Seek alternative financing

• 1). Examine the collateral that is available to you. When you obtain a car loan you are simply asking a bank for money and collateralizing that loan with a vehicle. If you don't pay the loan, they take your car. Nearly every bank that issues car loans will require that you maintain comprehensive and collision insurance and list them on the policy as a loss payee. If you don't want to do this, you will need to obtain a loan using some other type of collateral. Make a list of everything that you own that has value. This could be your home, other vehicles, a life insurance policy, annuities or any financial asset.
  
  
• 2). Check the equity you have in the items above. You may own an expensive home but you must have equity in it (it must be worth more than you owe on it) if you want to use it as collateral. If you have life insurance, contact your agent or company to see if the policy has cash value that you can withdraw or take a loan against. If you own a valuable collection, land or other significant asset you may be able to find a lender that will accept these items as collateral.
  
  
• 3). Seek alternative financing. Once you have identified assets you can use for collateral, contact banks and other lending institutions to see if you are able to obtain a loan. The most common method used is a home equity line of credit. If you tap the equity in your home you can use the funds for any purpose and will not have to show proof of insurance on your vehicle. A life insurance loan will work the same way.