When should I consider getting a car accident settlement loan?

The National Highway Traffic Safety Administration (NHTSA) has compiled statistics on traffic accidents and they report that some 2 million people are injured in accidents involving motor vehicles every year. However, this number serves as no consolation when it is you that is part of these statistics. If you have been in a car accident and dealing with injuries, trying to see how to go back to work as soon as possible so as not to lose your income, or thinking of moving around without your car until it gets fixed, you may be living under a great deal of stress.

If you have filed a lawsuit against whoever caused your current distress, your lawyer has probably given you an approximate timeline as to what will happen. And even if the possibility that your claim will be successful is quite real, you might still need money while the case is resolved or gets settled. What can you do in the meantime? Is there any place where you can get your hands on some much-needed funds? The answer is a definitive yes. You may want to look into getting a car accident settlement loan.

How do you qualify for a car accident settlement loan?

In general terms, lawsuit lending companies will look at two factors when deciding how much you could qualify for. These are:

  • The potential value of your case as measured by the severity of your injuries
  • The probability that your case will be successful as measured by the likelihood that you will be able to prove liability

If these two elements are present in your personal injury claim, the probability that you would qualify for the loan increases. Also, in these cases, your personal credit score does not have any influence.

How is the application process for these car accident loans?

First of all, it is important for you to know that the application is free and there will be no credit or background check involved. In order to complete the application for this loan you would have to:

  • Submit your information either online or by phone. This will offer your lender a clear picture of your case and help them decide whether a car accident loan is appropriate at this time.
  • Give the lending company information about your personal injury lawyer. The lending company will ask your lawyer the pertinent details of your lawsuit, such as its potential outcome. This helps the lending company determine if there will be little risk to offer you a car accident loan.
  • Receive an approval. If the lending company determines that your case is a good fit, you would receive approval for the loan and the accompanying funds within 24 hours. The money would be delivered directly into your bank account.

What expenses might you cover with the funds from a car accident loan?

Once you receive the money, there will be no further need for you to continue feeling frustrated by the fact that your car accident loan is taking too long to settle. Which, under normal circumstances, can take the insurance company months or even years to pay out.

By receiving the car accident loan, you can start paying off your expenses right away. These might be:

  • The medical bills related to your injuries and rehabilitation
  • Your mortgage or rent payments
  • Your usual living expenses
  • Your legal fees

It is always recommended that you do not ask for more money in your loan than what you strictly need to cover your bills.

What is the major advantage of getting a car accident settlement loan?

Many times, the fact that the plaintiff is dealing with injuries, coupled with the mounting bills and lack of income, will make them desperate to settle for whatever the defendant is willing to offer. Even if it is a much lower number than what your attorney might have projected that your case is worth, you may be desperate to get your hands on any money at all. This will take you to make an unwise decision and say yes to the first amount offered, no matter how low.

The insurance companies have lived through plenty of situations similar to yours and can easily visualize your dire situation. They know that it is likely that you will accept a low offer because of the financial pressures of your life. They also know that the longer it takes for the case to be resolved, the higher your financial anxiety will be.

Getting a car accident settlement loan will give you not only that much-needed breathing room, but it will also put you in a position of strength when it comes to negotiating. These loans offer you a way to end up with a much higher settlement amount.

Do you have to repay the money?

This is a very important question because right now you don’t need to add any more worries to your growing list. That is why you can rest assured that should your car accident claim eventually be denied, you do not need to repay the loan.

This type of lending arrangement is known as a non-recourse loan, and what it means is that the car accident loan is secured solely by your future settlement, nothing else. If, for whatever unexpected reason you end up not winning your case, the lending company will have no other legal recourse available to recover the money from you. In short: you receive no settlement and you make no payment. That’s it.

Where can you look for the best car accident settlement loan?

To get started, you should look for a reliable firm. One that will provide you with a cost-effective, fair car accident loan. Among the points you should consider before getting the loan are:

  • If they guarantee that you will be getting the lowest rate
  • That the application process is fair and transparent
  • Whether the terms of the agreement are concise and clear
  • The time they say will take for your application to be processed
  • If they will offer you round-the-clock customer support services

Before getting the loan, ask all the questions you may have. After all, this can be an intimidating process. If needed, talk to your lawyer and ask for their opinion regarding the loan. It is important that you are able to find the loan that will best serve your particular situation.

Here are some additional questions you may have now. Don’t hesitate to ask them:

Is there a limit to the amount of money these companies can lend for a car accident?

There is no specific amount that everyone will get. It can range from as little as $500 to as much as $750,000 for pre-settlement loans.

How will I receive the funds?

The cash will generally be delivered within 24 hours of you being approved. It can be deposited into your bank account, you may prefer a paper check or the money can be wired through Western Union. You get to decide what works best for you.

When should I consider getting a car accident settlement loan?

You should get a pre-settlement loan when your injuries are so severe that they prevent you from going back to work. Or when the insurance company is pressuring you to accept a low offer. But mostly when you are looking for an option that allows you to get cash fast and with no risk to you. You only pay if you win your case.


About the Author Long Le

Leave a Comment: