In order to obtain a car title loan in Phoenix, you will need to have a vehicle that can be used for collateral until the short term loan is paid off. Having insurance coverage on this vehicle is very important. This is because the lender wants to protect their investment, even for short term. Most Phoenix car title loan lenders will require that you have full coverage insurance on a vehicle if you borrow a loan that exceeds $2500.00. This will ensure that you and the lender are protected if something should happen to your vehicle while your loan is still in effect.
Why would you need insurance if you have a car title loan? Insurance is there to protect all of your personal items and possessions. If you don’t protect your investment, and you lose it, you will not be able to reclaim any of your money and may still be in debt as a result. Accidents are usually not avoidable so you have to be prepared for them when they do happen. Accidents can also be very costly, as they can also result in unforeseen high medical bills, property damage, and more. Debt can seem like an endless cycle. That is why some people rely on the services of a Phoenix car title loan lender.
Most full coverage insurance policies will include collision as well as liability coverage. It is a requirement from all states that you have a minimum of liability coverage on all vehicles driven on the road. This minimum coverage covers property damage and bodily injury of any other persons involved.
If you are approved for a car title loan, you are required to name them as the loss payee until your loan is paid off. Once you pay off your loan, you will be able to change this.