Do I need to change the insurance beneficiary after paying off the car loan?
1 Answers
First is the beneficiary. When we confirm that the loan has been fully repaid, we need to go to the lending institution to change the beneficiary, because when we purchased the car using an auto loan, the beneficiary was naturally the lending institution. Second is the release of lien procedure. Essential steps after paying off your car loan! Especially noting the repayment date, otherwise you might get scammed without realizing it! This is closely related to the ownership rights of the vehicle. If the lien isn't cleared, the car technically isn't ours, so completing the release of lien procedure is crucial. When handling this, bring the vehicle registration certificate and documents proving the loan has been repaid. This step is for our own protection. Third is the registration certificate. Must-do tasks after paying off your car loan! Especially changing the beneficiary, otherwise the car isn't truly yours! After paying off the loan, take your ID and valid documents to retrieve the registration certificate from where you bought the car. If financed through a bank, go to the bank; if through a financial company, collect it from the 4S dealership. Also check if there's a specified time on your commercial insurance policy and follow it if present. Fourth is repayment confirmation. After paying off the loan, always verify it's truly settled. If confirmed, visit the installment bank within ten days to retrieve the lien release documents. This is particularly important because some owners might not track their payment schedule accurately and could be taken advantage of by dealers.