Pre-Settlement Funding for Car Accident Cases

Car accidents are one of the most common causes of personal injury claims in the United States. Even a relatively minor collision can lead to unexpected medical bills, vehicle repair costs, missed work, and other financial stress—often long before an insurance claim or lawsuit is resolved.

Legal funding, sometimes referred to as pre-settlement funding or lawsuit funding, is one option some people explore to help manage expenses during a pending car accident claim. This information is general in nature, is not legal advice, and does not guarantee any outcome.

Why car accident claims can take time

Car accident claims often involve more than assessing vehicle damage. Insurance companies typically require extensive documentation and may dispute fault, injury severity, or the value of damages. Delays can result from:

• Police reports and accident investigations
• Medical evaluations and ongoing treatment
• Disputes over liability or comparative negligence
• Insurance coverage limits and exclusions
• Negotiations between attorneys and insurers
• Court scheduling if litigation is required

While the claim moves forward, people may face immediate expenses such as medical care, transportation issues, and reduced income, creating financial pressure during recovery.

What legal funding is (and isn’t)

Legal funding is typically structured as a non-recourse advance tied to a pending legal claim. In many arrangements, repayment is intended to come only from the proceeds of a settlement or judgment, if there is one. Terms vary by provider and by state, and the agreement itself controls.

A legal funding company does not provide legal advice, does not represent you, and does not influence how your attorney handles your car accident case. Your attorney remains responsible for legal strategy and is the best source of guidance about your claim.

Types of car accident claims we may consider funding

Every car accident case is fact-specific. Funding review focuses on whether there is an active claim with legal representation and whether available information supports responsible funding—not on predicting outcomes.

Claims commonly reviewed include:

• Rear-end, intersection, and highway collisions
• Serious injury claims involving fractures, head injuries, or spinal injuries
• Multi-vehicle accidents with disputed fault
• Uninsured or underinsured motorist claims
• Wrongful death claims, reviewed with particular care

Common ways plaintiffs use car accident legal funding

Legal funding is often used for short-term, essential needs while a claim is pending. Common examples include:

• Rent or mortgage payments and utilities
• Medical co-pays, prescriptions, and treatment-related travel
• Vehicle repairs or temporary transportation
• Childcare and household necessities
• Insurance deductibles and uncovered expenses

Legal funding is not meant to replace insurance, long-term financial planning, or public assistance. It is typically a temporary bridge, and the amount requested should be carefully weighed against potential repayment if there is a recovery.

How car accident legal funding generally works

The process usually follows these steps:

• Application: You provide basic information about your car accident claim and your attorney’s contact details.
• Case review: With your permission, we coordinate with your attorney to confirm claim status and review relevant documentation.
• Offer and decision: If approved, you receive a written offer explaining the advance amount, fees or charges, and repayment terms.
• Funding and repayment: If accepted, funds are issued as outlined in the contract. If there is a recovery, repayment typically comes from case proceeds. If there is no recovery, many non-recourse arrangements generally do not require repayment, subject to contract terms.

Questions to consider before accepting funding

Because lawsuit funding can be costly, it’s important to understand the details. Helpful questions to review with your attorney include:

• How are fees or charges calculated?
• Do costs increase over time?
• Are there administrative or processing fees?
• Can additional advances be requested later?
• What happens if the case takes longer than expected?

Talk to us about legal funding for car accident cases

If you are pursuing a car accident-related claim and need help managing expenses while the case progresses, we can explain how pre-settlement funding works and whether your situation may qualify.