Do You Need Auto Insurance to Qualify for a Title Loan?
The short answer is no, auto insurance is not required to apply for some title loan options. However, this depends on your lender. You can get a title loan without car insurance, but you would need to find a lender that does not require it with their application.
A lender’s requirements will vary, but most title loan lenders require car insurance at the time of inquiry. There is a reason for this requirement! There are other requirements to apply for most title loan places as well. Keep reading to learn more about auto insurance and emergency cash title loans.
Why Is Car Insurance Important If I Want to Apply for a Car Title Loan?
Car insurance is important for many reasons! Most states require you to have some form of insurance, which is called liability insurance. This helps to insure you if you hit someone else with your car. The reason why it is so important in terms of auto title loans is because of how title loans work. Title loans are secured loans that allow you to borrow off your car’s value. You will use your car’s title as collateral for the loan. If you get into a serious accident and you do not have insurance, your car could be out of commission.
Then, not only do you still have to pay your title loan back, but you will also need to pay for repairs! That sounds like a financial nightmare and is not worth the risk. If you are like most vehicle owners, you rely on your car to get you where you need to go. So if you value your car and are dead set on applying for a car title loan, don’t risk losing your vehicle! Make sure you are insured and pay your title loan back on time to keep access to your car.
It is better to have the right insurance form when you apply for a title loan to avoid this scenario.
Keep in mind that you can shop around for insurance quotes and choose an option that works for your financial situation.
How Do Auto Title Loan Places Check Your Auto Insurance During Your Application?
In some cases, when you fill out a title loan application, you will be required to provide a policy number associated with your current auto insurance provider. This policy number allows title loan agents to communicate with your provider and learn more about the type of coverage you have or do not have.
Even if you do not have insurance, you will still need to provide additional documents during your title loan inquiry.
What Documents Do Title Loan Places Ask You to Provide?
While some title loan options will require you to provide proof of auto insurance, there are other documents you will need to provide during the inquiry process. The most important document you will need is your car title, but other paperwork is also necessary! Take a closer look at the documents you will need to submit at the time of your title loan application:
- Proof of Residence: Title loans can be a great financial resource to utilize, but unfortunately, they are not available in every state. You will need to provide official documents that prove your address! Use recent credit card statements or utility bills to do so.
- Proof of Income: You don’t need a 9-5 job to apply for a title loan. Provide proof of income/alternative income through bank statements, pay stubs, or even disability award letters.
- A Valid Government or State-Issued ID: You will need to provide a driver’s license, passport, or another official government/state-issued identification card to prove your identity.
- Recent Photos of the Car: You can bypass an in-person inspection by simply submitting a few clear photos of your car! Take advantage of this convenience by applying for a car title loan serviced by LoanMart today.
- A Few References: You may be asked to provide a few personal or professional references of people who can vouch for your financial character. If you want, you can use both!
Don’t Wait to Apply for Title Loans that Check Your Auto Insurance!
Applying for a car title loan does not need to be scary or a hassle. In fact, it can be just as straightforward and simple as shopping online! Just choose the right title loan option that meets your needs and apply online today from your smartphone or computer.