Can I Get a Car Title Loan Without Auto Insurance?
Many people have faced a financial emergency that required funds to get them out of a bind. During moments like these, temporary loans become helpful in navigating unfortunate and tough situations. Title loans are a good example of loans that are short-lived and do not require a detailed credit score or a lot of money in your bank account to obtain. Title loans can be accessible in as fast as 30 minutes without a lot of stress. Such loans can range from $200-$100,000.
When getting a car loan, a vehicle’s title is used as collateral against the loan that is to be borrowed. If one fails to pay back his or her loan within the agreed timeline, his or her vehicle is automatically held by the lender.
Do I Need an Insurance Policy to Get a Title Loan?
As long as a vehicle has a title loan against it, the vehicle cannot be traded or sold. One is required to have comprehensive insurance coverage on a car that acts as collateral for a loan until the agreed amount is paid back. Remember that the loan company has to keep its assets safe too.
Once you have taken a title loan with your vehicle, it is technically the loan company’s vehicle until the full amount is paid off. A wrecked vehicle will have no value to a lender; therefore, the loan company will need full car insurance to cater for any damage that the vehicle might incur until the loan is paid back. Additionally, if the vehicle is held by a loan company due to failure of loan repayment, a case could be filed against the car’s loan policy so that any damage sustained by the vehicle could be repaired.
What Actually Happens if a Vehicle Lacks Car Insurance?
If your car incurs damages and your lender repossessed it due to failure to sustain your title loan, you will be forced to pay the damages sustained by the car out of your pocket. This may be very costly towards a car that you no longer possess.
This is why you should have a clear title. When you are asked for the title loan, you will have to provide documents with evidence of your car insurance policy along with the title. Your insurance policy should to be up to date and reveal a date after the date you took your car loan. Your coverage policy should also clearly show detailed information on your vehicle coverage.
At times, you are required to bring along documents that prove your policy declaration so as to provide full proof of your car’s coverage. The lenders will be able to call your car insurance firm if you do not provide full proof of your vehicle’s insurance. Not all companies that offer car loans are able to do this if you can provide the required information. In fact, some companies will give you better services if you meet all requirements. For more information or help, call us today at (602) 264-3640 or contact us online.