Car accidents often bring many difficulties—financially, physically, and emotionally. Fortunately, you can receive financial assistance with the help of a car accident loan.
The team at Injury Wallet can help you find a legal lender that offers the best pre-settlement auto accident loan.
Apply now to see if your case is eligible for a cash advance.
What is a Car Accident Loan?
Auto accident settlement loans are not what you may think.
“Loan” implies you must repay the money lent to you at some point. Car accident loans are different. Accident loans give you the money you need while your lawsuit gets resolved.
If you lose your case, you don’t owe your lender any money.
Are Car Accident Loans and Cash Advances the Same Thing?
You may hear ‘car accident loan’ and ‘car accident cash advance’ used interchangeably.
Essentially, the two are the same thing. You apply for a car accident loan and get your cash advance for your pending lawsuit.
If you win your case and receive a settlement, you pay back the loan with a portion of your settlement. If you lose your case, you do not owe any money back.
Why Should You Consider a Car Accident Settlement Loan?
There are many reasons to consider applying for a car accident loan.
Some of the most common reasons include:
- You’re unable to work;
- You need help paying bills; and
- Your lawsuit will take some time to resolve.
A car accident loan can also hold you over financially, giving your attorney the time they need to fight for fair compensation.
A cash advance for an auto accident can solve many of the issues you may face after an accident.
How Do I Qualify for an Auto Accident Loan?
Qualifying for a car accident lawsuit loan varies from other types of loans.
While every lending company has different standards, your qualification will depend on:
- The severity of your injuries;
- The likelihood of proving liability; and
- Whether you’ve hired an attorney.
Qualifying for a loan after a car accident won’t depend on your credit score; it will depend on your personal injury case.
How Much Cash Will I Get From My Loan?
How much money you’ll get from accident settlement loans can vary by lender, but typical loans range from $500 to $250,000.
Generally, the amount of money that one can borrow for accident funding varies from case to case.
It all depends on the individual circumstances surrounding the claim and the lender’s internal policies.
As such, the amount of money you can borrow with your car accident cash advance is not a preset quantity.
How Do Lenders Determine the Size of Car Accident Loans?
As noted, the size of your potential car accident loan depends largely on the circumstances surrounding your case.
Generally, the more severe the injuries you suffered, the more valuable your claim is.
The total value of your claim is, effectively, the absolute ceiling to the amount of money you can borrow with your accident loan. Most lenders won’t go near the total value.
Instead, you will likely encounter a limit of roughly 10-15% of your total damages. This isn’t the only important factor, however.
The Big Three Factors of Car Accident Settlement Loans
Many of our lending partners look at three main factors to determine the limits of car accident settlement loans. Damages alone are not the determining factor—but they are the first of the three.
The other two relevant factors are liability and insurance coverage. As far as liability is concerned, you can only get an accident loan if the other driver is, in fact, liable for the damages.
Most lenders will only let you borrow money beyond the liable driver’s insurance limits. If your damages are well within the liable party’s insurance limits, lenders will most likely deny your application.
Aside from the factors we already noted, many lenders look at your claim’s chance of success.
This is a big component of what lawsuit lenders discuss with your attorney when they seek more information on your claim.
Your claim’s chances of success can make or break your application. If your claim is unlikely to succeed, the lender may deny your application outright.
Other times, they may only let you borrow a small amount. It all depends on the lender’s specific internal policies.
How Fast Can I Get a Loan?
How quickly you get your auto accident settlement advance depends on the lender, as some lenders will need to review your case and talk to your attorney.
However, once you are approved, many companies provide funding within 24 hours. If you’re looking to get a car accident settlement loan, don’t delay and apply today.
Will Getting a Pre-settlement Auto Accident Loan Result in a Larger Settlement?
Getting a pre-settlement cash advance can result in a larger settlement for you.
Auto accident lawsuits take time, as your attorney needs to gather evidence and build your case.
In many cases, people want to rush the process, often settling for a low or unfair settlement to get their money more quickly.
Automobile accident loans can help keep you financially stable while you allow your attorney to work diligently on your case, many times resulting in a higher settlement.
What Can I Use My Loan Money For?
There are no rules for how you use your accident loan.
You can use the money you get from car accident settlement loans for whatever you want or need.
