Title Loans With No Insurance

In America, almost half of the states allow title loans, but is it true that not all of them allow you to borrow money without insurance on the vehicle?

When you search the internet, it appears that there are no states that bar you from taking out a title loan with no car insurance, but there are a few exceptions.

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However, if you need a title loan, there are less hindrances than most borrowers first expect.

Why Title Loans and Not Bank Loans?

One of the main reasons that people will seek out a title loan over a bank loan is the quick and convenient process. Unfortunately, bank loans versus title loans with no insurance can take a considerable amount of time just to find out if you have been approved.


On top of this, the amount of paperwork required can take awhile to compile for a bank loan. One other drawback is that, even if you have a good credit history, you can still not be approved for a bank loan.

Alternatively, a title loan application only takes a couple of minutes online, and you are given the loan amount based on the title instead of your credit history.

Why Some States Ask for Car Insurance on Title Loans

Interestingly, most title loan companies do not require car insurance in any state for their purposes or by law. In fact, Tennessee is one of the only states that requires full-coverage for any title loan amount.

Nonetheless, you could be asked to provide proof of insurance because the title loan business wants to know you are insured. This is especially true if the loan amount exceeds $1,000 or more.

How to Get Insurance on Your Vehicle for a Title Loan

If you find that your insurance coverage is not high enough because your state requires full coverage (for example, the state of Tennessee), more must be obtained before the title loan application can be completed.

Do You Need Insurance to Get a Title Loan?

In some cases, the title loan company will offer to give you the insurance you need on the vehicle. Nevertheless, some states will not allow the loan company to also offer you insurance.

One alternative that exists is to buy insurance online and have the title loan company approve your insurance coverage from the computer printout.

Other Ways to Get a Title Loan Without Insurance

While the title loan office may not be able to award you the full amount without insurance, there are a few other options that they might offer. The first is to give you a loan with a lower amount and it is essentially a payday loan.

The second option is to give you a title loan without insurance on another piece of property that does not require insurance such as a boat, motorcycle or ATV.

Finally, there is a title loan that is based on a car that is going to be salvaged or scrapped for parts.

Car Equity Title Loans Versus Salvage Title Loans

When the value of a car is in question, it may not be eligible for a car equity title loan that gives you cash based on the Kelley Blue Book value of the vehicle. An alternative to this is a salvage title loan for title loans without insurance.

This type of loan is common when a car has been wrecked, scrapped and needs to be replaced by purchasing another car.

In other words, if you need extra money to buy a new car, see if the scrapped title can be used at a title loan company to bring in extra money for the down payment.

Things to Bring to the Title Loan Office

In some cases, the car title and state-issued identification is all that is required to get a car loan. This is why so many websites offer an estimate for car title loans no insurance within minutes since the car title tells all the information the lender needs to know.

When you get instructions from the car title lenders, they will let you know if you will need to bring in other types of information. Regardless, the one thing you can count on is that no one will run a background check on your credit history.


Other Helpful Paperwork to Increase Title Loan Amounts

One of the worst things about applying for a title loans with no insurance at a business is having to go back and forth to your home to find all of the required pieces of paperwork. This is especially true if you are traveling from out-of-state or far from home.

To get a better understanding of some items commonly required to get a title loan, take a look at the list below.

  • A set of spare keys that match the vehicle on the title
  • Social Security card
  • Copies of recent bank statements
  • Car title (no copies)
  • A recent piece of mail such as a utility bill
  • Car registration
  • Proof of insurance
  • Recent payroll stubs
  • References or potential co-signers

Simple Rules about the States that Allow Title Loans in America

Do you still have questions about insurance as it relates to title loans in your state? For your convenience, we have listed a few of the laws associated with each state that offers a title loan.

Keep in mind that title loans with no insurance companies can still ask you for proof of car insurance based on their own needs or high loan amounts and not because it is required by law.

Alabama – According to the Pawnshop Act, it is prohibited for a title loan company to sell insurance to a customer on the customer’s vehicle.

Arizona – No title is required in the legal language of Arizona’s Motor Vehicle Time Sales Disclosure Act.

California – Unique laws in this state mean they are not allowed to loan smaller amounts of money due to small loan laws.

Delaware – A vehicle title is required for a loan by this state’s Code Title 5 laws. Title loan businesses are prohibited from advertising a “teaser rate.”

Georgia – In this state, they are not allowed to advertise a title loan as a loan and in order to complete the application, a title is required.

Idaho – Special restrictions in this state include forbidding a loan that is worth more than the vehicle itself. The loan can only be placed with a cleared title and the title itself is required before the loan is completed.

Illinois – The maximum loan amount is $4,000 and can be limited based on income. A car title is required to finish loan paperwork.

Kansas – Loans in this state are structured as open-ended credit to comply with state laws.

Louisiana – The minimum award amount in this state is $350 and the loan must last for more than two months.

Mississippi – Maximum loan awards are $2,500. Other restrictions include that the loan cannot be paid off with another title loan. The loan giver cannot sell insurance to loan recipient and a title is required at the time of application.

Missouri – Loan maximums by law are $5,000 and a title is required. There is also a restriction on using words that related to pawn or pawnbroker businesses.

Nevada – One of the only states that allows you to borrow the full value of the vehicle. One unique law they have is that the lender cannot be added as a lien holder on the title.

New Hampshire – Applicants can get up to $10,000 and this is one of the few states that does not require a title. Despite this, they will still want to see the original title.

New Mexico – The maximum loan amounts for state is $2,500 and a title is required.

South Carolina -Like California, South Carolina is not allowed by law to award small dollar amounts for title loans.

South Dakota – Title is required.

Tennessee – A clear title is needed to place a title loan of $2,500 or less. In this state, it is prohibited to give a loan on a vehicle with no insurance.

Texas – This state does not have a cap that restricts the loan amount, but a title is required.

Utah – Only one loan per vehicle is permitted, and you must have a title and a job to apply for the loan.

Virginia – There are some restrictions found in Virginia and nowhere else. For example, you must file the lien with the DMV, you cannot be charged prepayment penalties, you must have a title to the vehicle, but you can get up to 50-percent of the value of the car.

Wisconsin – This state stands out because they prohibit the loan businesses from requiring a second set of keys from you that they keep. However, you can get up to $25,000 on your vehicle if it is worth at least twice this amount.