PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
How much money could I save if I pay off my $25,000 car loan early?
I owe $20,000 on my $25,000 loan. The current interest rate is five percent, and I still need to pay for 48 months. How much can I save if I pay my loan off early?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“If you have $20,000 for the payment of the loan, you stand to save thousands at a five percent interest rate. That said, you need to make sure the decision makes financial sense; don’t stretch your finances too thin.
On top of saving thousands, you could also save money because your lender will no longer require you to carry full-coverage car insurance. While it may be a good idea to keep
collision coverage
or comprehensive coverage
, you could always switch to liability only.”View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies