Pre-Settlement Funding For Car Accidents
Unless you live in a large city, driving is one of the fastest ways to travel. Many towns don’t have a transit system, or if they do, the stops might not be where you work, live and play. Driving also gives you the freedom to drive whenever you want instead of waiting for a scheduled bus.
According to the United States Department of Transportation, the average American drove 36 miles per day in 2016, which comes out to more than 13,000 miles per year! Most of these trips are routine, where a driver goes to and from their destination safely. However, there is always a risk of getting involved in an accident.
If you’re injured, your claim could take months to process, depending on the nature of the accident and the details of the case. During that time, you might find it difficult to cover your bills without going into debt. One way you can avoid going into default is by selling a portion of your future expected settlement proceeds for cash you can spend sooner.
Types of Auto Liability Claims
Not all car accidents are the same, which means that no two claims will be alike. Depending on the driver’s insurance, you may not even need to go to court to have some of your costs covered. However, most claims fall into two broad categories: property damage or personal injury.
Property Damage Claims
Property damage claims help cover the cost for any damage your own vehicle or property received during the accident. Your claim can sometimes cover items that were inside your car or property, such as a laptop or cellphone. If the driver that caused the accident has good insurance, their plan could cover all this damage and even pay for a rental while your car is in the shop.
When you are in an auto accident, you file your property damage claim with the liable party’s insurance company. In most cases, the cost to repair a car is set, along with the cost of replacing it if it’s totaled. Insurance companies often follow a set guide based on the car’s make, model, mileage, and age to understand its value. These set guidelines make it easier for them to process a claim, which can reduce the amount of time you have to wait to receive your money.
Personal Injury Claims
Personal injury claims are to cover any medical costs you had because of the crash, including a trip to the hospital and ongoing physical therapy, as well as pain and suffering and potentially the cost of any lost wages.
These claims can often take longer than property damage claims because they are more complex. A mechanic can determine the cost of repairing a vehicle in a few short hours, but every person recovers from injury differently, and will require care that is unique to them.
What happens if your claim exceeds driver coverage
When a driver chooses an insurance policy, they can choose plans with varying levels of coverage. While all states may require all plans meet a minimum level, there are usually a few plans for cost-conscious people to choose between. If they are at-fault for an accident, their insurance policy will cover costs up to that limit. If the cost of your care is more than this limit, the insurance company may not offer to cover it.
When you need additional funds, there are a few options at your disposal to cover the costs of your medical bills. These include:
- Your own health insurance: If you have health insurance, your plan could help cover some additional costs
- Collecting from the driver: In some cases, you may be able to sue the driver personally to help cover your bills
- Filing additional claims: If your lawyer feels that another party might share responsibility for your accident, such as the city planning commission or car manufacturer, they can file a lawsuit against them as well
Not every option might work in your case. You should consult with your attorney to explore all possible options.
Getting Settlement Money While You’re Waiting For a Claim
When you’re waiting for your claim to be resolved, your bills can pile up. In addition to any medical costs, you have your rent, groceries, and other costs that you might not be able to cover if your injuries took you out of work.
One way you can avoid going into debt is by using pre-settlement funding. You can sell a portion of your expected settlement and use that cash to cover costs while you wait for your lawyer to resolve your case. If you’re waiting for your lawsuit to settle and need cash now, give us a call. We can help you find options for how to cover costs while avoiding going into debt.
Peachtree Financial does not offer legal, tax, or financial advice. Please contact independent professionals for those services.