Car accidents are life-threatening and result in tremendous expenses that make living a normal life difficult. You may be suffering from personal injuries that cause you a temporary disability, preventing you from working full-time or performing normal day-to-day activities. Some car accidents are more severe than others and can be quite costly due to medical bills and other financial burdens. When you are waiting for your settlement and are struggling with your damages, you can apply for a car accident loan to help carry you across any financial deficits. This will help prevent you from being buried by bills until you receive compensation for your damages. You can request the help of an experienced representative to learn more about how to apply for a car accident loan. 

Car Accident

You should consider getting lawsuit funding when you get into a car accident and have many damages to cover. Car accident settlement loans exist to provide you financial relief until you receive your settlement. You can learn more about the process from a loan representative. Call Pinnacle Legal Funding today for a free consultation

What is a Car Accident Loan?

When you get into an auto accident personal injury, you may need money to help keep you afloat until you receive a settlement. Similar to a cash advance, these lawsuit loans help you pay for medical bills, cover income loss and other expenses you may experience because of your damages. They serve as a form of financial protection while you are dealing with your personal injuries. 

How Do You Qualify For a Car Accident Loan?

Car accident settlement loans have a few requirements that bar applicants from receiving legal funding. 

You Have a Strong Case

After you get into a bad car accident, you may apply for lawsuit funding if the other party is at fault for your damages. This means that the other party was distracted while driving, aggressively driving, having road rage, or breaking traffic laws. Your attorney has to prove that the defendant is the direct cause of your car accident. 

Your Attorney is Working With You

Car accident loans are only provided to those who are already working with an attorney. Your attorney should be contingency-based, where they are paid after you receive a settlement. You can’t apply for lawsuit loans if your case is immature and you aren’t sure if it is strongly backed by evidence yet. First, contact a lawyer, get their opinion on your case, file a lawsuit, then you can apply for lawsuit funding. 

What Are the Benefits of a Car Accident Loan?

Unlike most loan processes, car accident loans are very simplified and require less time to process.

No Risks Attached

You can receive legal funding with no recourse, meaning if you lose your lawsuit, you do not have to pay back your loan. If you do win your lawsuit, then you will have to pay back the loan and the interest. However, your settlement will still be large enough to cover the cost of the loan. 

Fair Application Process

Car accident legal funding is surprisingly straightforward to do, where the application is straightforward and quick. Additionally, the terms and agreements for the conditions of the loan are concise and clear. The loan is very transparent and fair, where you should understand the terms you agree to. 

Quick Cash

After you apply, the approval process is swift. You can expect to receive legal funding within a day or two. This helps you get the money you need quickly to help cover the costs of your damages before you receive a settlement. 

Negotiable Interest Rates

There is a broad range of interest rates available on car accident loans. The average interest rate is around 44%, although it can be anything between 20% to 60%. You can browse through interest rate options, allowing you to decide what plan works best for you based on your unique situation. You can work with a loan representative to help guide you through your loan options. 

Usually Credit Doesn’t Matter

It is stressful to be in a tough financial spot, and your credit prevents you from getting the help you need. Legal funding typically doesn’t always require good credit, and you may not need to worry about a credit check. 

How Large Are the Amounts for Car Accident Loans?

The amount of legal funding you can receive from your loan is entirely dependent on three factors: damages, liability, and insurance coverage. This amount can range anywhere between $500 to $250,000 or more. Because your circumstances are unique, your eligible amount may be completely different from someone else. 


After your car accident, if your personal injury is very severe, then your legal funding may be higher. Severe injuries include brain trauma, spinal injury, broken bones, deep lacerations, facial scarring, and injured organs. If you are permanently disabled, this can also increase the amount of your settlement. Because of this, the more likely you can receive a large loan. 

Insurance Coverage

Your insurance may be able to cover some of your damages while you wait on your settlement. This depends entirely on your policy, so you can speak with your insurance company to find out what expenses they can pay for you. Typically, this includes property damage, but it may also provide coverage for medical bills. If this is the case, your legal funding will likely leave out the number of medical bills you have to pay. However, wage loss and projected missed income is something that can be considered for your loan. 


You may be partially at fault for your injuries, but the other party may still be held liable for your damages, even if this is the case. In some states, if you are over 51% responsible for your injuries, then you are the one held liable, not the defendant. However, in other states, if you are even 99% reliable, the other party can still be required to pay you compensation for the 1% of damages they caused. It is best that you are entirely not at fault for your damages so that you have a strong case winning a lawsuit. The stronger the evidence and the higher the estimation of your settlement award, the more likely you will be approved for a loan. 

A loan representative can help explain this to you and inform you of what factors influence your legal funding.

