"I Need Money While I'm Waiting for My Car Accident Settlement. What Are My Options?"
IMPORTANT: Hensley Legal Group, PC is a law firm, not a loan service, and therefore CANNOT offer pre-settlement loans or ANY sort of financial assistance for individuals waiting for car accident settlements.
Car accident settlements help injured victims get back on their feet. Unfortunately, getting a car accident settlement typically requires a legal fight with the insurance company. It can take months, sometimes even years, to get the money you need to get back to your normal life after a car accident.
Meanwhile, your financial obligations don’t stop (and usually get even more complex) after a serious car accident. Medical expenses are an obvious source of financial stress. Then there are other services you may have to pay for if you’re too injured to do them, like daycare, grocery delivery, or home cleaning. At the same time, your household may have to go without a steady income if you or your loved one can’t work while you heal from your injuries.
While you’re waiting for the insurance company to get its
act together, how will you pay your bills?
Options for Financial
Assistance after a Car Accident
You have a few options for financial assistance while you
wait for your car accident settlement:
- Pre-settlement loans
- Health insurance
- Charitable organizations
Remember, before making any financial decisions, make sure
you discuss them with a trusted financial advisor or your personal injury
attorney.
1. Pre-Settlement Loans
A pre-settlement loan is pretty self-explanatory: it’s a loan you receive before you get your settlement. Many loan companies offer pre-settlement loans for those currently involved in settlement negotiations.
When you apply for this type of loan, the lending company
will review the details of your case and estimate the value of your settlement.
It may then allow you to borrow part or all of that estimated value. To borrow
that money, you’ll have to agree to repay the lending company when your car
accident case settles.
What’s Good about Pre-Settlement Loans?
The good thing about pre-settlement loans is that they’re dependent on your settlement. Typically, if you don’t get a settlement or award from your car accident claim or lawsuit, you are not obligated to repay the loan.
What’s Bad about Pre-Settlement Loans?
However, the bad thing about pre-settlement loans is that
they don’t come cheap. Many lending companies charge a flat or monthly fee for
their services. If paying a fee isn’t an option for you, then you may have to
look into other sources of financial assistance. Additionally, if your case
does settle, but it settles for less than you expected, you’ll still owe what
you originally borrowed, even if you don’t have the money.
Should I Apply for a Pre-Settlement Loan?
That depends. Not all lending companies are created equal. Some are predatory, which means they take advantage of people in desperate situations and charge them excessive fees. But some lending companies really do want to help people when they need it most. Regardless, make sure to do your research before agreeing to any pre-settlement loans.
2. Health Insurance
If you have health insurance, you may be able to reduce some
of your medical bills through an insurance claim.
Some policies have accident insurance and emergency
services. You should contact your insurance company to discuss your policy and
see what kind of relief is available for your situation.
Health Insurance vs. Car Insurance
The key here is to make a claim through your health
insurance, not your car insurance. If you’re waiting for a car accident
settlement, then you likely already have a claim with or a lawsuit against your
car insurance company. You only get one car accident injury settlement, so if
you decide you want your car insurance to pay your medical bills instead of
your health insurance, that will count as your settlement.
Waiting for your car accident settlement is difficult but
worth it. By waiting, you can ask the insurance company to compensate you for all of your expenses, not just your
initial expenses. For example, a quick car accident settlement may cover your
initial medical bills, but you won’t be able to ask for more money six months
later if your first surgery didn’t work and you need another one.
By going through your health insurance, you’re making sure your personal injury claim with your car insurance can continue to play out and include your ongoing expenses.
3. Charitable Organizations
Waiting for a car accident settlement is a tough financial
spot to be in. There’s no shame in asking for assistance from charitable
organizations to get you through this difficult time.
If you’re struggling to put food on the table, speak with your Indiana car accident attorney. Although your attorney CANNOT lend you money to help cover your medical, living, or other expenses during the settlement process, they will likely have a list of local charitable organizations that may be able to help.
In addition, if your car accident has left you permanently disabled, you may want to consider applying for Social Security disability benefits.
Speak with Your
Personal Injury Attorney for More Options
Before taking out a personal loan or making any major
financial decisions, speak with your personal injury attorney to learn more
about your options.
Hensley Legal Group focuses on car accident victims’ financial recovery so they can focus on what really matters: physical, mental, and emotional recovery. Our Indiana car accident attorneys strive to fight for your rightful compensation and resolve your car accident claim as quickly as possible without sacrificing its value, so you can stop worrying and start regaining your life. Call us at 317-472-3333 or contact us online for a free conversation about your claim.