Car Accident Settlement Advances

Car accident settlements involve the at-fault party conceding liability, and the victim accepting money in order to release the at-fault party from further liability. If you've suffered injuries from a car accident, litigation funding can help you make ends meet by providing a cash advance on a pending settlement while your lawsuit is pending.

Can I Get an Advance on My Car Accident Settlement?

Yes. Generally, most applicants can receive about 10 percent of the settlement they expect to get from their case. By conferring with your attorney, you can determine the most appropriate funding amount for your case.
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Being involved in an automobile collision can cause tremendous financial stress, leaving you to wonder if you can get an advance on a car accident settlement. Perhaps you have been unable to return to work due to your injuries, or maybe you have other accident-related expenses that are challenging you to make ends meet. While car accident settlements can take time to resolve, sometimes a year or longer. An advance on your car accident settlement can help you bridge the financial gap between your accident and receiving the compensation you need for your injuries. 

How Do You Qualify for an Advance on a Car Accident Settlement?

Like most claimants, you might be anxious to find out if you qualify for an advance on a car accident settlement. Qualifications include:

  • You are involved in a personal injury lawsuit
  • You were seriously injured in the car accident.
  • Your lawsuit has robust merits against the at-fault party.
  • You are being represented by an attorney on a contingency fee basis


Your lawsuit needs to be filed soon or already have been filed in the proper court of law. We will discuss your case with your car accident attorney to make sure we fully understand the details and can accurately determine how much your claim might be worth. We fund cases that we believe have a strong chance of success. To learn more about an advance on a car accident settlement, click here.

Can You Receive Pre-Settlement Funding If You Have Poor Credit?

Unlike traditional loans and forms of credit, pre-settlement funding does not rely on your credit score or report to determine your eligibility. Since we are repaid with your settlement proceeds, we do not consider your credit when making our determination. Your credit has no influence, whether good or bad, over your eligibility or the amount of pre-settlement funding for which you qualify.

How Much Pre-Settlement Funding Would You Receive?

The amount of funding a qualified plaintiff receives differs from one person to the next and depends on a few factors. These factors can include:

  • The type and severity of the injury you sustained
  • The evidence supporting your claim
  • The circumstances of the accident

Generally, most applicants can receive about 10 percent of their expected settlement or value of their case. By conferring with your attorney, we can determine the most appropriate settlement funding for your case.

How Can You Use the Funds?

Pre-settlement funding does not have to be spent in any specific way. There are no restrictions on how you use the pre-settlement funding, nor do you need to prove how it was spent. We give you the freedom to use the funding as you see necessary. You can use it to pay everyday expenses, credit card bills, medical bills, business-related expenses, rent or mortgage, utilities, tuition, other bills you have fallen behind on after your accident, or whatever else you need to pay for at that time. Plaintiffs appreciate the flexibility in how they can utilize their funds to best meet their needs. 

What Happens If You Lose Your Case?

Losing your case can be extremely discouraging and disheartening, and the last thing you want to worry about is paying back your funding when you are already under financial stress.  We only use a non-recourse funding strategy. If you lose your case, you owe us nothing. Only if you breached the purchase agreement, committed fraud, or used false information to apply and obtain your pre-settlement funding would you have to pay any of it back should you not win the case. 


Settlement Cases We Fund

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How Do Pre-Settlement Advances for Auto Accidents Work?

If you are ever the victim of a car accident, you will likely suffer financial losses and even mental and emotional anguish. A settlement from the at-fault party's insurance company is meant to pay you for these damages.
A gavel with a toy car crash in the background.

You might have heard about car accident settlements, but you may not know how they work if you have never pursued one. At their most basic, settlements involve the at-fault party conceding liability, and the victim accepting money in order to release the at-fault party from further liability.

If you are ever the victim of a car accident, you will likely suffer financial losses and even mental and emotional anguish. A settlement from the at-fault party’s insurance company is meant to pay you for these damages. However, sometimes depending on the extent of the injuries and financial loss, an injury lawsuit might be necessary to recover damages. 

Here are some of the steps involved in the settlement process.

File Your Claim

In order to receive money from the at-fault driver’s insurance, you must first file a claim. Depending on the insurance company, you might do this online, through an app, or over the phone. Be prepared to provide pertinent information about the accident. In some cases, filing another claim with your own insurance company is also helpful and necessary. For example, in states that require Med Pay, those injured individuals will need to file a claim through their own medical payments policy.


After the insurance company receives your claim, they will begin their own investigation. They want to determine how and if their insured is liable, as well as the extent of your injuries. When they investigate your accident, they will use various pieces of evidence, such as the accident report, witness statements, and your medical records. In addition, they may monitor your social media accounts or even conduct surveillance if they suspect fraud.

