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Do You Need Insurance for a Title Loan?

October 08, 2018

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InsuranceAs unsettling as it is to think about, there are a number of situations that could put you in the stressful position of needing money fast and lacking an immediate way to get it. In such an emergency, a car title loan could be the best option to get the money you need. It saves a lot of the paperwork and hassle entailed in many of the alternatives available and becomes an ideal option if your budget is limited. With this decision, however, you have to be mindful of the fact that the loan rests on the value of the car. It becomes imperative to preserve your vehicle's good condition because it represents your personal property as well as the means to secure your loan.

Even though basic insurance policies are mandatory in most states, some people feel that getting insurance coverage specifically for a car title loan involves a lot of unnecessary complications. This belief might come from instances in which an insurance policy doesn't cover the value of a car in a loan, generating an additional expense rather than avoiding it. This, along with the fact that some states don't sanction car title loans without insurance, seems to be enough to keep people from investigating further into insurance policies to support their title loan.

All You Need to Know to Decide on an Insurance Policy

To dispel all doubts on the matter, we must delve into what car insurance entails for the borrower. Regular car insurance policies offer financial protections in the aftermath of collision or theft, covering damages caused to the vehicle and the injury expenses for the owner during the incident. If you plan to get a car title loan, insurance coverage serves as a backup that guarantees you won't become saddled with more expenses if something happens to your vehicle. If your car gets stolen or sustains damage in a crash, the resulting costs will be covered in the insurance policy and your loan will remain unaffected, with minimal change in your budget. This outcome depends on the foresight to make the appropriate insurance policy to cover the cost of your vehicle.

Requirements for insurance policies vary, with different legal demands for each state. There are also types of coverage policies with different procedures and regulations involved. The insurance policies you must be familiar with to get a car title loan are:
  • Personal Injury Protection (PIP): It is mandatory in Florida and almost every other state of the US. It's designed to cover the expenses for personal injuries that you or your passengers may suffer during a car accident.

  • Liability Insurance: There is a distinction between Bodily Injury Liability (BI) and Property Damage Liability (PD). The former covers the expenses for injuries other people suffer in accidents caused by you or someone that's part of your insurance policy, while PD covers property damages from collisions caused by your vehicle. Both are mandatory in Florida and almost every other state.

  • Collision Coverage: This specifically covers any damage your vehicle sustains during a collision of any kind, whether caused by other vehicles or other objects.

  • Comprehensive Coverage: Excluding collisions, this policy covers the costs for any incident that results in damage on the car, including theft, vandalism, and damages caused by extreme environmental conditions.

  • Uninsured Motorist Coverage: Covers any damage you may sustain from an uninsured driver. Similar to the liability insurance, it's divided between bodily injury coverage for any physical injury and property damage coverage to compensate damages to your vehicle.
Insurance ProviderFor the purpose of getting a car title loan, there are some obvious policies to start with. Collision coverage and comprehensive coverage are the surest options to protect the costs of potential damage or theft. Depending on the loan you wish to get, it is always sensible to discuss your options with your insurance provider. Consumer Reports recommends raising your deductibles to get a more affordable insurance policy, provided that the insurance company is reliable in its service.

Most insurance companies require the car's identification number, your driver's license, bank information proving you are fit to pay a particular insurance policy, and proof of residence.

Insurance Coverage Will Always be the Safest Alternative for You

Among the fundamental benefits of getting proper insurance coverage, its importance grows when you consider how it simplifies the process of getting a car title loan. It strengthens the trust between you (the applicant and policyholder) and the company securing the title loan. Certain companies offer alternatives for people lacking the proper insurance coverage, such as customized insurance plans in addition to their loan services. Other options include small loan amounts in exchange for your car's documentation. These options are limited by the laws of each state and follow a different process according to the plans designed by each company. At the end of the day, the transaction will be more straightforward if you count on the proper insurance policy to support the loan. Your property and the company's investment will be protected, and you will save yourself a lot of stress in the process.

Perhaps the most important factor comes from the contribution insurance coverage will make to your peace of mind in the long run: you will always breathe easier when you have a safety net to help you face any unexpected emergency.

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The Fastest and Most Reliable Way to Get a Title Loan

If you want to get a car title loan without all the paperwork and procedures stressing you out, Quick Cash Auto Loans is here for you. We want to make sure you feel comfortable with your decision throughout the experience, so we ensure a straightforward process where we assess your vehicle and help you find the loan amount you qualify for. You can keep your vehicle even after you have received the loan so you don't have to worry about making significant changes in your schedule in order to complete the process. Rest assured we are always working with your best interests in mind. Give us a call at (786) 600-3411 or fill out the contact form and we will clear out any question you may have.

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