Suppose you’ve been injured in an auto accident and have already reached your liability coverage limits from your own insurance company. In that case, you may be able to get additional financial assistance from a car accident loan.
How many car accident loans can you take?
That’s one of several questions we get a lot.
And while no rules are limiting how many legal funding you can take out; or that says how much funding a lender can offer. There are still some guidelines on how and when auto accident loans work best.
First, auto accident lenders don’t want clients that have already been involved in too many lawsuits or had too many personal injury claims filed against them.
Here’s what you need to know about taking out car accident loans after an injury has already occurred…
The average number of auto accidents in the United States
One in ten drivers can expect to be involved in an auto accident at some point during their lifetime. Even if you’re one of those lucky people who have never been involved in a car accident; there is still a chance that it will happen to you.
However, for most individuals and families—and especially after an injury or loss of income—the financial burden of an auto accident can be overwhelming without quick access to cash.
Fortunately, several options are available for obtaining car accident loans; learn more about these options below: Car accident settlement advances are made using a portion of your future settlement proceeds (or final payout amount) as collateral.
The Average Cost of an Auto Accident in 2021
The average number of car accident lawsuits in American courts: is 12,000 per year.
But What’s It Costing You?
Let’s start with a basic understanding of car accident loans and why they might be useful to you. If you or a loved one has been injured in an auto accident, you may be entitled to some settlement funds as compensation.
The amount you receive will likely depend on your injuries and how much damage was done to property; car accident loans can help ensure that, no matter what happens in court, you’ll always have enough cash for daily expenses.
Depending on where you live and your own circumstances, these loans typically don’t need collateral or other forms of security from either party, which is how they differ from traditional personal loans.
How Much Does It Cost to Fix Your Car After a Crash?
Auto damage can get pretty costly. According to Get Jerry, “The average American spent $1,986 on car repairs in 2019, which equates to around $192 billion total for the entire country.”
If you’re involved in an accident and don’t have comprehensive insurance coverage or enough cash on hand to pay for all your car repairs; auto accident loans can help bridge that gap between what you have and what you need.
What Are My Auto Insurance Options After an Accident?
Most car insurance policies offer at least $50,000 in Personal Injury Protection coverage, also known as PIP or no-fault coverage.
This means that you will have sufficient funds to cover injuries sustained in an accident if you are found to be partially at fault (typically up to about 15 percent).
In addition, your car insurance provider should offer underinsured motorist protection on all of its policies.
This means that if you are involved in an accident with a driver who doesn’t have enough liability coverage to pay for all of your medical bills and other damages—and don’t believe me when I say some drivers can be quite responsible—your insurer will make up the difference.
The Average Amount Paid Out in Settlements After an Auto Collision
People who have been in a car accident have reported a wide range of payouts for injuries and property damage.
Some companies will go to great lengths to avoid responsibility and payout, making it difficult for people with legitimate claims to receive compensation.
And although it is hard to predict exactly how much you will receive from your claim, research shows that most people can expect to be compensated between $10,000 and $50,000 if they are involved in an auto collision or accident.
If you’ve been injured in an automobile collision, our car accident loans can help you pay for the lawsuit and get a settlement that’s fair based on your injuries and other damages.
Why You Need Presettlement Funding After an Auto Accident
Presettlement funding is an option for those involved in a car accident lawsuit.
Auto accidents can be devastating to your finances and create havoc when you’re trying to pay for medical bills, repair or replace a damaged vehicle, deal with lost wages, and many other expenses.
If you’ve been injured in an auto accident and are being forced to pay out of pocket, you might be able to take advantage of presettlement funding.
With car accident lawsuit loans (also called car accident presettlement funding), you can get money immediately after your injury while you wait for your case to reach settlement negotiations.
What Is Presettlement Funding, Anyway?
This type of funding is designed to help you cover expenses like medical bills, living expenses, and other incidental costs related to your car accident injury.
This funding will payout immediately following a settlement or judgment in your favor—no need to wait for an insurance check or settlement from your own insurer.
Just remember: This isn’t free money—you will be responsible for paying back every penny of presettlement funding. (But when have you ever seen interest-free loans outside of infomercials?)
To find out if car accident lawsuit loans are right for you, call us at 800-961-8924. We’ll tell you everything there is to know about lawsuit funding—from how it works to whether it could benefit you financially.
Where Do I Go to Get Presettlement Funding?
The best place to get a car accident lawsuit loan is from your own insurance carrier.
Not only will they offer some of the lowest rates, but because you have built up a relationship with them (or because you are currently in good standing with them); you may be able to get one even if your policy has been canceled or non-renewed.
But sometimes, it takes a lot of time with insurance companies; i.e is when third party lender can help you get the funds much faster.
Also, when it comes time to settle your claim, there’s no need to ask for permission from anyone.
Just check with them on their interest rate and other terms, and proceed as planned.
Should I Use Third-Party or Direct Lender Funding for My Settlement Advance Loan Needs After an Auto Accident?
Some accident victims seek out third-party funding to bridge their financial gap before receiving a car accident settlement.
This is sometimes referred to as presettlement funding.
A quick search on Google will reveal many possible places to get presettlement funds.
But if you want to learn more about what to look for when searching for pre-settlement loans; how much you can expect to receive from a pre-settlement loan, contact us.
Where Should I Get My Loan from a Direct Lender Instead of a Third Party Processor?
It’s important to realize that any lender offering pre-settlement car accident funding will have its own set of terms and conditions that you will need to meet to secure a loan.
While these direct lenders are third-party lenders, they still operate differently than what many would expect.
This is why it’s so crucial that you work with a professional who can help guide you through all of your options.
To make sure that you’re working with someone who has your best interests at heart; we offer free consultations for anyone interested in learning more about our services.
We also offer free rate comparisons for people trying to figure out how much money they can qualify for from each lender. Contact us today and learn more about which company offers what!