I got my car (2020 Ford Fusion Hybrid SE) new 3 years ago at $25k for a 6 year loan @ 0% interest for entirety of loan, $350 a month payment. I’m about halfway paid off and have about $12.5k left on it. What should I do? I just get sick of paying $350 a month.
Why would insurance be cheaper?
Because liability car insurance (just covers damage for who/what you hit) is cheaper than comprehensive car insurance (also covers you and the car).
Finance companies will usually require you to have the latter through the end of the loan.
If you drop your coverage from comp/collision to liability only, you’re paying less, and assuming more risk - because if you get in an accident, your insurance will not cover the cost of repairing your car (or receiving a payout if it’s a total loss). A 2020 model year car is still worth having comp/collision coverage on.
Because as long as there’s a lien on your car, the bank that owns it wants to make sure it’s thoroughly insured until it’s paid for. Their insurance is mandatory and usually much more comprehensive (and expensive).