When you take out a title loan, most lenders will let you keep and drive your vehicle as long as you make the agreed-upon payments. But what happens if your car is totaled and you have a title loan? The situation can seem overwhelming, but don’t panic! Your car insurance policy (something that most title loan lenders require for title loans) should be helpful, and your lender should be accommodating as well.
Here is what to do if your car is totaled, and you have a title loan. Along with that, you’ll find out more information on how title loans work in general.
Getting in Touch with Your Car Insurance ASAP
If your car is totaled, the first thing you should do is let your insurance provider know. If a car accident occurs due to someone else, make sure to have the other person’s car insurance as well. Both parties should let their insurance companies know about the accident.
Most auto insurance companies will ask for your statement and ask for photos of the damage. The good news is that most basic car insurance policies do offer full collision coverage/comprehensive coverage which will cover a vehicle if it is totaled. Keep in mind, every policy may differ when it comes to determining whether a vehicle is a total loss. Generally, if the cost of repairs are a huge percentage of your vehicle value, then your insurance company will consider it a total loss.
If the accident is someone’s fault, liability coverage from the insurance should take care of damages for both vehicles.
When your car is totaled, your insurer will come up with a fair market value for your car and should provide reimbursement for the vehicle.
Keep in mind after an accident your deductible will go up each month.
Once you have your insurance coverage sorted out, all that is left to do is figure out where to allocate your funds.
Let Your Lender Know About Your Car Being Totaled and You Have a Title Loan
Another important party to keep updated about your vehicle’s condition is your title loan lender. If your vehicle is totaled, you should let them know. Often there will be details in your title loan contract that a loan agent can go over with you. They should also be able to answer any questions that you may have about the process.
With your insurance covering your vehicle’s value, it shouldn’t be difficult to repay your title loan, especially if you only have a few payments left.
While waiting for your total loss claim to be processed, make sure to:
- continue making both your title loan payments and insurance payments.
- Keep your title loan company updated on the situation and on your totaled vehicle.
The Importance of Continuing Your Car Title Loan Payments
When taking out a title loan, you will have to sign a loan agreement. This means that you are legally bound to continue your payments. Your title loan lender may be able to work with you during an emergency, however, it is extremely important to continue your repayment Until the full loan amount is repaid. If your loan has defaulted it can have a huge impact on credit history, and on your credit score.
Be Prepared When Taking Out a Title Loan
A title loan is a large responsibility. If you don’t have the coverage you need, while repaying a title loan, and your car is totaled, will have to cover the title loan payments out of pocket. And so, in addition to being a safe driver, it will be extremely important to get a comprehensive coverage policy. Additionally, it may be helpful to understate how your specific state laws and how they work with auto accident laws.
When Looking for a Funding Start with Max Cash® Title Loans
For those who are researching how title loans work, and where to get one, Max Cash Title Loans is here to help. We are the #1 online nationwide title loan marketplace. Whether you have a new car, or a used one, we may be able to help. We help people connect with title loans for fast cash!5
Here are some of the perks that could come for borrowers when working with us, and the lenders that we work with:
- Flexibility throughout the process— all the lenders that we work with offer flexibility with several aspects of the title loan.4 And so, if an emergency does occur, you rest assured that they will try their best to work with.
- Competitive interest rates— from beginning to end, the interest rates with the lender that we work with could mean a great deal.4
- Affordable loans— get low monthly payments from beginning to end.4
- A simple 3 step process — in 3 simple steps you could get the funds that you need.
- No hidden fees — you can rest assured everything is transparent, and so there will never be any hidden fees.3
- No pre-payment penalties — pay your loan back as early as you would like without any fees or penalties.3
- Short term or long-term repayment— you could get a range of repayment terms when working with us and the lenders that we work with.4
If a title loan seems like the right option for you, or if you are looking to refinance your existing title loan for added flexibility, start with our team. Getting started is simple, head to our website and apply, or give us a call at: (855) 561-5626. Once approved, get the funds for a car title loan in as little as 24 hours!1 2