Gia Luisa Honnen-Westbourne Explains Car Insurance Costs and Ownership Realities in FinanceBuzz

As Americans grapple with rising vehicle costs, Pepperdine Graziadio faculty member Gia Luisa Honnen-Westbourne offers practical guidance in a recent FinanceBuzz feature examining whether car insurance becomes cheaper once a vehicle is fully paid off.

The article highlights that Americans owed $1.18 trillion in auto loans in the first quarter of 2025, reflecting how common financing and leasing remain. Honnen-Westbourne explains that while paying off a car eliminates monthly loan payments, insurance premiums typically don’t decrease automatically. Insurers continue to base rates on risk factors such as driving history, vehicle type, location, and usage.

Where ownership does make a difference, she notes, is flexibility. Without lender or leasing requirements, drivers may choose to adjust coverage, potentially lowering costs if they are comfortable assuming more risk. She emphasizes weighing short-term savings against long-term financial protection.

In the expert Q&A, Honnen-Westbourne also addresses extended warranties and prepaid maintenance plans, advising consumers to read the fine print, negotiate pricing, and compare costs carefully. While these plans can offer convenience and budgeting simplicity, she notes they are often structured to benefit the seller more than the buyer.

Through her contribution to FinanceBuzz, Honnen-Westbourne delivers clear, consumer-focused financial insight to help drivers make informed decisions about car ownership and long-term budgeting.

Read more here.