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Fast Title Lenders > Can you get a Title Loan without Insurance?

Can you get a Title Loan without Insurance?


A common question when searching for a title loan is can you get a title loan without insurance? The answer is “it depends”. Unfortunately there is not a simple clear yes or no answer.

The fact is that title loans vary from state to state and lender to lender. Also, the type of car insurance also varies (i.e. liability or collision).

To answer the question, we need to look at the factors that go into deciding whether or not to have a title loan without insurance.

Reasons for Title Loans with Insurance

There are a few reasons for requiring vehicle owners to have insurance prior to getting a title loan. The main two are:

  1. It is a state requirement – depending on what state you live in it may be a requirement to have insurance on any vehicle that is driven in that state.
  2. Lender Policy – some lenders make it company policy to only lend on insured vehicles. The vehicle is collateral for the loan, so if something happens to it then the value will be reduced.

To figure out if your state requires insurance for a title loan take a look at their requirements. In some cases you may be able to get an auto equity loan without insurance.

Types of Vehicle Insurance

Car Insurance Online
If you need car insurance there are many online options.

Generally, if you are driving a vehicle, it is a good idea to have some type of insurance. This protects you and other drivers from excessive repair costs in case of an accident. There are two main types of car insurance:

  1. Liability insurance – this protects other drivers in case of an accident.
  2. Comprehensive – this protects your vehicle in case of an accident, theft, and other damage.

Comprehensive insurance is more expensive than liability. The extra cost covers other damages from theft, vandalism, and a variety of other circumstances.

What type of Insurance do Title Loans Require?

The type of insurance required for a title loan can depend on multiple factors. These include:

  1. Lender policies
  2. State regulations
  3. Loan size
  4. Other

The lender policies and state regulations usually will vary. This depends on where you are located and which lender you choose for your title loan. The loan size is explained below.

Liability Coverage Insurance Requirement

For smaller loans, the lender and title loan company will have less of a risk should something happen to the vehicle. In these cases sometimes liability insurance is sufficient.

Full Coverage Insurance Requirement

For larger loans, most lenders will require some form of insurance. The reason is simple – if something happens to the vehicle the insurance company will cover the cost.

Larger loans may require full coverage or comprehensive insurance. This means the lender gets reimbursed should something happen to the vehicle.

Insurance Claims and Lienholders

To get a title loan the lender will require a lien free title. There are a couple of exceptions like a title loan refinance. Regardless, once the title loan is made the lender will place their lien on the title.

This provides a security interest in the vehicle. If the vehicle is in an accident and is a total loss, then the insurance company will compensate the lender with the lien.

How to get a Title Loan without Insurance

To get a title loan without insurance the first step is to determine if insurance is a requirement in your state. If not, simply find a lender that offers the best title loans and apply for a loan. If they have a certain dollar cutoff for uninsured vehicles, then they will let you know when you apply.


Can you get a Title Loan without Insurance? Yes, if the lender and state do not require insurance. This is much more common for small title loans. Larger title loans will almost always require some form of insurance.