Auto Title Loans and Vehicle Insurance

Daniel Joelson

Daniel Joelson

Total Posts: 346

Published Date: January 23, 2024

Daniel Joelson has been in the consumer finance space since 1994, he has helped to develop underwriting manuals for the financial sector. With a vast amount of Knowledge in consumer finance, he has been writing articles for all types of loans. With his knowledge, he is able to help many people to answer different financial problems.

Auto title loans offer borrowers a way to access quick cash by using their vehicle’s title as collateral. It is crucial to understand how these loans can affect your car insurance coverage and premiums.

Insurance and title loans are not always required by some lenders, it will depend on the lender, and the loan amount.

Most auto title loan providers require borrowers to have comprehensive and collision insurance coverage on their vehicles. This ensures that the vehicle, used as collateral, is protected against loss or damage.

Before approving the loan, the lender may request proof of insurance. By taking out an auto title loan, the lender becomes the lien holder on your car until the loan is fully paid off.

They may need to be added as an additional insured or loss payee on your insurance policy.

This allows the lender to receive payment directly from the insurance provider in the event of an accident or loss.

 Insurance and Title Loans

Reviewing your insurance policy is critical to ensure compliance with the lender’s specifications for an auto title loan.

Failure to maintain the necessary insurance or adjust your deductibles as required could violate the loan agreement terms.

While auto title loans themselves do not directly impact insurance premiums, modifications to your insurance policy or coverage scope may indirectly affect premiums.

Adding the lender as an additional insured or altering coverage may result in premium changes. Consulting with your insurance company can provide insight into potential premium effects.

Insurance and car title loans
Auto title loans and insurance

Vehicle Modifications and Loan Compliance

Some auto title loan providers may prohibit borrowers from making modifications to the vehicle while the loan is active.

This is to safeguard the collateral’s value and marketability. Failure to inform your insurer or lender about modifications could lead to coverage issues or even trigger loan repayment.

Insufficient insurance coverage with an auto title loan can have serious consequences. If your car is totaled or damaged and your insurance does not cover the full cost, you may still be liable for repaying the loan in full, leading to financial difficulties and potential loss of the vehicle.

Ensuring Compliance and Financial Security

To avoid negative repercussions related to insufficient insurance coverage, maintain communication with both your insurance company and auto title loan lender.

Notify them of any vehicle modifications, changes to your insurance policy, or accidents that could impact the loan or insurance claim process.

Understanding the insurance requirements set by the lender and maintaining adequate insurance coverage are crucial steps to safeguarding your financial security and the lender’s interest in the vehicle.

At TFC Title Loans, we are dedicated to assisting you in getting the best auto title loan with flexible repayment plans tailored to your needs.

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Disclosures

DISCLAIMER: As our policy to make sure you know what we do and what are our limitations, we offer you these disclaimers. We are NOT A LENDER and we do not make short term cash loans or credit decisions. We are a referral service and work only with licensed lenders/brokers.

We may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. We do not offer or service student loans.

*Loan amounts by the lenders vary based on your vehicle and your ability to repay the loan.

*Since we do not lend money directly we cannot offer you a solicitation for a loan, except in the state of California. In all other serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans and Auto Title Loans are not available in all states and all areas.

*Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan.

*All lenders are responsible for their own interest rates and payment terms. TFC Title Loans has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

*The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you.Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically larger loans or higher risk loans use a GPS.

*In some circumstances faxing may be required. Use of your cell phone to receive updates is optional.

*Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

*Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

*Trading Financial Credit, LLC dba TFC Title Loans, Car Title Loans California, Dineromax. If you are using a screen reader and are having problems using this website, please give us a call at 1-844-242-3543 for immediate assistance.

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