Insurance Requirements For Auto Title Loans

Auto equity loans offer many advantages for borrowers. Since these loans are secured by your car’s value, they don’t rely on your credit and require minimal paperwork. However, because your vehicle serves as the loan’s collateral, both you and the lender must ensure its value is protected. This is typically done through proper insurance coverage.

Types of Auto Insurance

There are two main types of auto insurance that affect title loans: Personal Injury Protection (PIP) with Property Damage Liability (PDL) and Comprehensive and Collision Insurance.

Personal Injury Protection (PIP) and Property Damage Liability (PDL)

PIP and PDL insurance protect you and others in case of accidents.

• PIP Coverage: Covers medical expenses regardless of who caused the accident. It also applies to your child, household members, or certain passengers without their own PIP coverage.
• PDL Coverage: Pays for damages you or your family cause to another person’s property in an accident.

In Florida, the law requires a minimum of $10,000 in PIP and $10,000 in PDL coverage for all licensed vehicles. You cannot renew your license plate without proof of these policies.

At Embassy Loans, compliance with these requirements is mandatory when applying for a title loan.

Comprehensive and Collision Insurance

This insurance covers damage or loss of your vehicle caused by theft or collision.

While Florida does not require this coverage by law, lenders do. Embassy Loans requires comprehensive and collision insurance prepaid for the loan’s term.

This coverage protects both you and Embassy Loans if your vehicle is damaged or stolen—ensuring your loan is paid off in full.

Optional Coverage: Collision Waiver Debt Cancellation Addendum

If you don’t have comprehensive and collision insurance, Embassy Loans offers another option, a collision waiver debt cancellation addendum.

This is a voluntary add-on included in your monthly payment. While it’s not an insurance product and doesn’t indemnify you, it cancels your remaining loan balance if your car is destroyed in an accident.

It’s another way Embassy Loans helps you protect your finances and maintain flexibility in your loan terms.

Get Started with Embassy Loans

At Embassy Loans, we aim to make auto title loans safe, simple, and stress-free. Our team is ready to guide you through the process and ensure your loan is fully protected.

Apply online today or contact us at (833)839-2274 to learn more about your options. Let Embassy Loans help you get the funds you need—fast and securely.