While your case is pending, you should hire an attorney and complete your own investigation. Since insurance companies are incentivized to limit their payouts, it is helpful to have an attorney on your side who can objectively investigate what happened and determine the severity of your injuries. These two factors heavily impact car accident settlements when it comes to how much is offered and if the case will settle or move on to trial. 

The Insurance Company’s Offer

When their investigation is complete, the insurance company will approve or deny your claim. If your claim is denied, the company believes its customer is not liable for your injuries. Denials are often based on technicalities. Make sure the insurance company provides you with a written explanation of the reasons for the denial, so your attorney can look over it to see if it should be challenged. 

If your claim is approved, the company accepts liability on behalf of its insured and will tell you what they are willing to pay you for your damages. The compensation’s coverage can include:

  • Pain and suffering
  • Scarring and disfigurement
  • Mental anguish
  • Lost wages
  • Medical bills

A car insurance company’s initial car accident settlement offer is frequently lower than the actual value of the case. Since the insurance company makes money by limiting their payouts, they seldom offer claimants an appropriate amount. As a victim, you can accept an initial offer or you can turn it down so your attorney can attempt to increase the offered amount. Several rounds of negotiating back and forth may occur before both sides come to an agreement.


If a settlement cannot be reached, mediation might be an option. During mediation, both sides meet with an objective third-party who acts as a mediator. This person can facilitate more discussion and negotiation. However, you are still not required to accept a settlement offer if you do not feel that it compensates you fairly for your losses. If you do agree to a car accident settlement offer, you will sign paperwork releasing the at-fault party from liability in return for compensation. 


If you cannot reach a settlement agreement, you can file a lawsuit to pursue fair compensation for your injuries. Your case will go to trial, and a judge or jury will determine if you should receive compensation for your damages and, if so, how much. The court will enter a judgment for the at-fault party or their insurance company to pay what you were awarded. 


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Think You Have a Case?

Call us toll-free at (877) USClaims to speak with a friendly funding specialist today.

Facts on Car Accident Settlement Cases

According to the National Highway Traffic Safety Administration, in 2019, there were nearly 6.7 million car accidents in the United States, which makes for approximately 17,000 accidents each day. Some 2.7 million people were injured and more than 36,000 killed. And not everybody has insurance.

Car accident claims settle much more often than they go to court for a number of reasons. Perhaps most importantly, settlements could mean a quicker resolution with less time and expense for both parties than a lawsuit. Whether or not a settlement is right for your case will depend upon how the negotiations go and whether being offered enough compensation for the  damages you sustained.

When a car accident claim is settled, the victim agrees to accept a specified amount of money in order to release the at-fault party from further liability. Litigation, on the other hand, occurs when the defendant does not accept liability or does not agree to settle for an amount that is sufficient compensation, forcing the victim to take the matter to court. But going to court has its risks, as sometimes a case will get dismissed, which would result in no compensation at all. Therefore, it is imperative that you weigh your options before deciding which direction you want your case to go. Car accident settlement cases have many benefits over those that move on to a trial.

Common Causes Of Car Collisions

There are many reasons why a car accident may occur. Some of the common causes of car collisions include:

  • Driving under the influence (DUI)
  • Distracted driving
  • Drowsy Driving
  • Speeding
  • Dangerous and defective roads
  • Reckless and aggressive driving
  • Wrong-way driving
  • Vehicle defects
  • Poor weather condition, such as ice or fog

Types of Car Accidents

The majority of accidents on the road are typically the result of negligence. As a result, this can lead to various types of car accidents on the road, including:

Types of Potential Injuries from an Auto Accident

While car accidents are clearly common occurrences, not everybody is prepared to deal with the aftermath. You’re shaken up from the incident, likely without transportation and, unfortunately, injured. Some of the common types of injuries involving victims of an car accident may include:

When severe injuries and disabilities result, steep medical bills can follow, making it impossible for the victim to cover their living expenses at the same time they deal with severe emotional stress. Considering all those factors, not to mention the potential of having to deal with criminal proceedings in some cases, a car accident claim can take time to reach fruition. We can help make things easier by providing the money you need to live while your car accident claim makes its way through the courts.

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What To Do After A Car Accident?

Wondering what to do after a car accident? A car accident is something no one expects. Not surprisingly, most drivers aren’t sure what to do after a car accident and may feel uncertain what steps to take next. However, taking the proper actions can protect your rights and increase the chances of receiving the maximum compensation for your injuries.
Two old fashioned toy cars are colliding in the air.

Protect the Scene and Get Help

It can be easy to forget what to do after a car accident in the heat of the moment. First, make sure you stay at the scene of the accident. Leaving the scene of an accident could be against the law. If anyone has injuries, call 911 or a local dispatch to get paramedics there at the scene as soon as possible.