What Makes a Car Accident Lawsuit Eligible for Lawsuit Loans?

The defendant can be held liable when you are not or are partially at fault for your damages. They owe you compensation for your injuries and should be required to pay you a settlement. However, some car accident cases are difficult to prove. Lawsuit loans require you to have a strong case before you can receive funding. Here are some examples of car accident cases that can support your application.

Traffic Camera Footage

If your car accident was caught on a traffic camera, this might make a strong case for you. This is especially if the other was caught breaking a traffic law. It is possible that the other driver was speeding, not staying in their lane, passing red lights, and not yielding to stop signs. Your attorney can find this out for you by reviewing the footage to observe any visible traffic violations.

Poor Driving History

Your attorney may pull the defendant’s driving record, and if they have a history of impaired driving, this can work in your favor. If the other driver had repeat traffic violations and received a history of citations, this can show that they were reckless in your case as well. 

Proof of Substance Abuse

If the defendant took a drug test that came out positive for drugs or alcohol, this could make a strong case. When the police officer observes that the other driver is exhibiting strange behavior, they will administer a test. If positive, they can also be penalized for aggressive driving, resulting in a higher settlement. 

Case of Punitive Damages

When the other driver was grossly neglectful in their actions, such as speeding or road rage, you are more likely to win a lawsuit. Punitive damages are a way to punish the other party and increase the settlement amount for the plaintiff. 

Witnesses Were Present 

If there were any eyewitnesses present at the scene, they can testify on your behalf in court. This can strengthen the case and be used as additional evidence. 

Proof of Distracted Driving

Your attorney can subpoena the defendant and discover whether they were texting or on their phone. This can prove that the other driver was responsible for your injuries. 

Black Box Data

Most cars have a data storage box that collects data on the car’s performance. When reviewed, it is possible to see when the other driver braked and their speed before the crash. This can be used as proof that the other driver either was breaking laws, not paying attention, or that the car malfunctioned in some way. 

What Kind of Damages Can Be Paid for by Car Accident Settlement Loans?

After you’ve been in a catastrophic car accident, you will experience many damages that can result in unaffordable expenses. A car accident cash advance can help you overcome your financial deficits by providing pre-settlement car accident money to pay for these costs. While every car accident is different, if you are not at fault for the collision and have a strong claim to a car accident settlement, then it is likely that your damages are eligible for pre-settlement auto accident loans. Some of the damages you may have experienced include property damage to your auto vehicle, personal injuries, pain and suffering, wage loss, and wrongful deaths. 

Auto Vehicle Damages

When the damage to your vehicle after a bad car accident is too much, your insurance policy may not cover the total amount. For example, this is when the other driver left $20,000 in damages after they crashed into you, but your insurance coverage only pays for $10,000 to repair your car. In some instances, the insurer will only pay damages up to the value of your vehicle. If the repair costs go far beyond the value of your vehicle, then the insurer will declare a total loss. You instead get a fair market value or actual cash value, and then they take possession of your car. In other cases, the deductible is too expensive at the time for the coverage, and you’d rather get a settlement from the other party. When this happens, you can include this amount when applying for pre-settlement auto accident loans. The other party’s insurer, who is at fault for your car accident, can later settle with you and provide compensation so that you can pay back your cash advance. 

Medical Bill Damages 

Almost every car accident can result in injuries to your body. The most common forms of injuries include bruises, scratches, lacerations, broken bones, whiplash, brain trauma, fractured rib cages, and spinal cord injuries. This is why medical expenses can be very costly, as a car accident can result in surgery. Your car accident cash advance can include medical bill damages, such as on-site stabilization after a devastating accident, emergency room treatment, and medical monitoring. You can also include the costs of surgery, medical tests, follow-up appointments, x-ray scans, and pharmaceutical pills. Therapies and other treatments can also be included. When you are not at fault for your injuries and have a strong compensation claim, your pre-settlement car accident loan can be used to help cover the cost of your medical bills. 

Pain and Suffering Damages

Pre-settlement funding can also help cover the cost of any pain and suffering you experienced. Sometimes you may be experiencing depression, post-traumatic stress disorder (PTSD), anxiety, and other symptoms of emotional turmoil after a terrifying accident. You might also feel hopeless, shame, and embarrassed if you have become temporarily or permanently disabled and unable to continue the life you lived. Physical discomfort, such as severe pain, is also an all-too-common result of a bad car accident. A cash advance can help support you through this trauma, where you can pay for the therapy and support you need to get you through these difficult times. 

