Getting money before your car accident case is settled is not an easy task. While car accident settlements are in place to help victims get back on their feet, they usually involve many legal battles with the insurance companies.
It can take several months or years for things to normalize after you’re involved in an accident. However, this does not mean that your financial obligations will stop. You will still have to pay for your groceries, rent or mortgage, and incur medical expenses. Your household may have to survive without a steady income if you or your spouse can’t work during recovery.
If you have been involved in an accident and need to pay your bills, here are some options that can work for you as you wait for settlement:
- Pre-settlement loans
- Charitable organizations
- Health insurance
It is prudent to discuss any financial decision with your personal injury attorney or a reliable financial advisor. All three options have advantages and pitfalls that you should be aware of.
Pre-Settlement Car Accident Loan
A pre-settlement car accident loan is a loan that you can get before your actual settlement. When applying for this type of loan, the lender will want to review the details surrounding your case and estimate your settlement’s value because each settlement case is unique.
Depending on the evaluation, the lending company may let you borrow the entire estimated settlement amount or part of it. You will have to agree to pay the company when your case settles.
The great thing about a pre-settlement loan is that it is dependent on the settlement. If you don’t get a settlement from your lawsuit or claim, you are not obligated to repay it!
On the downside, pre-settlement loans are not cheap because lending companies charge a monthly fee for their services. If you are not able to or do not want to pay the fees, this type of loan may not be for you. Additionally, if your case settles for a lower amount than expected, you will owe the company the sum that you originally borrowed.
If you opt for a pre-settlement loan, it will help if you did extensive research before borrowing. While some companies genuinely want to help people in need, others might take advantage of your situation and charge exorbitant fees.
Health Insurance
If you have health insurance, an insurance claim can help you reduce some of your medical bills. Specific policies have emergency and accident insurance services. Contact your insurer to discuss your situation and the available relief options.
A vital step during the whole process is to claim through your health insurer, and not your car insurance. If you are waiting for a car accident settlement, you will most likely have filed a lawsuit or claim against your vehicle insurance company. However, if your car insurance company pays your hospital bills instead of your health insurance, that will serve as your settlement.
Waiting for settlement is challenging, but worth it. By waiting, you can request that the insurance company reimburse all your expenses, not just the first ones. Going through your health insurance allows your claim with your car insurance to continue, and you can include your ongoing costs.
Charitable Organizations Might Help
Getting medical care after a car accident is expensive, and the expenses can take a toll on your finances. Do not be ashamed to ask for help from charitable organizations during the difficult period. If you are struggling to pay your bills and put food on your table, speak to your attorney. Although your lawyer won’t lend you money to cover your expenses, he or she will probably know charitable organizations that can assist you.
Additionally, if the accident left you permanently disabled, your attorney might advise you more about the Social Security Benefits you qualify for.
You may have challenging financial moments after you are involved in an accident. However, before taking any loans, or making any significant financial decisions, it is wise to speak to your attorney or financial advisor to understand your options. While most lending companies will be willing to help you out during the difficult economic time, some of them may take advantage of your situation and charge excessive fees.