You should consider protecting the scene and everyone in it, especially if it is dark outside. Turning on the vehicle hazard lights and setting up road flares, if available, could be helpful. To protect individuals at the scene, as well as any oncoming traffic, you might consider moving vehicles out of the roadway, if possible. If vehicles cannot be moved, everyone should wait in a safe location on the side of the road and not in their cars or the lanes of traffic.

Call the Police

No matter the seriousness of the accident, it’s always a good idea to call the police. When the officers arrive on the scene, you will need to tell them precisely what happened to the best of your ability. Do not speculate or make guesses. All of your information will be recorded in the police report, which can be used later as evidence of a claim.

Gather Evidence at the Scene

Today’s technology allows individuals involved in an accident to take pictures and videos at the scene. If you can, take pictures of:

  • The vehicles involved
  • Any injuries
  • The area around where the accident happened
  • Any specific objects involved in the accident, such as trees or traffic light poles
  • The condition of the roadways

Do not interfere with police investigations in order to take pictures. If you cannot do so at the time, make every attempt to take pictures and videos later.

You will also want to speak to any people who witnessed the accident and get their contact information. Your lawyer may want to use them as a witness if the case should go to trial.

Exchange Information with the Other Driver

The police officer who responds to your accident should facilitate the exchange of information. If there is no officer present, you will need to obtain the name, address, and phone number of the other driver and any passengers or pedestrians involved as well. It’s crucial that you exchange insurance information with the other driver by asking to see their insurance card.

Get Medical Care

Even if you do not believe yourself to be injured, it is still advisable to seek medical attention. Injuries are not always apparent right after the accident occurs, and many victims report that most of their pain does not present itself until two to three days later. You can go to an emergency room, urgent care, or even make an appointment with your doctor. Having complete records of your injuries can maximize the value of your insurance claim.

Hire a Car Accident Attorney

An attorney can provide further guidance on what to do after a car accident, especially regarding insurance and legal action. They can explain your rights and help you preserve valuable evidence. Generally, individuals involved in a car accident who hire legal counsel receive more money for their claim than those who do not. Most personal injury attorneys work on a contingency fee basis, meaning they don’t get paid until a settlement is received or the claim is won, and you don’t owe them anything if the case is lost. 

Unfortunately, the settlement process can take an extended period of time to resolve. In the meantime, you could be facing challenging financial times as you pay for medical treatment for your injuries, repairs to your vehicle, and possibly missing work if your injuries are severe enough. If this situation sounds familiar, USClaims can help.

News and Tips

Settlement Funds vs. Personal Loan On a Car Accident Settlement

Every car accident settlement where somebody is granted money, considers a few elements. This includes the seriousness of the injury, kind of clinical treatment, the length of recovery time, and conceivable long term impacts of the individual injuries.
A "settlement funds" sign pointing right above a "loan" sign pointing left.

Trying to make your ends meet while missing time at work after a car accident might have you researching getting a loan on a car accident settlement.  Knowing that you may have to wait for months or even more than a year to obtain compensation may have you wondering how you will stay afloat financially. But before you sign on the dotted line for a loan on a car accident settlement, take the time to learn about pre-settlement funding and compare your options. 

Downsides of Personal Loans on a Car Accident Settlement

If you are struggling to make ends meet, a personal loan might seem like a good idea. For some people they can be easy to obtain to meet immediate financial needs. Before making any decisions on whether to obtain a loan, however, you should consider the following facts:

Personal Loans Require Repayment Even if You Don’t Win

What happens if you end up losing your case? You won’t have the money to pay the loan, but you will still be personally liable for the debt you took on. If you do not receive any compensation for your injuries and are having problems making ends meet as it is, how will you repay a loan? Unfortunately, loans are not forgiven if you are a plaintiff who loses their case. With litigation funding, you pay nothing if your case is not successful and you have no personal liability if the amount you receive from your case is not enough to pay a litigation funder.

Required Monthly Payments

Another issue to consider with loans is that they typically require monthly payments beginning the month after you take out the loan. These required minimum payments can strain your budget if you are already struggling to make ends meet. If you fail to make a payment, you could face negative consequences such as reducing your credit score and collection actions. Litigation funding does not involve monthly payments; payment is not due until after the case resolves and the defendant pays the settlement or judgment.

Personal Loan Qualifications

You may not qualify for a loan on a car accident settlement. Most loans are approved based on factors like:

  • Your credit history
  • Your credit score
  • Your employment status
  • Your ability to repay the loan
  • Your assets

Litigation funders like USClaims do not look at your creditworthiness and do not consider any of these factors. 

