Can you junk a car with a title loan?

Is there any way I can junk a car that I used to get a title loan? I hit it with my tractor the other day, and it just fell apart. It was already pretty old, and I'd like to scrap it if I can.

Unfortunately, you can’t junk a car with a title loan until you’ve paid it off in full. This is because the lender has a lien on the car, so it must be available for collateral if you can’t make your payments.
Since you can’t throw it out, check your insurance policy to see if you’re covered for damages. Coverage like collision or even comprehensive may keep you covered for tractor-related damages. Hopefully, you can find an affordable way to get your car fixed up—at least until you can pay off your loan!
To make sure you make your monthly payments, try saving on car insurance with the Jerry app. A licensed broker, Jerry can help you find and compare quotes from over 50 top providers for free. Users save an average of nearly $900 a year on car insurance with the Jerry app, and it only takes a minute to sign up!
Liz Jenson
Answered on Nov 08, 2021

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
Find insurance savings — it's 100% free