Can I Get a Car Accident Loan While Waiting For A Settlement?
Someone who has been in a car accident and experienced serious injuries may not be able to work. As a result, they could easily be unable to earn a living and take care of their daily needs for weeks, months, or even years.
What should they do if they need money while waiting for a settlement? Continue reading to find out how a car accident loan can get you the money you need during your recovery.
Car Accident Loan Overview
A car accident loan provides money in advance of your settlement to pay for your mortgage, car payment, food, rent, and medical expenses while you wait for the case to settle. You also can use the pre-settlement funds for other expenses.
This is referred to as a loan, but the reality is a bit different. If your car accident attorney doesn’t get you a settlement or favorable verdict, you don’t need to pay back the cash advance. The lender bases its lending decision on the likelihood your case will result in compensation. So, you can get a car accident loan while waiting for a settlement – if the lender thinks it’s worth the risk.
It all boils down to the strength of your car accident case.
What Car Accident Loans Can Do For You
Imagine you’re hit from behind, and you have a fractured vertebrae, slipped disc, and mild concussion. After spending a week in the hospital, you’re unable to work for two months. Now you have thousands of dollars in medical bills, lost income, and paying bills is a nightmare.
Fortunately, a car accident loan can help you make ends meet while healing from your injuries. But unfortunately, it can take months or possibly years for car accident negotiations to settle. So, applying for a pre-settlement loan can reduce stress and keep a roof over your head.
Keeping up with bills after a car accident can be challenging. The CDC reports that 2.5 million ER visits for car crash injuries in 2012 netted $18 billion in long-term medical costs for victims. About 90% of medical bills from car crashes come through in the year and a half following the accident.
In this situation, you could need to pay for all of your living expenses, plus attorney costs and medical bills. Unfortunately, few of us can handle such a daunting financial burden.
3 Factors That Affect Getting A Car Accident Loan
Curious if you qualify for funding after a car accident? Of course, every loan company is different, but these are some critical factors involved:
- Who caused the car accident? Obviously, if you caused the car accident, you will unlikely win a settlement. So instead, the loan company will review the case details, including the police accident report and insurance reports, to determine who is liable.
- Do you have damages? If you aren’t injured and have no property damage, you can’t get a settlement. Instead, you and your attorney will provide evidence of your injuries, such as medical bills, lost earnings statements, and medical opinions about your pain and suffering.
- How much insurance is there? The common way car accidents settle is with insurance funds. If there isn’t a lot of insurance available, the settlement could be limited. Some personal injury lawyers say the average compensation for these cases is $20,000.
The bottom line on getting approved for funding is if the other driver was clearly at fault and it’s in the police report, you will probably get approved quickly. It also helps if you have a skilled car accident attorney who knows how to get you as much money as possible. It also helps you to get money faster if your medical treatments are clearly explained by the doctor and are easy to verify.
How Do You Get Cash?
You can get your money in several ways. Most companies can give you the cash advance through electronic transfer, check, or even in-person. This gets you the necessary money right away, if necessary.
Don’t Need To Pay Anything Back If You Don’t Win
When the case settles, the lender is paid back from the settlement amount, plus interest and fees. These costs should be clearly explained in the loan paperwork. Run in the other direction if they aren’t!
While the interest rate you pay will be higher than a traditional bank loan, there’s no need to worry if your case doesn’t settle. You don’t have to pay anything back if you don’t get compensation in your case.
Beware of Illegimate Lenders
Unfortunately, there are many scammers working in the pre-settlement funding space because injured parties are often desperate for money. Some of the signs that the lender could be a scammer are:
- Guarantee extremely low interest rates. Remember that the lender is taking a substantial risk if the case doesn’t result in settlement. So, expect to pay a higher interest rate on the money.
- Don’t tell you the truth about the lending and funding process
- Don’t make it clear in the loan paperwork how much money you get and the interest rate
You probably cannot trust a loan company that exhibits any of these signs.
Be Clear About Your Car Accident Case
If you want to get funding as soon as possible, give the loan company all the information they request. Don’t hide anything about the case or it could prevent loan approval.
For example, say you may have been partially at fault for the car accident. This fact could affect how much money you qualify for. But the lender will find out one way or another that there are questions about liability. One of the first things the lender will do is check with your attorney about the case and who was liable. Even if you are partially responsible, you still may qualify for funding.
Ready to apply for a car accident loan? Apply now for a car accident loan with Capital Now Funding to learn if you’re eligible for compensation.