Typically, loans for car accidents are used to pay for extra expenses that arise from the accident.
They can cause serious financial and emotional hardship if not dealt with.
We typically see four distinct areas of extra expenses that our clients use their auto accident loans for:
- Medical expenses,
- Living expenses,
- Various bills, and
- Legal fees.
Before moving on, let’s talk about each of these four expense areas.
If you had to seek any sort of medical care after your injuries, you face some extra medical expenses. Even with health insurance, medical care is expensive in our country.
In fact, medical bills are one of the most common reasons that individuals file bankruptcies in the US today.
Many of our clients use a significant portion of their auto accident pre-settlement loans to make initial payments on their medical expenses and avoid high-interest rates and late fees.
On top of the extra expenses associated with your accident, you still have to live, and living costs money. Putting food on the table, clothes on your children, and gas in your car adds up quickly.
This is true even for individuals and families with full-time jobs. Car accident injuries can leave you unable to work for a period of time.
If you don’t have sick leave or PTO, you still need to make up the difference. A lawsuit loan will help you do just that as you wait for your case to settle.
Aside from living expenses and medical expenses, you always have your normal bills: car insurance, medical insurance, phone bill, and mortgage payments.
These bills don’t just magically stop coming when you get into a car accident. Pre-settlement loans for car accidents help our clients avoid the pitfalls of letting these bills pile up. They can help you too.
Finally, you will have extra expenses in the form of legal fees. If you take out a lawsuit loan, you can take care of some of those legal fees upfront.
Otherwise, you can save money from the loan in your bank account. That way, when your lawyer receives your settlement check and takes their fee out of it, you still have that extra money stashed away.
At the end of the day, it is entirely up to you to decide how to use your car accident lawsuit funding.
What Factors Affect Interest Rates?
Interest rates often depend on the specifics of your case. An automobile accident loan is not affected by your credit history or credit score.
Many lenders will base their interest rates on the value of your case and the chances of winning a settlement.
Are Car Accident Settlement Loans Risky?
There is minimal risk associated with auto accident loans.
There is no risk of damage to your credit score, and you do not need to repay your loan if you don’t win your case. Pre-settlement cash advances offer more reward than risk.
Is an Accident Loan Right for Me?
Pre-settlement loans for an auto accident lawsuit may be right for many people, including those that:
- Are severely injured;
- Are unable to work and make an income;
- Have many expenses and bills to pay; or
- Simply need more time for a better settlement.
If you find yourself in any of the above situations, a car accident loan may be right for you.
Nobody else can tell you whether or not you should take out a lawsuit loan. To determine if an auto accident loan is a right thing for you, you need to ask yourself some questions.
Write these questions down, and answer them as honestly as you can:
- How much money do I have in liquid assets?
- What is the total value of all the extra expenses arising out of the accident?
- What is the total value of my monthly bills and living expenses?
- What is my monthly income?
- Have I missed work, or will I miss a significant amount of work due to the accident?
- How much do I expect from my settlement?
Now, group the numbers together. Add your monthly income (if you are working) to your total liquid assets to see how much financial “stress” your pocketbook can take at the moment.
Make sure to deduct any money that you will not earn due to your accident or injuries. Then, add up your monthly expenses and extra expenses.
If your total expenses exceed your income and assets, an auto accident loan is probably a good option.
It is less risky than a traditional loan and less expensive than credit card interest and fees you can incur by not paying those bills.
Remember, it is up to you to decide.
Why You Should Work With Injury Wallet
At Injury Wallet, we understand the difficulties that come after a car accident, and we’re here to help alleviate some stresses and burdens.
Our team connects you with lenders who can offer you the lowest rate on a car accident loan.
We want to give you the best chance at getting auto accident pre-settlement funding, giving your attorney the time they need to work on your case.
A car accident loan can result in a better settlement, and we want to see you get the compensation you deserve.
Ready to Get Started? Apply Today
After a car accident, don’t hesitate to get a car accident cash advance. You don’t have to struggle now while you wait for a settlement later. But don’t just take out any loan; find the best one for your needs.
Better yet, don’t struggle alone to find yourself the best possible lawsuit loan. Instead of filling out countless applications and parsing through complex loan agreements, let Injury Wallet do the shopping for you.
So let us help you get the most out of your settlement. Get started today!