Auto Equity Loans have a lot of advantages for the borrower. Since they are secured by the value of the car, they are not based on your credit and they require very little paperwork. However, since they depend of having a vehicle as the guarantee that the loan company will get it’s money back, both you and the loan company will want to make sure the value of the car is protected. While that often gets done using insurance, there are options.
There are two basic types of auto insurance. Personal Injury Protection (PIP) with Property Damage Liability Insurance covers you against personal injury expenses, regardless of whether or not you cause the crash, up to the limits of your policy. Your PIP will also cover your child, members of your household, certain passengers who lack PIP Insurance as long as they do not own a vehicle. A minimum of $10,000 of PIP coverage is required by Florida law for all licensed vehicles. In addition, Florida also requires Property Damage Liability (PDL) insurance. This coverage pays for damages you or members of your family cause (and are liable for) to other people’s property in a crash involving a motor vehicle. Again the minimum coverage is $10,000. Operating a vehicle without these two coverages is against the law and there are significant penalties if you are involved in an accident or receive a traffic citation. You can not renew your license plate without the minimum insurance. Embassy Loans requires you to comply with the law by purchasing both PIP and PDL coverage.
The other type of insurance is called Comprehensive and Collision insurance. This insurance covers damage or loss of your vehicle by collision or theft. While not required by the State of Florida, it is required by any bank or lending institution anytime they loan money secured by your car. Embassy Loans requires that you have valid comprehensive and collision insurance prepaid for the term of the loan. This protects both you and Embassy in case a collision or theft destroys the value of your car. Your loan will be paid off.
If you are applying for an auto title loan, but you do not have the required comprehensive and collision insurance, Embassy Loans can provide another choice. You may purchase an optional collision wavier debt cancellation addendum, which is available as a voluntary option. If you decide to choose this waiver, it will be included in your monthly payment. While this addendum is not an insurance product and will not indemnify you, it will cancel the amount left due on your loan should the car be destroyed in an accident.
Debt Cancellation Addendums are just one more way that Embassy Loans provides you flexible loan terms. If you are in the market for an auto title loan, you owe it to yourself to talk to the leader in the field. Give us a call at 866-277-5797 or fill out the “Fast Cash Now” form on our website. One of our team members will be happy to help.