Car title loans are an easy way to get fast access to cash when you’re in a bind. However, the loan company must first determine your eligibility, the loan amount, and the payback terms. Most of the time, a company will require you to carry comprehensive insurance coverage on your vehicle.
To receive a car title loan, you’ll be required to show certain documentation. These documents will probably include an original car title with your name listed as the title holder. Titles are mailed out by the bank or other financial institution once you’ve paid off your vehicle. You’ll also need a government-issued ID, such as a driver’s license or passport, to establish your identity as the owner of the vehicle.
When they’re considering working with lending companies such as LoanMax Title Loans, San Diego residents should be aware that most title loan companies also require proof of income, such as pay stubs, bank statements, or proof of disability income. In addition to these documents, you’ll need to provide proof of residence, such as a utility bill, to verify your home address. A current insurance card will also most likely be required before your loan is approved.
Mandatory Insurance Coverage
Most title loan companies require you to have current comprehensive insurance for the vehicle you’re using as collateral for the loan. They do this to protect themselves in case your car is involved in a collision. If the vehicle is totaled, they cannot sell it to repay the loan if you default. However, if you have insurance, the loan company will get any money you receive from the insurance company and apply it toward repayment of the loan. This protects both their interests and yours.
The amount of the loan will probably not exceed the payout you would receive if something were to happen to your vehicle. Therefore, if you’re in an accident, your loan will be paid in full. If you didn’t have insurance, you’d be without a vehicle, but you’d still have to continue making the loan payments. Some companies offer temporary insurance plans built into their loans. These plans slightly increase the monthly payments but might be a good option if you cannot obtain insurance elsewhere.
Reasons to Insure Your Car
Regardless of your need for a loan, you should do everything you can to buy insurance for your vehicle. By doing so, you protect yourself from several things. Insurance will cover any damage caused to other vehicles in a collision, and it will pay to have yours repaired. In addition, any medical bills incurred by you, your passengers, or others involved in the collision may be covered by your insurance policy.
If you need a quick, easy way to secure cash and you own a vehicle, getting a car title loan may be the right option for you. For fast, convenient car title loans, San Diego residents rely on the high-quality service from the team at Payless Car Title Loan. To find out how we can help you use your vehicle to secure a short-term loan, give one of our friendly representatives a call today at 619-600-0061.