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.
In This Article
- Compensation After a Car Accident in Rhode Island
- What to Expect from the Insurance Company
- Rhode Island Fault Laws
- Statute of Limitations for Rhode Island Civil Claims
- What Is a Car Accident Loan?
- How a Car Accident Loan Works
- How Much Can You Receive?
- How Much a Car Accident Loan Costs
- Car Accident Loan Risks
- Requirements for Applying for a Car Accident Loan
- Car Accident Loans vs. Traditional Loans
- How Car Accident Legal Funding Can Help You
- How Can You Use Car Accident Pre-Settlement Funding?
- How to Qualify for a Car Accident Loan
- Will You Have to Pay Taxes on Your Car Accident Lawsuit Loan?
- How to Apply for Rhode Island Car Accident Legal Funding
- Seek a Car Accident Loan in Rhode Island
Compensation After a Car Accident in Rhode Island
After you have been involved in a Rhode Island car accident, your entire life could be upheaved. Fortunately, when you file a claim with the insurance company or a civil lawsuit against the liable party, you may be able to recover total compensation for your damages.
Car accident losses are often separated into two categories known as economic damages and non-economic damages. Here is more:
Economic damages account for a car accident victim’s financial losses. You might assume this only includes your medical bills or property damages. However, this is not the case.
Any financial or monetary loss you experience as a result of your car accident should be taken into consideration accordingly. Economic damages can include a wide array of losses, such as:
- The increase in your insurance premiums
- The costs of hiring childcare
- Household maintenance expenses
- Rental car expenses
- Vehicle repair or replacement costs
- The money you lost while you were out of work
- Your inability to continue earning a living
Non-economic damages are much different from economic damages. They do not have a financial value, so if you are going to be compensated for them, your lawyer will need to quantify them accordingly. This means going over how your life has been affected by your injuries and assigning them a monetary value.
Some of the different types of non-economic damages that are frequently awarded in Rhode Island car accident claims include:
- The car accident victim’s reduced quality of life
- Mental anguish and distress resulting from the accident
- Loss of consortium, or an inability to maintain close personal relationships due to the accident or injuries
- Personal or professional reputational damages
- Injuries resulting in disfigurement
- Embarrassing skin scars
What About Punitive Damages?
It is common for car accident victims to wonder whether they could be awarded punitive damages in their case. Many people are aware that being awarded punitive damages could dramatically increase their compensation.
However, punitive damages are not a compensable loss. This means they are not something you have the right to recover in your case. In fact, the courts will only award punitive damages if they find the defendant’s conduct to be egregious, intolerable, or grossly negligent.
In this way, you should never expect to be awarded punitive damages, although they could increase your settlement exponentially.
What to Expect from the Insurance Company
Dealing with the insurance company is one of the most common ways to recover compensation following a car accident in Rhode Island. It is important to remember that insurance settlements do not typically cover a victim’s damages in full. In fact, the amount of compensation you can recover through an insurance settlement may be limited by the amount of coverage purchased by the policyholder.
For example, bodily injury liability coverage is supposed to protect the person responsible for causing the car accident. This bodily injury liability coverage will cover the injury victim’s medical expenses. Under Rhode Island law, motorists are required to carry a minimum of $25,000 in bodily injury liability coverage per person and $50,000 in bodily injury liability coverage per accident.
However, if the liable party only carried the minimum amount of bodily injury liability coverage, but your medical expenses exceeded $150,000, you could find yourself with $100,000 in excess medical costs that the insurance company is not required to cover.
Rhode Island Fault Laws
Rhode Island follows fault-based insurance and car accident laws. This means after you have been involved in an accident, you will file a claim with the liable party’s insurance provider.
You may be able to file a claim with your own auto insurer, but this is only a possibility if you purchased personal injury protection (PIP) coverage. Filing a claim with your own insurance company may be ill-advised, as it could have a negative impact on your total insurance premiums when it is time for your policy to renew.
Statute of Limitations for Rhode Island Civil Claims
Rhode Island personal injury laws allow for a maximum of three years to pass before the statute of limitations expires for car accident claims.
It is important to get your lawsuit filed before this critical deadline. Failure to do so will mean the court has no other recourse. They will be required to dismiss your case since the statute of limitations has run out.
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 the 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.
Car Accident Loans vs. Traditional Loans
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
The following requirements must be met to qualify for a car accident loan:
- 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.
Will You Have to Pay Taxes on Your Car Accident Lawsuit Loan?
One of the top questions car accident victims have when seeking legal funding is whether they will need to pay taxes on their pre-settlement funds. The answer varies depending on how you spend your legal funding.
If you are using your pre-settlement loan to cover your regular expenses, you will not need to pay taxes on them. However, if you use your legal funds to invest, you may be required to report additional earnings and returns as part of your income tax return.
How to Apply for Rhode Island Car Accident Legal Funding
If you are interested in applying for a car accident lawsuit loan in Rhode Island, you can do so by following these steps:
- Start off by filling out our application in detail. Do not forget to provide us with your attorney‘s contact information so we can reach out and learn more about how much you are expected to be awarded.
- After we talk to your attorney, we will review your application in detail to ensure you meet the eligibility requirements.
- Once your application has been processed, we can approve your claim and get you your car accident legal funds in as few as 24 hours.
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.