Yes my car insurance jumped $100 the minute I paid off my car.
this post was submitted on 17 Jul 2025
794 points (98.1% liked)
Late Stage Capitalism
1962 readers
1612 users here now
A place for for news, discussion, memes, and links criticizing capitalism and advancing viewpoints that challenge liberal capitalist ideology. That means any support for any liberal capitalist political party (like the Democrats) is strictly prohibited.
A zero-tolerance policy for bigotry of any kind. Failure to respect this will result in a ban.
RULES:
1 Understand the left starts at anti-capitalism.
2 No Trolling
3 No capitalist apologia, anti-socialism, or liberalism, liberalism is in direct conflict with the left. Support for capitalism or for the parties or ideologies that uphold it are not welcome or tolerated.
4 No imperialism, conservatism, reactionism or Zionism, lessor evil rhetoric. Dismissing 3rd party votes or 'wasted votes on 3rd party' is lessor evil rhetoric.
5 No bigotry, no racism, sexism, antisemitism, homophobia, transphobia, ableism, or any type of prejudice.
6 Be civil in comments and no accusations of being a bot, 'paid by Putin,' Tankie, etc.
founded 10 months ago
MODERATORS
it's your car now, not the bank's. so you can reduce your coverage and lower your premiums. the higher rates are to make sure the insurance company doesn't lower their profits when you drop the 'full' coverage.
Yeah. Between this and the “switch providers” advice I will be looking at it. I am not sure I want to reduce my coverage though. Where I live people are absolutely batshit. I know everyone says this…but I’ve never felt more in danger driving than I do in Connecticut, surrounded by people rich enough to murder me with their car and think of it as an inconvenience.
Yeah, it's crazy what people do with insurance. We have a really odd car insurance plan. We just have a single mid-2000s Carola as our only vehicle. So we don't bother with full coverage. If the car gets totaled, oh well, we're out a few thousand. But what we do go all out in is the liability policy. I'm not worried about the 20 year old Toyota. I'm worried about losing our life savings if I cause an accident and end up putting someone in a wheelchair for life. So we buy the largest liability coverage we can, and then we have a million dollar umbrella policy on top of that.
To me this seems the only sane way to do it. Not only do I want to make sure I'm not financially destroyed if I cause a big accident, but also, just from basic compassion, I want to make sure that anyone I might hurt is well taken care of.
load more comments
(10 replies)
just paid all credit cards to zero, FICO 8 went up 16 point, FICO 9 went down 15 points 🤷
load more comments
(5 replies)
On the topic of the title: In my own case, I didn't even pay all of my debts, all it took was to pay off my student loans. My credit score dropped 30+ points from that and has never recovered since.
And to all the liars who said some variation of "it's just a temporary drop" ... You are liars. That is simply not true, at least not for everyone, and you lied. Maybe consider stop giving advice about things when you're clueless.
And to anybody who might consider listening to those clueless liars, please note that a whole lot of the advice you might read from people online is coming from clueless liars.
Okay, I'll end my rant there.
But... The fuck is the alternative? It's not worth being late on payments to keep a loan open nor is it worth racking up interest if you can pay it off early (*) only because you want to keep a few extra points on your score. ~30 points isn't that serious depending on what your score is. If it's low it can matter more, but if it's higher it doesn't matter too much. It's very rare that ~30 points will make or break you. In short, I wouldn't consider paying extra interest only for my credit score to stay higher.
(*): Depending on the interest rate of your loans it's not always worthwhile to pay off early. Everyone's risk tolerance is different, but, hypothetically, if your interest rate is less than what you can get in a high yield savings account you're better off putting the extra money into savings. If you're risk tolerant then bonds or total market index funds may be a better choice as well. This really gets into the weeds of it, but my point is that ~30 points really isn't worth paying extra interest money for.
load more comments
(1 replies)
Keeping a mortgage is also used as a tax write off. So a lot of people who could afford to pay off their homes don't because of that as well.
I'd like to see the math on that.
That’s because it’s generally false. It’s only correct under certain circumstances like being in the house flipping game, etc. and likely requires you to have a tax lawyer.
Paying a mortgage generally costs more than the deduction.
Doesn’t everything cost more than the deduction unless the tax is more than 100%?
You’d think.
But it gets weird when you are doing a lot of business because other factors come in that DO NOT APPLY to normal homeowners.
That’s the only reason I qualified with any exception which is the inverse of what op was doing.
Anecdotally I haven’t found this to be true. I’ve had mortgages, car loans, etc and times in between without debt. Credit score never really wavered more than 10-15 points.