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5 Foremost Statistics of Car Accident Loans You Should Know

Car Accident

If you have ever filed an insurance claim for a car accident, you know how tedious the process can be. It can take a long time before the underwriters settle.

During this time, there may be financial implications for you. It could be in the form of bills arising from car damages. You may also have to contend with medical expenses from injuries.

Sometimes, there may be lost wages if you are depending on the vehicle as a source of income. You may also be unable to work for an extended period as you heal.  

The good news is that you can find a quick fix with car accident loans. Our article will share some interesting statistics of car accident loans you should know. But first, let us start off by understanding exactly what they are. 

Car Accident Loans; What Are They?

Car accident loans provide funding to help ease financial burdens as you wait for car accident settlements. They are attractive because they are risk-free and easy to access.

And, lenders will not look at your credit report to determine whether you qualify. That means you enjoy competitive interest rates, even with a poor credit score.

It gets even better. The lenders will only seek payment once you receive your car accident settlement. It essentially means that the money you get is not a loan, rather a cash advance against the proceeds you will get.

The money from the loans can go towards your daily living expenses. It saves you from having to borrow from family and friends. You can also avoid the high cost of traditional loans or resorting to using your credit card.

And best of all, since you only make the payment once you receive the proceeds, there is no pressure on monthly repayments. Sounds interesting right? Well, you can find out more about car accident loans by clicking on the link.  

Interesting Statistics Around Car Accident Loans 

1. Global Car Accident Statistics 

According to the CDC, a staggering 1.5 million people die on the roads every single year.  3,700 people die every day due to crashes. Cyclists, pedestrians, and motorcyclists take up over half that number.

Non-fatal injuries that lead to disabilities are as high as 20 to 50 million. By the year 2030, fatal and non-fatal injuries will cost the global economy over $1.8 trillion.

Without a doubt, road safety is a critical issue that has long-reaching effects.  

2. Car Loan Funding Usage

You may be wondering what a majority of recipients of car accident loans use the funding for. Many people will use the money to pay rent and avoid foreclosure.

It makes a lot of sense if you take into account the fact that 78% of families within the US live paycheck-to-paycheck. They only manage to put away 3 weeks of reserve funds for rainy days. This brings us to statistic number two. 

3. Length of Accident Claim Settlement

You would think that insurance companies take a short time to settle claims if all the documents are in order. But, it can take anywhere between 6 to 12 months to settle. And, this applies to a case where you do not file a car accident lawsuit. If the case reaches the court system it will take a much longer time.

Now, let’s go back to the point we made above. Families only have enough reserve funds to last for 3 weeks. After that time, it will be a real struggle to survive. During this time, applying for car accident loans can provide some relief.  

4. Car Funding Approval Rates

One thing that makes car loans so attractive is that the qualification process is not as stringent.  If you have ever had to apply for a traditional loan, you know how stressful the process can be. You have to be patient as the lenders run credit history checks. Poor credit scores mean high-interest rates on whatever amount you borrow.

Car funding approval ratings are as high as 78%. It is only in rare cases that lenders will turn down an application. Do note that to qualify you must have an active lawsuit. Your lawyer must also approve of the third-party legal funding.

Your case should be strong enough, thus improving your chances of winning. Remember the funding company will be assuming all the risk. They would not want to sink their money into a case that could see them losing the cash advance they give you.  

5. Car Accident Settlements

It is interesting to note that out-of-court settlements for personal injury cases are as high as 95%. Up to 57% of car accident cases favor plaintiffs.

Now, what happens in the case that the defendant wins the case and you have a car accident loan? Well, as we stated above, you only pay the funding company when you win the case. The non-recourse clause removes any obligation on your part to use your money to repay. The collateral for the loan is your settlement.   

Final Thoughts

Reading statistics on road accidents can send a shiver down your spine. In the worst-case scenario, the result is fatalities. Those who survived may have to contend with disabilities or other implications.

Without a doubt, such times can be crippling on so many levels. We are talking about physical, emotional, and financial implications.  

Taking car insurance is a legal requirement. It provides compensation in case you get into an accident. The underwriters will take care of medical bills and damages depending on the cover you take.

But, claim settlement can take a long time. During this period, you must continue to take care of living expenses. If the accident impacts your ability to earn an income, you may need help. Car accident loans provide funding that can tide you over during this time.

What is a risk-free cash advance? What this means is the funding company gets its money back if you win the settlement case. And, you can qualify for the loans even with a poor credit score.

We have shared some interesting statistics you need to know. But, do take the time to do a little bit more research. You never know when you might find yourself in need of a helping hand.

More on this topic:

Understanding Your Options After a Car Accident Death

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