Like it or not, insurance is often a necessary part of life. Whether it’s to cover medical expenses, car accidents or unforeseen damage to your home, insurance can cover many of the expenses and repairs resulting from your claim. If you’re looking for an auto title loan, where you’re using your vehicle as collateral, you may be wondering – do you need car insurance to get an auto title loan?
What Are the Different Types of Coverage?
When it comes to your car, there are basically six types of insurance coverage. Some of these may be required by your state and it’s important to check with your local DMV before buying your car. You’ll need to provide evidence of your insurance when registering your vehicle or if you’re stopped by the police.
Depending upon the state, if you’re repeatedly convicted of driving without insurance, you could be fined thousands of dollars, lose your license, or even find yourself in jail for up to five years.
The six types of coverage are as follows:
- Bodily Injury Liability
- Property Damage Liability
- Personal Injury Protection and Medical Payments
- Underinsured and Uninsured Motorist
Some form of liability insurance will be required by your state, but the minimum requirements will vary.
Bodily Injury Liability covers third parties injured as a result of an accident that’s deemed to be your fault. For example, if you drive through a red light and hit a turning car, bodily injury liability will pay for any medical expenses the driver and passengers of the other vehicle may have.
Property Damage Liability is similar, but covers the other driver’s vehicle and damage to any other third party property. For example, if you fail to stop in time and hit the car in front of you, that car could be shunted forward and hit the car in front of that. In this situation, your property damage liability insurance will pay for repairs to both those cars.
Personal Injury Protection and Medical Payments insurance covers any medical expenses for both you and any passengers in your vehicle. It can also cover any loss of earnings or even any funeral expenses if someone were to lose their life.
Collision covers your own vehicle in the event of an accident and is often used when you either hit a stationary object or damage is caused by another vehicle. For example, if you slide off the road in icy conditions, hit a road sign and dent the side of your car, collision insurance would cover the repair.
Comprehensive coverage is your catch-all insurance for most other things that can happen to your car. For example, loss, theft, fire, vandalism, damage caused by falling objects (such as hail or tree branches during a storm) or even animals.
Lastly, Underinsured or Uninsured Motorist insurance covers you in the event you’re hit by a driver with either too little or no insurance.
Something else to remember is this: depending on the level of coverage and your insurance company, you may have a deductible you’ll need to take into consideration. For example, if you have a $500 deductible and someone causes $2,000 worth of damage in a hit and run accident, you’ll need to pay $500 toward the repair and the insurance will pick up the remaining $1,500.
Do You Need Car Insurance to Get an Auto Title Loan?
The short answer is yes, because you’re legally required to have insurance. However, whether the lender asks to see proof of the insurance will depend upon the lender and their policies.
For example, a lender might require all potential borrowers to provide proof of insurance during the application process. Another lender might only require proof for valuable vehicles or for high loan amounts. Other lenders might not ask to see proof, regardless of the vehicle’s age, value or loan amount.
If, for whatever reason, you don’t currently have insurance and the lender is requesting proof, the lender may be willing and able to provide insurance for you. This could be temporary until you arrange your own insurance, but if this happens, you’ll also need to provide proof that you have your own insurance before the lender cancels theirs.
The lender will add the cost of the insurance premiums to the loan, so you’ll want to arrange your own insurance as soon as possible.
Incidentally, you may find it’s stated in your contract that you’re required to have insurance and that the lender can add their own – and charge you for it – if you fail to provide any. The lender will do this as a means of protecting the collateral and ensuring they’ll receive some payout in the event of an accident.
Who is the Best Lender for an Auto Title Loan?
There are, of course, a multitude of auto title loan lenders in the United States, but they don’t all operate the same way. One lender might be willing to lend you more money but at a higher interest rate while another might offer the opposite. How do you know if the lender is offering you a good deal?
Similarly, you might have some concerns about how trustworthy the company is. How well established are they?
With a ChoiceCash Auto Title Loan, serviced by LoanMart, there’s no need to be concerned. ChoiceCash auto title loans are offered across the nation and have helped thousands of borrowers find financial security.
A ChoiceCash Auto Title Loan also has a number of benefits over many other title loans. For starters, you can be pre-approved in minutes by going to www.choicecash.com or by calling (855) 914 2945 toll-free and speaking to a loan specialist.1
There’s no need to drive anywhere for an on-site inspection; by simply submitting the required photos of your vehicle (either via the secure website, email or even SMS text message) your loan officer can verify the condition of your car.
One other huge benefit to a ChoiceCash Auto Title Loan, serviced by LoanMart, is the ability to have your monthly payments reduced. 2 Unlike other loans, where you could be paying out the same amount of money every month for years, a ChoiceCash Auto Title Loan can reward your excellent payment history by giving you a little money back. 2
When you make your payments on-time, your loan could be eligible to have its interest rate reduced. Your monthly payment could then go down as a result, with your payments potentially going down by nearly half over the lifetime of the loan. 2
As an added bonus, you could also be eligible to borrow more in the future – and you won’t need to start again with a higher interest rate. 2 Your new loan will begin at the same low rate you had before, so you can pick up right where you left off and continue saving money! 2
To start your application, visit www.choicecash.com or call (855) 914 2945. After answering a few basic questions about yourself and your car, your loan officer can tell you in minutes if you’re prequalified and how much you can borrow.1 The entire loan process can be completed in hours and without ever leaving the comfort of your home. 1
Regardless of the reason why you need emergency cash, don’t wait until it’s too late. Call or click now and get the money you need today! 1