The Benefits of Pre-Settlement Funding

If you compare the facts, the benefits of pre-settlement funding over a loan on a car accident settlement are clear.

You Pay Nothing Unless You Win

With pre-settlement funding, we take the risk. If your case does not result in a settlement or court award, you get to keep the funding and owe us nothing in return, a stark contrast to loans that still require the full amount to be paid. Your life can be stressful enough if you do not win your case; you don’t need the added stress of paying back a loan.

No Monthly Payments

Whereas loans require payments each month, pre-settlement funding does not. We do not burden you with monthly payments. If the funding’s purpose is to help you pay your bills, we don’t want to add another monthly expense to your budget. You receive your funding and do not owe us a penny until you receive your settlement or court award. At that time, your attorney will pay us from your proceeds, and you do not need to worry about the logistics of paying us for your funding.

Qualifying for Pre-Settlement Funding Is Easy

When you apply for pre-settlement funding, we do not check your credit report or even consider your employment or assets. Since pre-settlement funding is not a loan and is to be repaid from your injury compensation, there is no need for us to have such requirements. In order to qualify for pre-settlement funding, you must:

  • Be represented by an attorney on a contingency basis
  • Have a severe personal injury
  • Have a solid case against the defendant  
  • Have filed your lawsuit or will soon be filing a lawsuit

It’s not uncommon for plaintiffs to need money to pay for bills and miscellaneous expenses before receiving the compensation. If you have decided that you need money between now and receiving your injury settlement or court award, weigh the pros and cons of your options carefully. You do not want to cause yourself any more financial stress.

Recently Funded Cases

Car Accident Settlement Common Questions

A car accident can leave you injured, unable to work, and with a growing pile of bills as you try to recover. In addition to the medical bills from your injuries and the monthly bills of rent and utilities, there is the cost of repairing and maintaining your car after being involved in a car accident. Fortunately, if your accident was caused by the negligence of another person, you may be eligible for pre-settlement funding through USClaims to help you cover your bills while your case is pending.

Full Answer

Are Car Accident settlements taxable?

When it comes to the car accident settlement process, many people are unsure as to whether their personal injury settlements are taxable and whether they need to report their settlements on their tax returns. Generally, the answer is “no,” as lawmakers tend to believe that it is poor public policy to tax the monetary compensation of an injured accident victim. However, according to the Internal Revenue Service (IRS), compensation received may be subject to taxation in some circumstances and require being included in the tax return. Some state law may similarly tax compensation received on personal injury lawsuits. You should consider consulting a lawyer or financial advisor to learn more.

Full Answer

If you’ve been injured in an accident caused by a negligent driver, you have the right to compensation for your accident-related losses. In many cases, car accident claims are resolved through the settlement process with the at-fault driver’s insurance company. Unfortunately, in many cases, the insurance company may offer inadequate compensation and try to convince you that your claim isn’t worth its actual value. For this reason, you should consider consulting a personal injury lawyer, who could provide you with a good estimate of your claim’s worth. An attorney could then help you with negotiations towards a fair car accident settlement offer.

Full Answer

Unless you are a personal injury lawyer, you probably don’t know how much to expect from a car accident settlement following an accident in which you were injured. Car accidents victims can sustain severe and debilitating injuries, ranging from relatively minor soft tissue and muscular contusions to more serious traumatic head and brain injuries. You may have to undergo significant medical treatment and physical therapy or endure a lengthy medical procedure. Medical treatment after a car accident can cost a considerable amount of money, often reaching into the tens of thousands of dollars or even more to treat injuries caused by the negligence of another person.

Full Answer

If you were recently involved in an automobile accident, you might be wondering if you should call a car accident lawyer to secure representation. Injured victims who have not been through this experience before may not know what to do or where to turn.

Full Answer

When you are involved in a car accident, expenses can add up very quickly.  Unfortunately, while the expenses happen in a moment, the process of reaching a settlement from your accident can be a lengthy process.  With this challenge in mind, how can you get access to funds to help you through these challenging times?

To help you through the difficult process prior to receiving your settlement, you can take advantage of what is known as pre-settlement or litigation funding to get cash quickly.  Pre-settlement funding is sometimes referred to as a “lawsuit loan”; however, it is important to understand that it is not a loan.  When you use pre-settlement funding, you are selling a portion of your anticipated proceeds in exchange for a partial advance on the value of your case; usually 10% of the future value.  For example if the person who caused the accident had the minimum coverage of $15,000 per person for bodily injury then you could get an advance of $1,500.  

A benefit of pre-settlement funding is that it is a non-recourse cash advance.  As a non-recourse cash advance, if your case is ultimately unsuccessful, you don’t have to pay the litigation funding company anything.  This is a great way to get access to necessary funds without the stress of worrying about paying those funds back.

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