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BargainQueen · Marc Jacobs

Car Insurance Question

itsapinkthing · Coach

BargainQueen wrote:

Does your car insurance premium go down in cost when you pay off the balance on a car loan? Someone told me this ages ago before I was even near paying off my car. I will be paying off my car early next week (yay!) and wanted to know if its true so I call my agent up soon after.

I believe your premium can go down if you go from full coverage to liability only. But then you are only covered for damage you do to another's property in an accident. You would have to pay for your repairs out of pocket.

cahabo · Kate Spade

itsapinkthing wrote:

BargainQueen wrote:

Does your car insurance premium go down in cost when you pay off the balance on a car loan? Someone told me this ages ago before I was even near paying off my car. I will be paying off my car early next week (yay!) and wanted to know if its true so I call my agent up soon after.

I believe your premium can go down if you go from full coverage to liability only. But then you are only covered for damage you do to another's property in an accident. You would have to pay for your repairs out of pocket.

This is my understanding too. If I didn't owe on my car I would only have liability.