Legal funding and car accident loans are in high demand among people waiting for settlements, and it’s easy to see why. Every year in the US, car accidents cause roughly 35,000 fatalities, according to the Insurance Information Institute (III). Despite decades of safety reforms, auto collisions remain a leading cause of death and injury in the United States.
If you’ve suffered from a car accident, it can take months or years to obtain your settlement. Few people can wait that long for their award, and the financial pressures you’ll face can impact your ability to get compensation from the at-fault party. We can help you get the legal funding and car accident loan you need fast to fight for the full value of your settlement.
What Is a Car Accident Loan?
A car accident loan is a type of legal funding available to those who have been in an auto collision. The name is somewhat misleading, as a car accident loan isn’t actually a loan. Instead, it’s a payout you can receive now based on the potential value of your settlement.
Vehicle collisions are expensive and leave victims with bills they need to pay off now. The settlement is supposed to provide this money, but it can take weeks, months, or even years for victims to receive this money, during which time they could be pressured to accept a lower payout.
A car accident loan gets you money now to cover some of those expenses, giving you the ability to fight for your full settlement.
How Does Legal Funding for a Car Accident Work?
After an accident, you’ll need cash to pay for expenses related to the crash and to potentially cover a gap in lost income. Your settlement will cover these expenses, but it could take months or years for you to get that money. Instead of waiting, you could accept legal funding now and avoid the stress of waiting for a payout.
Unlike a traditional bank loan, legal funding for car accidents include a flat fee with no interest and a fast, simple approval process. Even better, if you lose your lawsuit and don’t win compensation, you don’t have to pay back any of the money you received.
That’s because the IRS classifies legal funding as a form of nonrecourse debt. Your settlement, not your personal assets, serves as collateral for the funding. Instead of being treated like a loan, the IRS sees legal funding as an investment, where the company making the funding offer assumes all risk.
How Can I Use Legal Funding?
You can use the cash you get from legal funding in any way you wish. We do not have any restrictions on how you choose to use your money. Typically, car accident victims use their legal funding to pay off the following critical expenses:
The Association for Safe International Road Travel (ASIRT) states that roughly 4.4 million car accident victims in the U.S. suffer injuries severe enough to require medical treatment. You can spend upwards of several thousand dollars to reset a broken bone or have minor surgery. Few people have this kind of money available after an accident.
Waiting for your settlement can cause your medical debts to continue piling up. To avoid any financial problems with your doctor or hospital, you can manage those debts early with legal funding. You don’t have to make a hard choice between paying bills or getting proper medical treatment with the cash you receive.
Vehicle Repair or Replacement
Car accidents will almost always cause significant damages to your vehicle, requiring a repair or replacement. Waiting for months, or possibly even years, for a settlement to repair your car can severely impact your quality of life.
With legal funding and a car accident loan, you don’t have to wait to get a replacement car or make the repairs you need. Instead, you can get them instantly and easily pay off the mechanic or dealership.
Paying for Rent, Mortgage, Utilities, and More
Critical financial obligations, such as your rent or mortgage payments, utility payments, and groceries can’t be put off. A car accident may leave you with serious injuries and a lengthy recovery period, during which you are unable to work and earn money.
Your settlement will be critical to rebuilding your life after an accident, but you have to win it first – and that isn’t cheap. Pre-settlement legal funding affords you comfort and financial security while you await your settlement.
What Are the Advantages of Car Accident Loans?
Car accident loans carry several advantages over traditional loans for those who need money after an accident. With pre-settlement legal funding, you can take advantage of the following:
- No credit or income check
- Easy approval for higher amounts of money
- Access to your money in 24 hours or less
- Low interest rates
- A simple application process
Who Is Eligible for a Car Accident Loan?
While it’s much easier to get a car accident loan than a traditional loan, not everyone will qualify for one. You must have an active lawsuit and your lawyer must approve of outside legal funding in order for you to qualify. If they don’t approve of third-party funding for your settlement, we won’t be able to help you.
As the legal funding company will be assuming all the risk of your case, they’ll want to know if the defendant is at-fault and insured. Depending on which state you live in, a legal funding company may still work with you if they believe you are partially at-fault. However, if the defendant is uninsured, you won’t be eligible for legal funding, as the likelihood of repayment is low.
Applying for Legal Funding
Traditional loans require a lengthy application process, but that’s not the case with legal funding. Since all that matters for your legal funding application is the potential value of your settlement, you can be approved much faster than you would be for a typical loan. You also won’t have to worry about your credit history or any other factors that can impact your eligibility for a loan.
You can apply for legal funding through a simple online application form on our website. All you need to do is provide us with the information we need, and we will get back to you within 24 hours. If approved, you can receive the funding you need shortly afterward.
Our financial team works quickly to ensure that you get a response fast. We won’t waste any of your time, and we always strive to notify you of approval by the next business day. Financial matters are always time-sensitive, so we work hard to get our clients cash as fast as we can.
Apply for Free With Us Today
Even though you are legally entitled to file a claim for a settlement, there’s no guarantee under the law how fast you can receive compensation. Some car accident lawsuits can take several months, if not years, to finally settle.
The financial experts at High Rise Financial are here to help. We won’t let the insurance companies exploit you after your car accident. Instead of getting costly loans, consider getting in touch with us today to learn more about all of the financing options available for you.