Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Paid off our one and only vehicle a couple of months ago. Just recently got the new auto insurance premiums in the mail and it is about $25 cheaper/month. Is this likely tied to not having a lienholder or is it just some fluke in NC?
Yeah, I've never heard of rates changing due to a payoff. It's more likely that it was the normal adjustment as the car ages, or perhaps a rate adjustment for any number of other things.
actually, it depends on what carrier. I am an agent and have a carrier that uses a lienholder as part of the rating formula, so in that case, it would matter. But to be honest with you, most don't factor that in, so it is probably because your car is a year older and the value has dropped.
actually, it depends on what carrier. I am an agent and have a carrier that uses a lienholder as part of the rating formula, so in that case, it would matter. But to be honest with you, most don't factor that in, so it is probably because your car is a year older and the value has dropped.
One of course could call their agent. Makes me wonder though if lien holders typically notify insurance carries that the lien is done or not. I'm not sure why they would have to. I can understand having to have a rider to get the loan of course but am not aware of a regulation on what to do at payoff.
Or for that matter if someone paid cash for their car like I did. And if you get an online quote I don't think they ask if there's a note or not.
Paid off our one and only vehicle a couple of months ago. Just recently got the new auto insurance premiums in the mail and it is about $25 cheaper/month. Is this likely tied to not having a lienholder or is it just some fluke in NC?
One of course could call their agent. Makes me wonder though if lien holders typically notify insurance carries that the lien is done or not. I'm not sure why they would have to. I can understand having to have a rider to get the loan of course but am not aware of a regulation on what to do at payoff.
Or for that matter if someone paid cash for their car like I did. And if you get an online quote I don't think they ask if there's a note or not.
Just wonderin'
there's a section on each policy called lienholder information. If you have a lien, your lender will require they be listed as an additional insured. This means that they get some of the same notifications you do, like cancellation of insurance notices and renewals. There is a place to put the date of the expiration of the loan, on that date, they will receive an automatic notice that they are no longer an additional insured, and are removed from the policy. If that particular carrier uses liens as part of their rating methods, at renewal it would affect the premium. But like I said, I know of at least one that does, but most of the carriers that I use do not use that as a rating factor, so it would be irrelevant in most cases.
If you obtain a quote without adding the lienholder, and it is one of the carriers that uses it as a rating, the premium will increase when you add the lienholder (and the lienholder WILL eventually require it, its just a matter of time). That's how I found out that one of my carriers had that tied in to their rating system. Carriers factor in the strangest things sometimes that don't make sense, like how may bathrooms you have and if its a half bath or full, your occupation, whether you are married or divorced, difference in pricing if your home is 3,100 feet or 3,102 feet... you really have to get to know their systems to get the best pricing. Nobody is going to dispute the exact number of square feet, or whether you have 3.5 or 4 bathrooms, or question if you are really separated, but it sometimes makes a big difference.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
