Getting Into a Car Accident Can Cause a Lot of Stress
When people need cash quickly during a financial crisis, they can apply for title loans using their cars as collateral. Unfortunately, the risk of getting into an accident also exists when you drive a vehicle with a title loan. Everyone may experience a car crash at some point in life, and all you can hope is that it doesn’t injure you physically.
If your car was recently totaled during a traffic collision, you might wonder what to do while you have a title loan. The best way to prepare for a situation like this is to understand how title loans work and pay attention to your vehicle insurance coverage. Handling unexpected events can be stressful if you don’t have much of a savings account. People with bad credit can inquire about online title loans to relieve their financial situations! Learn more about what to do if your car is totaled during a title loan agreement. You can start your inquiry for a title loan by using your smartphone or computer and visiting ChoiceCash.
How Do Auto Title Loans Work?
Before learning how to handle a totaled car that has a title loan on it, you must first understand how this financing option works. Title loans allow you to borrow money off of your car’s available equity by using the vehicle title as collateral. When lenders approve someone, they place a lien on the vehicle and remove it after repaying the money. Title loan lenders will run a credit check during your inquiry process, but there are other approval factors involved.
Instead, lenders care about how much equity is in your vehicle and if you have a steady income that gives you the ability to repay the loan. Title loans are secured because they use a person’s vehicle as collateral for funding. Traditional bank loans are unsecured because they do not rely on physical assets as insurance– they look at a person’s financial history to determine their approval for loans.
Big banks may deny you approval if your credit score is too low. Many people struggle with poor credit, and improving your score can take years. Only some have the luxury of time when they need financial assistance quickly!
Do I Need Car Insurance for a Title Loan?
Obtaining some is in your best interest if you don’t have car insurance. If something happens to your vehicle while you have a title loan, your loan terms can change because the car may not be in your possession anymore.
It’s illegal to drive in America without up-to-date car insurance, so most drivers should have some regardless of whether or not they apply for a title loan. Liability insurance is required in almost every U.S. state for car owners. This coverage protects you from bodily injury and property damage, so it’s crucial.
If you’re worried about getting into a car accident while you have a title loan, you can ask your insurance providers about comprehensive or collision coverage. This type can protect your vehicle from grand theft auto or getting into a big accident where your car is totaled.
Do I Need to Tell Title Loan Lenders About a Car Accident?
People apply for title loans because they are struggling financially and need help. Totaling your vehicle on top of this can add more stress to your life if you’re unprepared with insurance. If you get into a car accident, you should immediately contact your insurance provider to tell them what happened.
Additionally, you should contact the lenders to inform them of your circumstances, and they can discuss options with you depending on your specific terms and situation.
Make Sure You Have Car Insurance and Apply for Online Title Loans Today!
Getting into a car accident is not something you expect to happen, but it can happen at any time. No matter how safe a driver you think you are, human error is inevitable, and you cannot control what other drivers do.
The best way to protect yourself financially during a car accident is to have insurance! Most states require liability insurance if you are a car owner, and it’s also a good idea to get comprehensive or collision coverage.
Find out what your current plan covers and what different coverages protect you from! This way, you won’t have to worry about losing a substantial amount of money if your car is totaled. If you have a title loan when you get into a car accident, contact the lenders immediately to explain your circumstances. Start your title loan inquiry today by applying for a title loan serviced by a licensed agent and lender online or over the phone.