After an auto collision, a car accident loan can help you pay for immediate medical expenses and get back on your feet. Pre-settlement legal funding is a type of financing that carries no risk to the borrower. It can get you early access to your settlement money and ultimately help you fight for its full value.
With legal funding, you can avoid many of the financial pressures that could force you to accept a lower settlement. A car accident loan is easy to obtain, especially if you’re already involved in a lawsuit. Find out if this is the right option for you to get the money you deserve from your accident.
What Is a Car Accident Loan?
One of the most common forms of personal injury lawsuits is a car accident claim. While most settle long before seeing the inside of a courtroom, that doesn’t mean the case resolves quickly. You might end up waiting months or even years before you receive the money you are owed from the driver, government entity, trucking company, or other at-fault party from your accident.
A car accident loan is a way to dip into your future compensation package to pay for your present expenses. A legal funding company can take a look at the facts of your case and estimate the size of your settlement. They can then lend you a portion of this amount, to be repaid later, but only if you win your case.
Is a Car Accident Loan Actually a Loan?
A car accident loan is a type of personal injury loan, but it’s a different kind than what you’re probably used to. This money is available to you at no risk to your own finances since it’s considered a non-recourse loan. This means that with your car accident loan, you technically have no obligation to repay it with your own money.
A car accident loan is essentially a cash advance on your settlement. A legal funding company, your “lender” in this case, will be able to come up with a reasonable estimate of the size of your potential award. From this, they’ll determine how much legal funding they’re willing to offer for your case.
Your settlement is used as collateral for your car accident loan, which means if you lose your case, you repay nothing. This means you can safely take out legal funding for your expected settlement at no risk to your own finances. In the case of recourse debt, you would still owe whatever you charged on your credit card or took out from a recourse personal loan if you lost.
Lawsuit Funding Can Help You Win a Larger Settlement
Money in your bank account from a car accident loan can help you win a larger settlement by relieving financial pressure. Many at-fault drivers, insurance companies, and opposing lawyers will try to stall proceedings as long as possible. They know that you likely have bills to pay and hope that the financial pressure will be enough to make you accept a lower settlement.
With legal funding, you won’t have to worry about taking a lower settlement now just to pay your bills. You’ll also buy your lawyer more time to build a stronger case that can help you win a much larger settlement. Even rock-solid lawsuits take time to litigate, and your lawyer will have plenty with your lawsuit funding.
What Expenses Can Car Accident Legal Funding Help You Pay?
Legal funding can be used to cover any expense you might face during your lawsuit. There are no restrictions on how you can spend the money from a settlement loan. You don’t even have to spend the money on expenses related to the damages you suffered from the accident. Some of the common expenses that plaintiffs cover with lawsuit loans include the following:
- Medical costs
- Repairs or replacement for your damaged vehicle and property
- Wages lost due to missed work
- Rent and mortgage payments
- Utility bills
- Other daily expenses, like food or gas
A car accident loan can lessen some of the financial burden of your damages, which the defense is counting on to force you into an early settlement. Getting pre-settlement funding for a car accident means that you can outlast these pressure tactics that can force you to settle for less than you deserve.
How to Qualify for a Car Accident Loan
It’s easier to qualify for a car accident loan than you might think. There are just a few conditions you need to meet to obtain legal funding for your case:
- You must be at least 18 years old
- You must have a pending settlement or be ready to file a lawsuit
- You must be represented by a contingency-based lawyer
- The defending party must be insured
Once you fulfill the above criteria, it’s likely that you qualify for legal funding. There’s no credit check required to receive a pre-settlement car accident loan since your credit and personal finances won’t be used to repay the loan. All that matters when it comes to getting funding is the quality of your case.
What Determines the Amount of Money You Qualify for With a Car Accident Loan?
Car accidents can cause immense financial damage to victims and lifelong injuries. You could face immediate and ongoing expenses related to the loss of your vehicle, other property, or income. This can entitle you to a large award and a substantial car accident lawsuit loan. The amount of legal funding you can qualify for after an accident is determined by several factors:
- The severity of your injuries
- Your medical bills and the cost of ongoing treatment
- Any lost income (current or future)
- Any property damage you sustained
- Any pain and suffering you may have suffered
Depending on the size of your potential settlement or award, we can offer you anywhere from $500 to $1 million in legal funding. With a large potential settlement, we’ll be able to offer you a larger car crash loan. However, we cover many smaller cases and can offer you a car wreck loan regardless of the size of your case.