Income Loss Damages

When you get into a terrible car accident, it is likely that you will have to take time off from work. Your damages may have caused you to get injured so badly that you cannot work part-time or full-time. If your injuries are so severe that you cannot return to your normal line of work after recovery, you will need help getting new certifications and job placement. Pre-settlement funding can be used to help cover the cost of wage loss. A pre-settlement auto accident loan can cover not only current income loss but also into the future should you have to recover for several months. Your car accident settlement may take some time before it becomes available to you, but instead of struggling, you can use the cash advance to help you through financial struggles. 

Wrongful Death Damages

Motor vehicle accidents are often fatal and can result in the deaths of the driver or passengers. If you are a family member or survivor of a car accident victim, you can use an auto-accident settlement to help you recover the cost of your losses. Accident lawsuit loans can be used to cover some wrongful death damages, such as funeral and burial costs. You can also use a car accident settlement loan to pay for economic and non-economic damages unique to wrongful death victims. For example, loss of guardianship, companionship, consortium, and other non-economic damages are ones that are hard for the surviving members to cope with. The deceased may have been supporting the entire family, which is why their earning capacity may be included in the settlement. You can use pre-settlement funding to cover bills that the victim may have been paying for.

How Are Car Accident Cash Advance Loans Estimated?

When your lender calculates the cash advance you are applying for, the focus entirely upon the amount your car accident settlement will be.

Why is Interest So High On Pre-Settlement Auto Accident Loans?

When browsing for car accident settlement loans, you will want to get the lowest interest rate possible. Legal funding is often believed to be high in cost, from between 27% to 60% in interest rates. Many borrowers consider these loans risky as the interest rate is typically higher compared to other loans. 

The risk associated with a car accident cash advance is high because you might not win your case. This is why lending money for car accident settlement loans can be so expensive. Rest assured, you are not being ripped off as much of the interest rate goes to overhead expenses and losses that the lender has to pay for. For example, if you apply for a $10,000 loan with a monthly interest rate of 5% and pay it back in 5 months, you will need to pay back $12,500. The revenue from this for the lender is lower, where there are losses for borrowed capital and other costs that the lender must cover. The revenue is far less than the 5% they get back.

Can I Get a Higher Settlement With a Pre-Settlement Car Accident Loan?

Because you are not desperate, you won’t accept low-ball offers from the other party’s insurance company. A pre-settlement car accident loan allows you to stay out of financial trouble, where you can pursue your car accident lawsuit without stress or worry. You will have additional time to seek a higher settlement amount while you can secure funding to cover your expenses. During the trial, you’ll also be able to live comfortably while waiting for a higher settlement amount. You can consider including your pre-settlement auto accident loan fees in your settlement to help cover its cost while you were unable to pay for your damages.

What Fees Do Pre-Settlement Car Accident Loans require?

When applying for your pre-settlement car accident loan, you will not be expected to pay anything upfront. You also won’t be expected to make monthly payments, unlike most loans. Other fees that may be added to the principle of lawsuit loans include the origination fee and interest. However, you don’t have to be concerned with fees and other payments until your settlement is provided.

How Does Interest Work on a Pre-Settlement Auto Accident Loan?

Every car accident settlement claim is different, where each loan is estimated based upon a case evaluation. Additionally, the interest may be compounded differently, where you might have a monthly or a more frequent compounded interest. In general, the loans can depend on how long your case lasts. If the case is longer and is expected to take years, the interest may be lower. When the case takes only a few months, the interest rate may be higher. Also, if your settlement amount is higher, then the loan amount is expected to be higher. Remember, it is essential that you speak with your lender as the interest rate is entirely dependent on your case.

What Happens Next if You Do or Don’t Win Your Case?

Based upon the results of your settlement case, you may or may not have to pay back the loan with interest. If you win your case, this means that you will have to pay the total amount of your car accident loan along with any fees and interest that you accumulated for the duration of the loan. This is regardless of if your settlement award included the loan’s fees. However, typically the settlement should be large enough to match your damages, which is similar to the amount of lawsuit funding you received. However, if you don’t win your auto accident settlement case, you do not have to pay it back. Even when you do not win your car accident lawsuit, you will not be expected to pay for any of the interest or the principle itself. That is because accident lawsuit loans are designed for borrowers who are sure that their motor vehicle accidents will result in a settlement.

Get Help from Industry Experts

You shouldn’t have to struggle with the costs of your damages without any financial help. While you are waiting for your settlement award, consider applying for lawsuit funding so that you and your family don’t have to worry about medical bills and other costs. Once you receive your loan, you don’t have to worry about paying it back until the lawsuit decision has been made. There are no risks attached, and if you lose your lawsuit, you do not have to worry about massive debt. When you win the settlement, you can pay back the loan and interest. You can work with a supportive loan representative to help you negotiate loan terms and an interest rate that works for you. Contact Pinnacle Legal Funding today for a free consultation.