You have a car title loan and your car was stolen. It could have happened at work, at home, at the grocery store, but the fact is, your car was stolen. What happens if your car is stolen and there is a tile loan on your car? Short answer, it doesn’t change the amount you owe. When you get a title loan, you are putting your car title up for your collateral. Once you no longer have that collateral, you may need to pay off your loan immediately but if you have insurance for stolen cars, your insurance may cover this expense. If your car is stolen and you have a title loan, you need to remember a few things to get you through this situation.
Remember how a title loan works
Part of what makes LoanMart more attractive than other non-traditional car title loan lenders is that you get to keep your keys while you pay us back. Having viable transportation just makes sense. How can you afford to repay your title loan when you can’t make it to work because you don’t have transportation?
With an accident, your vehicle’s value may decrease significantly, when your car is stolen, it goes down to zero. When you no longer have a vehicle, the value of your title loan has changed. The reality of the situation is that you no longer have collateral to secure your loan. The reason we can give out such high dollar loans is because we have a way to guarantee you can pay us if you default. When you apply for a title loan, you will need to provide the following:
- A car title to a qualifying car in your name,
- A government-issued photo 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).
You can fax, email or text us pictures of your documents to us, and our helpful agents are available to help you, wherever you are.
File a police report and notify your insurance
Documentation is very important when it comes to any situation involving the law. In this case, a stolen car is a large item to go missing, and if you have a police report, it becomes easier to show you are not at fault. In fact, the minute you realize your car has been stolen, you should contact the police. When the police get there, make sure you get the following information:
- Ask for the report number
- Get the name of the officer on the scene
- Get the names and statements of any witnesses (check for any cameras or CCTVs in the area)
- Note the location of your car keys and the last place you saw your car before the theft
- List any personal property inside your vehicle (for yourself, the police report, and your homeowners or renters insurance- your car insurance may not cover lost personal items in your vehicle but they might)
With this information, you should next contact your insurance company. Let them know all this information and make notes of any information they ask for. If they haven’t already been notified, let them know you have a car title loan that you are paying off.
Let your title loan lender know what’s happening
Once you have documentation from the police, a police report number, and documentation from the insurance company, such as a theft claim number, you should contact your car title loan lender. Odds are, your insurance company will issue you a check for the actual cash value of your car or they may issue it directly to us as the lien holder. They should have been notified of any upgrades or custom parts, so you can get the right amount. When you have a lien on your vehicle, the check may also have the lien holder’s name on the check. This ensures that the lien holder is paid first, and you will be responsible for the remaining balance. For more information on how liens work, please refer to this link here. Transparency from both parties assures that the repayment process goes smoothly. You don’t need any more hardships on your shoulders.
Prepare and protect yourself from any potential situations
This goes without saying, you should always protect yourself, and your loved ones before an unfortunate situation happens. consider. Being prepared with this information will help you get the situation quickly under control.
- Know the value of your vehicle to better prepare you when you deal your insurance company in case your insurance company must make a settlement. This can also help you get an idea of how much your insurance can cover over the balance you have on your car title loan.
- Make sure you know what kind of coverage you have. You should be aware of your state laws and how they reflect on your car title loan in cases of car theft. Some states have different regulations for car insurance so make sure you check your insurance and have the appropriate coverage
Then best way to deal with having your car stolen when you have a title loan is to be prepared. No one ever wants to find themselves in this situation without having the right resources to take care of their problem. Most of all, you need to make sure your possessions are safe and insured to prevent any other hardships. We want you to be comfortable during your financial situation and we can only provide tips on how to protect yourself and your car.
When you get a car title loan with LoanMart, we work with you to find solutions to your life and monetary difficulties. Give us a call at 1-855-422-7412, visit us at any of our participating stores, apply online or use your mobile device to apply with LoanMart. When you are ready to apply, then you can begin the application process whenever you are ready and get cash when you need it.