How Much Do Car Accident Loans Cost?
Every car accident case is different and imposes its own set of costs on plaintiffs. As a result, we’re unable to provide a specific estimate as to how much your car accident loan will cost. However, there are a few rules of thumb that reputable legal funding companies tend to follow when offering car accident loans.
For one, there shouldn’t be any added fees associated with your auto accident loan. Any and all costs of your lawsuit loan should be disclosed to you upfront. These will be in your contract that you sign once you take on the loan. Your contract should also be easy to understand and written so you know exactly what you are agreeing to.
Additionally, car accident loans should come with a low, simple interest rate. High, compounding interest rates can quickly add up over the course of a lengthy lawsuit, even if they don’t seem much more expensive right now. As many claims can take a year or more to settle, a low interest rate is critical to protecting as much of your settlement as possible.
How to Apply for Car Accident Loans
If you are in the middle of a car accident lawsuit, you likely qualify for a cash advance from Tribeca Lawsuit Loans. Here’s how the process works:
- You apply: Head over to our Apply Now page and provide us information about your case, including the expected compensation you’ll receive, the expected duration of your lawsuit, and contact information for your attorney or law firm.
- We evaluate: Our team will go over this data and evaluate how much we can provide for your situation. We’ve helped clients by loaning out anywhere from $500 to $1,000,000 in the past.
- You get your money: The funds will be given to you as quickly as possible after you are approved and all paperwork is signed. In some cases, you can have the money in as little as a single day!
We know how important it is for you to get your car accident loan fast, especially if you have bills that need to be paid right now. We’ve streamlined our application process so that you can get your money as soon as possible and with as little work on your part as necessary.
How Risky Are Car Accident Loans?
Since lawsuit loans are non-recourse, you are never held personally liable for the debt. Your personal assets are never at risk and the only potential source of repayment for the car crash loan will be your settlement. If you lose your case, you don’t repay your car accident loans. You also won’t ever have to pay more back than the amount of accident loans that you borrowed.
This also means that applying even for multiple car accident loans won’t impact your credit score. In fact, your credit score and employment history aren’t even taken into consideration in your application. The only factors that can impact your ability to obtain a lawsuit loan is your case itself and how likely it seems you are to win it.
How Do You Know if a Car Accident Loan Is Right for You?
While car accident loans offer numerous benefits and carry no risks for borrowers, they’re not for everyone. Here are some signs that indicate legal funding could be the right financing option for you:
- You have immediate expenses
- You’ve suffered serious injuries from your accident
- You’re unable to work or suffered a major loss of current or future income
- Insurance companies are offering a lower settlement than you think you deserve
Car accident loans aren’t free, and you will walk away with less money from your settlement if you take one (or several) out. Even with a low interest rate, an auto accident loan can become expensive with a long case. If you can already afford your living expenses and aren’t facing any major bills that are coming due, you could be better off without a car accident loan.
Additionally, if you’ve received a fair offer for your damages from your settlement, further negotiations could be counterproductive to your interests. If you haven’t suffered from a loss of income, a lawsuit loan might not be desirable, either.
Do I Need My Lawyer’s Approval to Get a Car Accident Loan?
We will need your lawyer’s approval in order to offer you a car accident loan. Most lawyers who work on a contingency basis, which are the types of lawyers we can work with, are open to accepting legal funding. However, some don’t want to involve a third part in the payment process for a number of reasons, which is where we would interact with them.
If your lawyer doesn’t want to accept legal funding, we won’t be able to work with you. However, we may still be able to offer you lawsuit funding if you decide to work with another lawyer who is open to accepting legal funding. If you’re unable to find a new attorney, you may need to turn to other forms of funding, such as recourse debt, to pay for your expenses.
Don’t Wait – Reach Out to Tribeca Lawsuit Loans Today!
At Tribeca Lawsuit Loans, we can offer you up to $1 million in legal funding that you can receive in your bank account within 24 hours of your approval. Our application takes just minutes to complete and doesn’t require a credit check or any evaluation of your personal assets. We’ve disbursed over $45 million to our clients and have the financial resources to assist you.
For any questions or concerns regarding car accident loans, contact us, and we can answer them with a live team member. We value our relationships with our clients and are always there to help them fight for the full measure of justice they deserve. Get in touch with us today and you could receive the funding you need to take your fight for justice to the next level.