Is Car Insurance Cheaper When The Car Is Paid Off? 
It can be , but it honestly has very little to do with paying off the car . When there is a lienholder , they require that the insurance policy include coverage for physical damage to the vehicle , namely Comprehensive and Collision . Once the loan is paid off , there is no entity imposing that requirement any more so you could remove those coverages form your policy and save premium . Discuss this decision with your Insurance Professional in order to best understand the potential premium savings vs the possible financial risk to you in any future loss . 