But does it make sense to borrow money from your next paycheck to cover an insurance premium? The fact of the matter is that a payday loan can be used for anything – the idea is you need to manage your household finances. Borrowing from yourself, your next payday check, is a simple way to do it.

Consider these reasons why using a payday cash advance loan to pay for car insurance – or car repairs, or even a down payment on a car – can make a lot of good sense:

• Insurance is required almost everywhere – Without a doubt, insurance against vehicle damage, damage to other people’s vehicles and liability for catastrophic (i.e., expensive) injuries is an essentially important and good thing. But in most states, it is also required by law. You do not have a choice if you want to have a vehicle on the road, so a payday loan can keep your life functional. If you drive to work, you need a car.


• Finding a new insurer may cost more money – If you allow a policy to lapse, your insurer may drop your coverage altogether. With one fewer company to choose from, you may end up paying more to be insured than with your current company.


• Imagine the cost of not being insured – Perhaps you live where you are not required by law to have insurance. A catastrophic accident could cost you your home and future earnings. Or if you do drive without a policy where one is required, be very worried about being stopped for a traffic violation. The penalties can run into several hundreds of dollars.