The Benefits of Car Accident Loans for Injured Victims
Car accidents are expensive, and victims often have medical expenses they must pay now. They also face bills for their cars, daily expenses, and more.
A pre-settlement loan (sometimes called a car accident cash advance) provides quick financial assistance for these bills, rent or mortgage payments, and more. These loans don’t require credit checks or income verification and are based on your likely settlement.
They Help You Pay Your Medical Bills
Many car accident victims cannot work due to their injuries, making it difficult to pay for day-to-day expenses and bills while waiting on their settlement. Car accident loans, also known as pre-settlement funding, can help you get an advance on your future settlement so that you have money to pay off medical expenses, replace lost wages, and cover other living costs.
Unlike a traditional loan, no monthly payments are required with a car accident lawsuit settlement loan. Additionally, you only owe the money back if and when your case settles, or your award is received through the court system.
With the right legal funding company, you can get your money quickly to take care of immediate bills and expenses while focusing on your recovery. Because the money is not considered a loan in the strict sense of the word, it does not require credit checks or regular repayments. Moreover, it does not appear on your credit report, so it won’t affect your ability to obtain future home loans or other credit products.
While liability insurance will ultimately cover your medical expenses, receiving this payment can take weeks, months, or even years. This delay can leave you struggling to make ends meet and may lead you to accept a low settlement offer from the insurance company. Car accident settlement loans can provide the financial relief you need to fight for your full compensation.
They Give You Peace of Mind
Car accident injuries can be costly, and many victims are financially distressed. Injured victims miss work, and bills don’t stop coming in while you wait for your case to settle. Insurance companies are known to drag their feet on settling claims, hoping injured victims will be forced to accept low settlement offers out of desperation. However, pre-settlement funding levels the playing field by giving you the financial backing you need to fight for a fair settlement.
A car accident lawsuit loan allows you to take care of your responsibilities while the legal process plays out. The cash advance is based on the strength of your lawsuit, not your credit score or employment status, so it is less risky than a traditional loan from a bank. It also does not report to the credit bureaus, so it will not impact your ability to apply for mortgages, car loans, and other credit in the future.
To qualify for a lawsuit loan, you must have a pending legal claim against the negligent party in the car crash and be represented by an attorney. The funding company will liaise with your attorney to assess the merits of your case and determine the loan amount you are eligible for. The funding company will deposit the cash advance into your account upon approval. The loan is then paid back once your case has been settled or won.
They Help You Make Ends Meet
Car accident loans help bridge the gap between your pending settlement and your eventual restitution. They can help you pay for your medical bills, car repairs, insurance payments, and other expenses. At the same time, you wait to be awarded compensation from the negligent party responsible for your car accident.
Unfortunately, even the most clear-cut car accidents can take months or years to settle. During that time, bills and other financial obligations continue to pile up while you struggle to keep a roof over your head and afford food and essential supplies for yourself and your family.
The fact is that many insurance adjusters use the ancient legal doctrine iniquum commodum or “take unfair advantage” of plaintiffs who are already struggling to make ends meet. They know you may be tempted to accept a low-ball settlement offer to avoid bankruptcy and other financial hardships. With pre-settlement funding, however, you have the power to turn the tables and get the full amount you deserve.
Often, you can qualify for this type of financial assistance without the need to provide any collateral. A consumer legal funding company will evaluate your case and determine the likelihood that it will result in compensation. This will determine how much of an advance you are approved for and will not impact your credit score.
They Give You a Head Start
Car accident settlement loans can help level the playing field between injured plaintiffs and financially stronger insurance companies. Rather than trying to make ends meet by accepting low-ball settlement offers, you can fight for the full amount that you deserve, giving your attorney time to negotiate and potentially take the case to trial if necessary.
Car accidents can result in serious injuries that require extensive medical treatment and long-term care. Depending on the severity of your injuries, it could be months or years before you receive your settlement. In the meantime, bills can start to pile up. Many injured victims struggle to pay essential expenses like rent, mortgage payments, bills, and tuition.
When you apply for a car accident loan, the company that provides it will review your case and your attorney’s representation to determine if you qualify for an advance. If you do, they will buy a portion of your expected settlement in exchange for an upfront payment. If you do not settle with the insurance company or win a court award, you will owe the funding company a predetermined percentage of the settlement/court award.
Legal funding differs from traditional loans since you cannot provide a credit check or monthly payments. Also, the cash advance is not reported to credit bureaus and won’t impact your future ability to secure a home or auto loan.