Here’s How to Get Car Accident Settlement Loans

Source: Freepik

A car accident settlement loan, also known as pre-settlement funding or a lawsuit loan, is a cash advance against the anticipated compensation from a personal injury case, particularly in the event of a car accident. If you’ve been injured in a car accident due to someone else’s negligence, and are waiting for your case to be resolved, you can apply for a car accident settlement loan. It can help you pay medical bills and cover other expenses. 

Applying for a car accident settlement loan is not as straightforward as it sounds. Here are four steps you need to follow for a successful loan acquisition:

See If You’re Qualified

The first step is to determine if you qualify for a car accident settlement loan. In most cases, you’re eligible if:

• You were involved in a car accident. 
• You filed a personal injury lawsuit. 
• You suffered significant medical injuries in the car accident. 
• Your lawsuit has robust merits against the at-fault party. 

Consult with a Lawyer

Next, consult with a personal injury lawyer. Given their extensive experience and knowledge, they will review the strengths and weaknesses of your case and determine whether you’re eligible for pre-settlement funding. 

Working with a competent personal injury lawyer who specializes in car accident loan payments can increase your chances of acquiring a loan. 

Find a Reputable Funding Company

Research and find a reliable legal funding company that specializes in car accident settlement loans, such as US Claims. Thoroughly analyze their fees, interest rates, and other potential charges. 

Most legal funding companies offer upfront cash, often within 24 hours. You will receive a lump sum, typically 10% of the expected settlement amount. 

Remember that the loan will incur interest until your case is resolved. So, review their interest policies beforehand to avoid any financial surprises later on. 

Apply for Funding

Once you’ve consulted with your personal injury lawyer and found a legal funding company, it is time to get into the administrative side of things. 

Most companies have an online application process, which is quite simple. You need to provide information about your accident, medical condition, and expenses. Your lawyer can assist you in gathering relevant information and documents. 

Wait for Your Case to be Evaluated

Once your application is submitted, the funding company will assess your case based on various factors. This includes:

• Evidence – police reports, witness statements
• Liability – who is at fault for the accident, and the degree of their responsibility
• Economic damages – medical bills, lost wages, and property damages
• Emotional pain and suffering

Funding companies spend considerable effort on risk assessment. They are essentially taking a risk based on the potential for a successful outcome. 

If your loan is approved, you will sign a funding agreement and receive the cash. Most car accident settlement loans are non-recourse, which means you don’t have to repay them if you lose the case. 

Being involved in a car accident is financially stressful. A car accident settlement loan can help you cover any accident-related expenses and help you get back to life activities as you wait for personal injury compensation.