You need cash, fast, and have decided on a car title loan. Car title loans are a great option for someone needing a large payout, when banks can’t lend them money due to poor credit or lack of credit history. Car title loans offer secured loans that use your car title as collateral. When you no longer have your car due to an accident, or theft, you need to make sure you have the proper insurance coverage so that you are not caught off guard with a new expense. The best way to pick insurance coverage is to prepare for the many reasons why you might need your insurance to foot the bill.
Car Accidents and Grand Theft Auto
While we never wish such unfortunate events to happen to any of our customers, we want to make sure you have a guide to reference if you ever find yourselves in a situation without a car. It is vital that while you have a lien on your title that you maintain eligible vehicle coverage to prepare for any situation. You have to remember how title loans work. When you get a car title loan, you will need
- A car title to a qualifying car in your name,
- A government-issued ID (driver’s license, state ID, etc.)
- Proof of income (such as paystubs, invoices or bank account statements) to show your ability to repay the loan
- Proof of residence (such as a recent utility bill).
When you don’t have a car to go with the title loan, the terms of the loan have changed. You no longer have security over the loan, because you no longer have collateral.
No one wants to get into a car accident. No one wants to pay for a car accident when there’s no insurance. Why would you put yourself in a worse financial situation by not being prepared for the worse case scenario? You should be prepared so that the worse case scenario has the best-case conclusion.
Call Our Team
Take the first step and call our toll-free hotline to speak with a specialist.
Check Your State Laws and Insurance Company
You should ALWAYS let your insurance company know if you are getting a car title loan. They can help you pick the right coverage and make sure that you are covered in accordance to your state laws. Getting into an accident and not having the proper coverage can get expensive! You need to make sure your insurance can take care of your expenses, when you get into a car accident. It’s always best to be overprepared than underprepared. If there is body damage, you want your insurance to cover it, you don’t want to have to pay it out of pocket. If your car is stolen, you can have the insurance company pay the remaining balance on your title loan provided you have the right coverage.
Types of Insurance Coverage
Being informed about the types of insurance available can give you an advantage so you can get what you need when you talk to your insurance company. We will go over a few types of insurance available and which one might be the best coverage for your car when you have a car title loan.
- Liability coverage, which is required in almost every state
- Collision coverage
- Comprehensive coverage
- Medical payments
- Personal injury protection (PIP)
- Underinsured/uninsured motorist coverage
The best way to break down what each kinds of insurance there are, is to separate them into two kinds of insurance groups. There are insurances that cover you against any personal injury expenses, regardless of fault as determined by your policy. Then there is insurance that covers damage or loss of your vehicle by collision or grand theft auto.
Liability coverage is required in almost every state, so if you live in those states, you should know that the coverage includes damage you are legally responsible for including bodily injury and property damage. Comprehensive or collision damage is used for coverage with damage involved.
Also consider, different insurance companies offer perks such as roadside assistance with their different coverage levels. The best way to find out what the best coverage for your car is to contact your insurance and go over what terms they offer for coverage when getting a car title loan.
What is the Best Coverage for a Car Title Loan?
If you don’t have insurance, you might want to consider getting comprehensive and collision insurance so that if anything were to happen to your car, which if you remember, is being used as collateral, then you can have the insurance company cover the cost. Comprehensive and collision insurance will protect your car if there is any damage or loss due to collision or theft. This also includes any damage by natural disasters. You can ask your insurance provider what kinds of insurance they might require, or you can call one of our LoanMart agents to see if your insurance will offer the best coverage for your vehicle.
Where Do I get a Car Title Loan?
Being prepared before getting a car title loan can give you the biggest piece of mind. We try to make getting a car title loan simple and stress free. We know the reasons you are getting a car title loan can vary, and most reasons are usually stressful. By making the process simple and easy, you have less to worry about. You just need the following documentation:
- A car title to a qualifying car in your name,
- A government-issued ID (driver’s license, state ID, etc.)
- Proof of income (such as paystubs, invoices or bank account statements) to show your ability to repay the loan
- Proof of residence (such as a recent, unopened utility bill).
LoanMart has many options to apply for a car title loan, once you have your documents ready. You can give LoanMart a call at 855-422-7412, visit us at any of our participating stores, apply online on the LoanMart Website or use your mobile device to apply with LoanMart. When you have prepared with the right insurance coverage for your vehicle to get a car title loan, you can be prepared to get the best car title loan with the most competitive interest rates with one of the best nontraditional lenders in business, when you chose LoanMart1.
