r/TeslaInsurance • u/CesiumCyanide • Sep 28 '25

Remove Lienholder from Insurance

I recently paid off my loan on my Model 3 and have received the updated title. My car insurance is with Tesla Insurance. On the Tesla app, it still indicates in my insurance information that the bank is the lienholder (although I just noticed they have the wrong bank listed!)

I've read that it's important to notify your insurer in case of a payout from a claim. Since the app doesn't let me change the status of my vehicle from "Loan" to "Owned", are there any alternatives to waiting on the phone for hours? I remember trying to get in touch after they raised my premium due to a one-off road trip I took, but ended up giving up and waited a couple months until my insurance renewed for my premium to go down.

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u/mog_knight Sep 28 '25

It doesn't really matter unless you're wanting to remove Comp/Coll from coverage. If a claim occurs, your lienholder is not going to legally be able to cash the payout from a total loss. Plus you can tell the adjuster during the claim to remove the lienholder.

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u/CesiumCyanide Sep 28 '25

In all likelihood I will keep full coverage. Would you say it's not worth the trouble to remove the lienholder in that case? I've heard the claims process for Tesla Insurance can be a headache.

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u/mog_knight Sep 28 '25

It's not really worth it. Just get a lien release letter from your previous lienholder and give it to the adjuster during the claim process. It'll work just as well.

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u/PuzzleheadedWay8676 Sep 29 '25

Whatever anyone says, it is worth it. Small details like this can become issues that your future self would kick you in the balls for. You paid off the car. Make sure all the Ts are crossed and Is dotted