Many people turn to title loans when they need fast cash. Title loans are flexible, and so, you may be able to get a title loan with no insurance but may need it during the loan. Max Cash Title Loans is ready to help you find the right auto title loan for your financial needs. With our network of lenders, we may be able to help find you the best deal on a car title loan. If you’re ready to start your title loan application, fill out a brief inquiry form online or give us a call today!
Do I Need Car Insurance to Find a Title Loan?
While your vehicle has a title loan, you also must maintain complete coverage auto insurance on the vehicle until the loan is paid back in full. Because a wrecked vehicle is of no value as collateral, the title loan company will require you to have insurance to cover any damage that might occur to the vehicle before the loan is repaid.
This is due to the fact that the title loan company must protect its asset and is considered the lienholder during the loan term of your title loan. Additionally, you cannot sell or trade-in that vehicle.
What if I Don’t Have Car Insurance During the Title Loan?
If your vehicle fails to sustain insurance and is repossessed with damage, the borrower will need to pay for this damage out of their pocket. This could amount to many thousands of dollars paid prior to the repair of a car you no longer possess.
This is the primary reason why having auto insurance throughout the title loan term is crucial, especially in the event that you don’t have the vehicle on a clear, lien-free title.
How Does an Auto Title Loan Work with No Insurance?
Title loans, or title pawns, are a type of loan that uses a vehicle’s title as collateral for a short-term loan amount. For the duration of the personal loan, the title loan lender retains the title with a lien on it as the borrower makes monthly payments on the loan. When the borrower repays the loan in full, the lender returns the name to the borrower.
While auto title loans are typically short-term loans, the loan terms are more flexible than other loan products such as payday loans or cash advances. Although some lenders do a credit check as part of this pre-approval process, a bad credit score or poor credit history doesn’t immediately disqualify someone.
That’s right, you don’t need good credit to apply! Additionally, because title loans are short term loans for short term needs, they also tend to be high-interest loans. However, the title loan companies and financial institutions we work with offer extremely competitive interest rates and no early loan payment penalties or hidden fees!
Accidents happen. They are an unavoidable part of life. This concept especially applies to being behind the wheel. When piloting a two-ton piece of machinery on a road where other such machines are going to be, there are bound to be slip-ups here and there that cause varying degrees of damage to the vehicles involved. This does not go away even when you have a car title loan. When one happens during a title loan repayment though, it can be a panic inducing situation, especially when it comes to wondering if your car insurance will be able to help you. However, Max Cash Title Loans is here to guide you through what to do when an accident happens.
What Happens Now?
So, you have just gotten into an accident while in repayment of a car title loan. What will happen with your car title loan from here? Seeing that your car might be undrive-able at this point, you may be unsure how your lender may no longer have as heavy of collateral to ensure that you repay. As you might be able to guess, even though your car may be completely totaled you will still be responsible for paying off the remaining balance on your car title loan. However, the way that this can be paid may have changed – either for better or worse.
Car Insurance Coverage
During this difficult and stressful time, it is incredibly important for you to be well aware of what your car insurance plan covers. Your insurance can help you through this trying time, but the kind of coverage that you are currently paying for is a crucial factor in deciding what will happen in your accident case as well as the future payments on your car title loan.
There are several different agencies out there with just as many plans per vehicle and customer. While this information might not help you out completely after your accident, it may help you in rethinking your financial planning for the future, should a similar situation come up.
The best-case scenario is for you to have full coverage of your car, as opposed to only liability coverage. This will protect you from damage and collision, rather than just liability which only protects you from liability of having damaged another person’s property or hurt the person themselves. Having full coverage will keep you protected, even if you still have a pending title loan when the accident happens. All of the coverage protection will be made much clearer when it is determined which driver is at fault for the accident.
If you currently only have coverage to take care of liability, then you might be in a position where you have to deal with the other person’s insurance agency on your own. When you do so, you will need to remain calm and collected since it is their job to ask you a longs series of questions.
Negotiating Vehicle Value, Insurance Liability, and Loan Coverage
When dealing with any insurance company, it is a smart idea to be aware of what your car’s value is. One of the best places to track down this information is by going to Kelley Blue Book. By going there, you can put in all the important information to figure out what your car is worth, especially if you do ever end up becoming involved in an accident.
If you still had a remaining balance on your car title loan when you got into the accident, your lender will expect you to continue to make payments on your loan even if the car whose title was being borrowed on was completely totaled. Once things with your case get settled down a bit, the settlement check will from there be absorbed and then applied to the remaining balance on your loan.
However, you are still going to be expected to pay off what you still owe on the balance. Your car title acts as the collateral for the car title loan and repayment is still a pressing obligation on your part, even if the collateral we are working with is no longer in existence. In several cases, car title loans require you to have full coverage for car insurance in order to ensure money is made available for repayment in case a car totaling accident happens.
What are the Advantages of Using Max Cash Title Loans?
When it comes time to apply for your auto title loan, Max Cash Title Loans has made the application process easy, secure, and as quick as possible. We are proud to be the number one title loan marketplace in the United States. We aim to get you financing the same day you apply or as soon as the next business day.
We provide a secure loan process, whether you decide to do this in person or online. Regardless of where you live, whether it’s Missouri, Nevada, or Mississippi, we aim to help.
Additionally, we also have a friendly and helpful customer support staff that are here to help you seven days a week. Furthermore, we work with a network of title lenders that don’t have any prepayment penalties, refinancing options, and competitive interest rates!
Get in Touch With Us
If you have any questions regarding insurance when getting into an accident while repaying a title loan or you need to get a hold of us for any other reason, you can get in touch with Max Cash Title Loans by: