Title Pawn insurance requirements and other relevant information below.
Title pawn transactions are simply a way to borrow money, using your car title as collateral. In order to obtain a car title pawn, there are certain requirements you must have in line before you apply for your Atlanta title pawn. First and foremost, you must own the car and owe no monies on the vehicle (you must physically possess the title). Furthermore, this car title must not have any liens from other title pawn companies or other lenders still pending. This is called a clear title, and is a must for pawn transactions.
Secondly, your vehicle must have current and up-to-date insurance because essentially, the title pawn company has made an investment and car insurance is a way of protecting that investment when you receive your title pawn. For a pawn that exceeds $2,500, full coverage is typically required. This protects the lender should something unforeseen happen to the car during the period of the car title pawn.
Because accidents are usually not avoidable, should you get a title pawn and then have an accident, any personal possessions and damage to the car is covered. If you fail to maintain car insurance while you have a title pawn, you will not be able to claim any insurance money you receive and may still be in debt with no car and no title. This is why car insurance is essential to have before you apply.
All states require car owners to hold a minimum of liability coverage, if that car is being driven on the road, though this is the bare minimum of car insurance and really only protects the other driver should you be at fault. Full coverage includes liability and collision, meaning that both parties in an accident will be covered no matter who is at fault, including the company that performs your title pawn.
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