Question

Will my insurance change after I pay off the loan?

I paid my car off but haven’t contacted my insurance carrier yet but I was wanting to know will my full coverage insurance be cheaper?

Dec 9, 2018 Spencer, TN

Answer
Ava Lynch

Dec 9, 2018

The financial status of your vehicle does not impact your rates. If you decreased the coverage to liability only then you would see a significant decrease in your rates. To decrease the coverages, you would want to remove comprehensive and collision coverage. This would mean your car is not covered for physical damage. Since you are wanting to keep full coverage, you will not see a rate decrease. Keep in mind, when the vehicle is over ten years old, it can be more expensive to have full coverage than what the insurance company would pay for the vehicle in the event of an accident. Good luck and if you have any questions, don't hesitate to ask.

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