What Are the Chances Of Getting A Title Loan Without Auto Insurance?Fast Action Finance SEO
Every once in a while, you will be faced with financial situations that require you to raise funds for dealing with emergencies. Short-term loans happen to be the most reliable solution during these times. This is because they do not involve credit checking that is commonly associated with traditional long-term bank loans. The best part is that you can qualify for the loan and get it the same day. As good as they sound, short-term loans typically come with a trade-off, such as involving collateral.
A title loan is the type of loan that is given out to borrowers on condition that they provide a vehicle as collateral. When you opt for a title loan, you will simply be exchanging your vehicle’s equity for quick cash. The loan comes with its own terms and conditions. However, it is really nothing to worry about if you keep your side of the bargain.
Is car insurance necessary?
First, you need to understand that once your automobile has a lien against it, it is no longer considered debt free until the loan is paid off. Secondly, you will be required to have full auto insurance coverage for your car until you have cleared all the debt. Lenders are not only interested in providing you with money but also protecting their assets. That is why you have to allow the lender to place a lien on your vehicle. A wrecked automobile is of no value as collateral to lenders. As such, lenders will require car insurance coverage that will cover the vehicle until the debt is finally paid off.
You will be required to provide proof of insurance by lenders before getting the title loan. In addition, it should be up-to-date with a clear indication of its renewal date. The policy should also clearly show the type of coverage that you have for your car. In case you do not have insurance proof card, lenders will obtain the information by getting in touch with your insurance company. Note that not all lenders will seriously follow through with auto insurance. However, if you have all the information required by lenders, it will be smooth when applying for secured loans in Mississauga.
Taking more than one title loan
First, you must provide proof that you own a vehicle. If your car has a lien against it owing another title loan lender, you cannot get a title loan with a second lender. However, you can get additional loans from the same lender using the same vehicle if there is ample equity and you have valid insurance.
Title loans are the best solution for quick cash. However, it is important to know what is required by the lenders before taking out the loan. You need to know the most effective payment strategies that will help you clear the entire debt and have the lien removed from your vehicle. With the right knowledge, you will always make the right choices even when faced with difficult financial situations.
Risks of driving without insurance
Driving without insurance has many risks and pitfalls on its own and nothing to do with loans. Depending on what jurisdiction you live in, the ramifications of being pulled over by the police with no insurance can be very costly. You can have your vehicle impounded which will result in towing and storage charges. In addition, many governments levy onerous fines and penalties on those driving without insurance. It has been reported that some individuals have been hit with fines of up to $20,000. This is compounded by insurance premiums increasing dramatically for the next few years. And then there is the risk that you may hurt or kill someone and be sued without the protection of insurance.
Rather than risk driving without insurance speak to lenders and tell them you do not have it and many times they will lend to you and direct some of the loan proceeds to the insurance company to buy your insurance. There are options for you to get a loan by such avenues as Title Loans, Repair Loans, Storage Loans (using your paid off motorcycle, watercraft, etc.) and Collateral Loans (using fully owned equipment, classic cars, etc.)
The bottom line is, do not drive without insurance because having an accident can end up ruining your life. Drive safely and insured.