurance company when you ve paid off your loan so you can remove the lien holder from your policy. However that may be a factor of your car s value not your loan status. Should you change your insurance coverage.

You can remove your additional interest loss payee from your insurance information and don t have to worry about paying any car payments. The older your car the cheaper your license plate renewal and registration will be. You don t need to wait until you have the title in your hand to make the call. Paying off your loan and officially owning your vehicle is a big step.

Not everyone who finances a car needs gap insurance but anyone who owes more than the car is worth does. This step is important because if your financed vehicle were totaled in a wreck the insurance payment would go to the lender. Only the student loans and mortgage left. When to drop comprehensive and collision coverage on your vehicle and just keep liability insurance depends largely on the age of your vehicle.

The same goes for local excise taxes where applicable. When cars get about 8 years old or older that s the time to start looking at the math for the collision and comprehensive clark says. Your car title is a piece of paper that lists the official owner and any lien holders on your car. You just paid off your car and own it outright now get the paperwork that says so.

Paying off your car is a huge accomplishment. I appreciated all the congrats tweets you guys sent back. Philip taylor cpa ptmoney january 15 2009. Vehicles tend to dramatically decrease in value after the first couple years of their life.

The interest rate on my car loan was just way too high. When should you drop full coverage on your car. Gap insurance is a supplemental form of auto insurance coverage that s designed for leased and financed cars. When i paid off my car i was so excited i announced it on twitter.

You can t drop this coverage if a car is leased or a loan isn t paid off says amy bach executive director of united policyholders a citizen advocacy group that specializes in insurance. Your paid off car may no longer have that new car smell but that doesn t mean it isn t worth keeping.