Does car insurance go down after you pay the car off?

Question

I bought it used, it's a 2000, blue book value is about $6K

What do you think?

Answer 1

NO!! It goes by your age,driving record and vehicle type. It gets lower at age 24 with a good driving record. depending on car type (sports cars and SUV--High$) (Old car -10 years and trucks-- Cheap$) Also depends on if you get full coverage or not.

Answer 2

It really depends on the carrier. The only thing you might want to look at to lower the cost is the level of collision coverage you have. Many banks require very low deductibles. If your the type of person that does not drive much and does not have an accident every few years then you might want to consider changeing your deductible. I have seen some carriers drop the premium as much as 250 a year by going from a 250 deductible that some banks require to 500 or from 500 to 1000. If you figure out how many accidents you have had in the last 10 years and then figure out how many were your fault you might want to gamble with higher deductibles. You will save if you take the gamble rather then the insurance company. If your displined in savings you could raise the deductible to say $5000, take the money saved on insurance and put into a special high interest savings account. That way if something did happen you would have the money to fix it. If you have no accidents the money is still there in your account and not the insurance companies. This is plan works real well if you have many cars in the family. In 5 years you would be surprised how much money you will have in that account. Some cases enough to buy a new car for cash and have money left over.

Answer 3

No car insurance does not go down after you pay off the car. Here is were the misconception is....after you pay the car off you are no longer required to carry comprehensive and collision coverage by the lienholder.

So if you are ok with being responsible for the repairs or replacement of your car if it is in an accident then you are ok to drop those two coverages and your rate will go down ALOT. Keep in mind you will have no coverage for your car though, the only way it would be covered for repairs is if someone hits you and it is an at fault accid for them and not at fault for you.....their insurance will pay as long as they have insurance....if they don't you are outta luck.

Answer 4

The cost of insurance has nothing to do with whether you owe on the vehicle or not. What matters is now you can delete the comprehensive and collision insurance because you don't have to insure the car to guarantee the loan.

It will save you quite a bit to take it off, but remember that if there is physical damage to your car, you have no coverage. The only way it would be covered is if it is damaged due to the negligence of someone else and they have to pay for the damages.

Answer 5

Not usually automatically. You're no less risky of a driver. Although, in the process, you've aged and that might make your rates go down.
What you can do once it's paid off, however, is go off of full coverage, which you have to have on the car when it's on a loan. Once you've paid off the loan, you own the car so if you want to drop down to liability only coverage, you can do and that's much cheaper. That's what I do. However, that's risky. If you just paid off your car and it's still pretty valuable and you then wreck it, you just ate that loss. You're still insured for the damage you do to others, but you'll eat your own losses.

Answer 6

No, it goes down as it ages, or as you delete coverage.

There's no charge for the "leinholder" endorsement on an auto policy, so paying off the car (which means, deleting the leinholder) in itself won't make any difference at all.

Answer 7

In an insurance context, it is usually irrelevant whether the car is paid off or not. In UK it is not something that is asked when you fill out the application for the policy

Answer 8

Help yourself - you can check your quotes in internet for example here - CHEAPTOINSURE.INFO

RE Does car insurance go down after you pay the car off?

#EANF#

Answer 9

No, but you can drop full coverage and just go with liability. This isn't a good thing to do if your car is worth anything.

Answer 10

It can, but it depends on your age, your state, and the type of coverage you have. Now that there isn't a lien on the car, you could change the type of coverage you have that will enable the premium to drop.