A car accident can result in many unexpected expenses, such as car repairs and medical treatment if you have injuries. Studies have shown that many traffic accident victims are unlikely to return to normal life. If you have been injured, the at-fault party should compensate you for your pain and suffering and all the expenses you incur because of the accident.
Unfortunately, the litigation process often takes a long time, and most of these expenses cannot wait until you receive a settlement. If you do not have the financial resources to cover your expenses, you could consider taking out a Rhode Island car accident loan. At High Rise Financial, we can offer you anywhere from $500 to $100,000 in legal funding within 24 hours.
What Is a Car Accident Loan?
A car accident loan is a cash advance given to the victim of a car accident against any potential settlement from their case. These loans are also referred to as pre-settlement loans. When you receive a car accident loan, you get money that you will not need to pay back unless you win your case and receive a settlement.
How a Car Accident Loan Works
If you have been in a car accident, there are only two things you can do to recover damages from the at-fault party: start settlement negotiations or file a lawsuit. Unless you are willing to accept a low settlement amount, it could take several years for you to receive compensation. However, you do not need to wait for the settlement to get the money you need; instead, you can apply for a car accident loan.
How Much Can You Receive?
Once you apply for a car accident loan, the lawsuit funding company investigates the facts of the case and consults your attorney to determine how much your settlement is likely to be. They do not base the decision on your credit history or score but on the strength of your case and its potential outcome and applying for a car accident loan will not affect your credit score. If the lawsuit loan company approves your loan and you accept their estimate, you sign a funding agreement, receive the money within a day or two, and use it to honor your financial obligations.
How Much a Car Accident Loan Costs
The lawsuit loan industry is unregulated, and the cost of car accident loans varies between lenders. Some companies charge significant interest rates that can end up costing almost the whole settlement amount while others charge modest rates. Therefore, it is important that you speak to your funding company about their interest rates before you receive your loan.
Car Accident Loan Risks
If you lose your case and receive no compensation, you are not obligated to pay back your car accident loan (this is called a non-recourse loan). Therefore, car accident loans are completely risk-free, as the lender takes on all the risk. If you win, you pay the lender back the amount they advanced you plus the interest at the rate you agreed with them in the funding agreement.
Requirements for Applying for a Car Accident Loan
Most car accident funding companies require you to have a lawyer who has already started the litigation process before they will agree to fund you. Some companies will also require you to involve the at-fault party’s insurance company.
A Car Accident Loan vs. a Traditional Loan
There are several important differences between a car accident loan and a traditional loan.
- Your eligibility for the loan does not depend on employment verification, your credit history, or your credit score.
- The collateral is the settlement amount and not property, such as land, a house, or a car.
- If you do not receive a settlement from your case, you do not have to pay the money back, so it is risk-free.
You can think of a car accident loan as an investment in the outcome of your car accident lawsuit rather than a loan.
How Car Accident Legal Funding Can Help You
While it is vital to contact your attorney immediately after you are involved in an accident so they can help you get compensation as soon as possible, this does not guarantee that you will receive your settlement quickly. The at-fault insurance company will try to prolong the lawsuit to force you into taking a low settlement amount because they know you have bills to pay. They have the time and money to wait and see how long it will take for you to accept their offer out of desperation.
Sometimes it can take years before you receive your compensation. During this time, a car accident loan can help to alleviate the financial pressures that could cause you to accept a low settlement amount. When these pressures are alleviated, your car accident attorney will have enough time to build a strong case and win a bigger settlement than the low settlement offer you initially received.
How Can You Use Car Accident Pre-Settlement Funding?
There are no restrictions or rules relating to how you can use your car accident loan. You can use the money to pay any expenses that arise during the lawsuit, not only expenses related to the car accident. Some of the common expenses you can use the loan to cover include:
- Medical bills
- Utility bills
- Wages lost due to missed work
- Car repair or replacement costs
- Rent and mortgage
How to Qualify for a Car Accident Loan
To qualify for a car accident loan, the following requirements must be met:
- You are at least 18 years old.
- The at-fault party is insured.
- You are ready to file a lawsuit or have a pending settlement.
- A contingency-based attorney is representing you.
Unlike other personal loans, car accident loans do not require credit checks or collateral. If you meet all the above requirements, it is very likely that you will qualify for the car accident loan.
Seek a Car Accident Loan in Rhode Island
If you have been in a car accident in Rhode Island, have immediate cash needs, and cannot wait for a settlement, High Rise Financial is a funding company with transparent contracts and pricing that can fund you. With an average turnaround time of less than an hour to approve an application, our approval process can give you funds in your account within a day or two.
Contact us today if you have any questions. Our passionate and dedicated staff will be happy to assist you in applying for a car accident loan.