When you’re in a major car accident, life changes in a big way. Ready or not, you may have to stay in the hospital, miss work, or at the very least, replace a totaled vehicle.
Car accidents very often catch us by surprise too! For example, random dates like Friday the 13th seem to have a higher rate of car accidents.
No wonder then that many people are interested in getting a car accident loan for financial assistance. It’s very difficult to continue on with life as it is, when something upsets the daily routine.
Now a car accident loan is not the same thing as insurance. This is not a prepaid type of plan, but actually refers to legal funding that might be available to motorists who have been in an accident.
How Car Accident Loans Work
Car accident loans are not repayable loans, but are payouts that you can take based on the estimated value of the settlement for your personal injury. The severity of the injury is what determines the amount of the car accident loan, along with poor driving habits.
Therefore, if you’re expected to get a large settlement, the car accident loan gives you more cash advance. You don’t get the money from an attorney, though an attorney will be part of the process. Instead, a lender will work with you and your attorney and advance you the car accident loan, once everyone agrees on the potential for a personal injury lawsuit.
The price of that “loan” could be as little as $1,000 or well over a million dollars.
Make Sure You Understand How Much Interest You’ll Need to Pay
Remember that even non-recourse lawsuit loans, which is essentially what these loans are, do come with interest – if you win!
If you don’t win, no loss, no gain. But if you win a settlement, you must pay interest to the lender. Depending on the lender and your contract, you may owe interest that’s roughly 15-20% of the upfront settlement.
For example, here’s a company that publishes its application form online – https://CarAccidentLoans.net/.
Some lenders give you a fair deal, but others will take advantage of confused and vulnerable victims and may charge much higher interest rates.
Hire an Attorney to Get a Better Settlement!
An attorney can give you advice on reading and accepting a car accident loan contract, in addition to determining a fair settlement for your injury.
Your attorney can steer you clear of any predatory lending companies or bad contract deals that would not match the full settlement coming.
The good news is that once you get in contact with a recommended lender, you could get your money in as little as a couple of days.
Why Not Just Wait for a Settlement?
Simply put, getting your money for a personal injury settlement is going to be a while. The decision could take a week or it could take years on end to establish liability and reach a settlement out of court or possibly go to court!
Would you rather have your money now or much, much later? That’s the basic thought behind car accident loans. Once you’re in a wreck, you might have massive bills to pay.
In fact, one of the tactics another person (or their defense lawyers) might use against you is to low-ball you an offer in hopes of you taking it now, rather than prolonging a court battle. But that’s not fair to you. A car accident loan gets you the money you need now, to cover your most important expenses, which might include loss of work, medical bills, and legal bills.
Since this is not a traditional loan contract, you don’t have to “qualify” in the same way you would a bank loan. What matters is the severity of the accident and why it was the other motorist’s fault.
If you’re seriously injured, and capable of getting an attorney to fight for you, that’s the only qualification you need. We can’t say for sure what injuries are covered, but definitely major injuries (head trauma, fractures, even soft tissue damage), and probably some lesser injuries too. You just have to talk to an attorney that’s experienced in these matters.
Speaking of which, it’s very important to talk to an attorney about your case as soon as possible. Don’t delay seeing a doctor and don’t delay talking to an attorney about the case.
Once you talk to an attorney they can advise you about a reasonable settlement amount. Your lawyer is the main point of contact, but not necessarily the first. You can still reach out to a pre-settlement car accident loan company for a free consultation. Then, you fill out an application and the company talks to your lawyer about details of the case.