If your car is totaled and you have a title loan, you may find yourself in what seems like a very overwhelming situation. What can be the most frustrating is when you are having financial difficulties and you encounter a new one, and everything seems to get out of hand. It is always good to be prepared in these situations by knowing what your insurance and your car title loan lenders expectations are and how they handle these situations. If your car is totaled and you have a title loan, you need to know the following.
First, let’s talk about how title loans work.
One of the key factors in finding out how much you can borrow for your car title loan is the condition of your vehicle. Your car title is being used as collateral for the title loan. Having a car title with a qualifying vehicle as your collateral is what makes the loan a secure loan and this is what allows LoanMart to lend out thousands of dollars quickly to those who need it.
When applying for a car title loan with LoanMart, 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 the collateral is totaled, this changes the terms of the title loan. You may no longer have a qualifying car. You need to make sure you notify LoanMart if you were involved in any kind of vehicle accident. You also need to remember to continue to make your loan payments, until your claim is settled, either by your insurance company or the other insurance company, if multiple vehicles were involved. You must remember that you are still responsible for making your payments, on time, even when your case is being investigate by insurance companies.
How do insurance companies deal with cars with title loans?
By having the right insurance coverage when your car is totaled, you can rest assured that the situation will be handled with little difficulty. You should also be prepared to know how to deal with the insurance company. Begin by finding out if your car is totaled and considered a total loss. Many insurance companies have different guidelines for determining whether your car is totaled, or a total loss. For example, if the repair cost is more that 80% of the car’s estimated value, then the car is considered a total loss. The percent of damage is determined by your insurance company and an adjuster and the definition of a total loss should be in the terms of your insurance contract. Once you have determined if your car is totaled, then you can figure out how much is owed and to whom. There is a similar process when you get into a car accident, but regarding a totaled vehicle, there are a few more things to 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 cases of a multiple vehicle accident, it will help with both insurance companies)
- Make sure you know what kind of coverage you have. You should be aware if you have full coverage or liability coverage, so you know who to deal in case your car gets totaled
Next, what do title loan companies expect if your car is totaled and you have a title loan
We always want you to feel comfortable with everything we do for you. We try to be transparent in what we expect in terms of your title loan expectations, so we will work with you with any questions you may have. The best way to get answers is to give us a call at 1-855-422-7412. This is only to be used as a guide for this kind of situation, but feel free to call us and we can walk you through the process so that you understand what LoanMart’s expectations are.
Finally, how you can protect yourself so that you won’t find yourself in this situation.
It would be easy to say, just be a safe driver, because we know no matter how safe you play it, you can never hold into account how another driver will drive. Rear end collisions and cross-traffic or side-impact accidents are some of the most common types of accidents and their most common factor is that there are two or more drivers involved. Even in situations where it’s your fault, due to inclement weather, such as rain, you should still make sure you have the correct car insurance coverage. There may also be state laws in accordance that may regulate how the insurance covers the vehicle. The borrower is always responsible for repayment, in cases where there is no liability or full coverage insurance. By making sure you have the right coverage for the right state and situation, you can avoid having to pay more out of pocket then you would have had you been prepared.
You can inquire about such coverage with your insurance or during the LoanMart application process. You can either give us a call at 1-855-422-7412, visit us at a participating store location, or even send us an email at email@example.com.