South Carolina Car Collateral Loans

Most car collateral loans do not require the car to be held by the lender. In the vast majority of cases, the lender only holds onto the car title and the borrower is permitted to keep and use the vehicle. Consequently, almost all title loan lenders require borrowers to provide proof of auto insurance. This is one way for the lender to protect its collateral.

Auto Insurance for Car Collateral Loans

If a borrower does not have auto insurance on the vehicle used as collateral for the title loan, an auto accident could devalue the vehicle or expose the borrower to legal action. To prevent this situation, most lenders will not grant a cash title loan to an uninsured driver.

Most states require some form of auto insurance by law, though specifics vary. In South Carolina, bodily injury liability (at least $25,000/person and $50,000/accident) and property damage liability (at least $25,000) insurance is the minimum required. Monthly payments on auto insurance fluctuate greatly by region and depending on the car being insured. Discount insurance is available almost everywhere, however. Anyone who is interested in taking out an auto collateral loan but does not have auto insurance can get the basic minimum coverage required by law and satisfy the requirements of most lenders.

Those looking for a reputable cash title lender in South Carolina should contact Wilshire Consumer Credit and apply online. Most applicants who have a clear vehicle title and auto insurance can be approved within minutes when applying online during normal business hours.