Title loans are flexible and convenient ways to access fast funding during a financial emergency. While title loans are flexible, it may not be possible to get a title loan without insurance because most lenders will ask you to provide proof of it in order to get approved.5
If you have a title loan on your vehicle, it’s important to have extensive auto insurance coverage on the vehicle until the loan is paid back in full. The title loan company will typically require you to have insurance to cover any damage that might occur to the vehicle before the loan is repaid.
When you take out a title loan, the lender places a lien on your car’s title. They a legal right to your vehicle throughout the duration of the loan. A wrecked vehicle is of no value as collateral for the loan!
If you want to get a car title loan with no insurance, keep a few things in mind. Firstly, if you have no insurance and your vehicle sustains serious damage, you will need to pay for this damage out of your pocket while. 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!
How Does an Auto Title Loan Work with No Insurance?
Title loans, otherwise known as car title loans, are a type of loan that uses a vehicle’s title as collateral for the loan. Title loans work by allowing you to borrow against the value of a qualifying car or sedan. You can typically borrow against the value of a Honda Civic, Ford F-150, or another eligible car! Although some lenders do a credit check as part of the title loan pre-approval process, a bad credit score or poor credit history doesn’t immediately disqualify someone from approval.5
Accidents happen, even if you are a safe driver. Over 36,000 crashes happen per day according to the National Safety Council. This risk does not go away even when you have a car title loan.
It’s important to have insurance on your car whether or not you decide to take out a title loan!
Max Cash® Title Loans is ready to help you find the right auto title loan for your financial needs.2
Need a car title loan without insurance? With our network of lenders, we may be able to help find you the best deal on a car title loan and explore your options.4 If you’re ready to get started, fill out a brief inquiry form online or give us a call today!5
What Do I Need to Get a Car Title Loan With No Insurance?
As mentioned above, you typically can’t get title loans with no insurance, but there are exceptions. Most lenders will ask you to provide that during your application, but not all do. On top of proof of insurance, you will often need the following documents to get approved for a title loan:5
- Car Title in Your Name (Must be Lien-Free)
- Valid, Government-Issued Photo ID
- Proof of Income and Residence
- Recent Pictures of the Car’s Interior and Exterior
Your eligibility for a car title loan is largely based on your income and the value of your vehicle. Your car must have a qualifying about of positive equity and you will need to be of legal age to apply for a car title loan! If you have any questions about what you’ll need to get approved for a title loan, don’t hesitate to reach out to a loan agent at 855-561-5626 today.1 5
What Happens If I Get into an Accident With No Car Insurance Coverage and a Title Loan on My Car?
If you get into a serious accident during the title loan repayment process,your car might not be in working condition. Even though your car may be completely totaled and given a salvage title, you will still be responsible for paying off the remaining balance on your car title loan. Additionally, you won’t have a car to drive until your vehicle is restored! That can put a lot of financial pressure on you.
Negotiating Insurance Liability and Coverage
As mentioned above, 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. Depending on your car insurance coverage, your insurance company may cover the cost of the repairs.
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. Unfortunately, repayment is still a pressing obligation on your part, even if the collateral is no longer roadworthy. In several cases, car title loan lenders will require you to have full coverage car insurance in order to ensure money is made available for repayment in case your vehicle is totaled in an accident.
Car Insurance Coverage for Title Loans
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 company may be able to help you financially in the event of an accident. But, it depends on the type of coverage that you have.
There are several different agencies out there with just as many plans per vehicle and customer. 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 coverage. Liability coverage only protects you from liability of damaging another person’s property or a person. Having full coverage will keep you protected, even if you still have a pending title loan when the accident happens.
What are the Advantages of Using Max Cash Title Loans?
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. If you are approved, it’s possible to access your funds on the same day or by the next business day.1 2 5
We provide a secure loan process, whether you decide to do this in person, over the phone, or online! Additionally, we also have a friendly and helpful 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 and offer competitive interest rates! Submit an inquiry form online or give us a call today to get started.3 4 5
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:
- Calling or texting us directly at 1-855-561-5626
- Sending us an email at info@maxcashtitleloans.com