Last week, I made the last and final payment on my car loan. Now that I officially own the car, I decided to make some adjustments to my car insurance policy.
I called Progressive and let them know that I am now the full owner of the car. Immediately, they were able to remove protection for financed cars decreasing my rate!
I was also interested in removing collision and changing some other aspects of my policy to get my payments down to ~$100/month. When telling the customer representative this, she asked me a few questions to check if I was eligible for certain discounts. She asked if I am a homeowner; I am not. She asked my highest level of education. When I said I have a Bachelor’s Degree, she said that qualified me for a deduction. Just that alone saved me $8/month!
So after removing the loan protection, collision, rental service and applying the education deduction, my monthly car insurance rate dropped to $95/mo! I saved $32 just by paying off my car and making a phone call.
That makes for a total of $250/mo savings now that my car is paid off!