Many times, the fact that the plaintiff is dealing with injuries, coupled with the mounting bills and lack of income, will make them desperate to settle for whatever the defendant is willing to offer. Even if it is a much lower number than what your attorney might have projected that your case is worth, you may be desperate to get your hands on any money at all. This will take you to make an unwise decision and say yes to the first amount offered, no matter how low.
The insurance companies have lived through plenty of situations similar to yours and can easily visualize your dire situation. They know that it is likely that you will accept a low offer because of the financial pressures of your life. They also know that the longer it takes for the case to be resolved, the higher your financial anxiety will be.
Getting a will give you not only that much-needed breathing room, but it will also put you in a position of strength when it comes to negotiating. These loans offer you a way to end up with a much higher settlement amount.
Do you have to repay the money?
This is a very important question because right now you don’t need to add any more worries to your growing list. That is why you can rest assured that should your car accident claim eventually be denied, you do not need to repay the loan.
This type of lending arrangement is known as a non-recourse loan, and what it means is that the car accident loan is secured solely by your future settlement, nothing else. If, for whatever unexpected reason you end up not winning your case, the lending company will have no other legal recourse available to recover the money from you. In short: you receive no settlement and you make no payment. That’s it.