Pembroke Auto Pawn Loans Approval: The Role of Your Car’s Insurance - Instant Loans Canada

Blog

Pembroke Auto Pawn Loans Approval: The Role of Your Car’s Insurance

May 13, 2014

Many of us encounter emergency cash needs. This happens because of a variety of reasons: utility bills, accidents, hospitalizations and other unexpected expenses. Unfortunately, securing instant cash when we are caught in a financial crunch is somehow challenging. We cannot just go to a bank and secure a loan because banks rarely approve a loan application instantly. Most banks require lots of paper works and they take weeks to finish reviewing every borrower’s loan application. By the time your loan is granted, it is already too late. Furthermore, there is no 100% assurance that your bank loan application would be approved. There is a high risk for denial and you cannot afford to be denied of your cash advance especially when you are in a financial emergency.

Fortunately, however, there are already auto pawn loans in Pembroke. Auto pawn loans are instant cash solutions for borrowers who are in financial crunch. If you have vehicle with a clear title under your name, all you need to do is to visit a reputable auto title loan company and file a loan application. Most of the lenders would approve your loan application in an hour. This means you don’t have to wait for weeks to months to be able to manage all your urgent finances!

What’s great about Pembroke auto pawn loans is that during the loan repayment term, you can still drive your vehicle. The lender will just remain a lien holder of your vehicle. This means that the lending company will have a priority right over your car in case you default in your payment dues.

But When Does Your Car Insurance Come In?

Car insurance is very significant during your loan application. If your car does not have the insurance required by the lender, your loan application won’t be approved. Auto pawn lenders require insurance in all collateral given to them because when the car meets an accident, the loss will be for them to bear and that is such a big risk. To make the risk bearable, lenders require their borrowers to comply with their requirement of insurance coverage for the vehicles used as collateral for the loan.

When your car does not have insurance, the lender would probably let you secure the minimum insurance coverage before your loan is approved. In contrast, if your car insurance coverage is high, you may get some form of interest discounts from your lender. Having good car insurance then would enable you to save more money in the long run because the interest rate over your Pembroke auto pawn loan would be discounted.