If you were in a car accident in New York and were injured, you may be entitled to a cash settlement. However, it might be awhile before you see that money—which can be problematic if you need it right away. In instances like these you have few options—one of them is to secure a pre-settlement advance, which is also known as a “lawsuit loan.” Pre-settlement advances can come in handy to cover expenses that often come from car accidents such as medical bills, vehicle repairs or lost wages from missing work. A pre-settlement advance can help keep you afloat financially until you can resolve your lawsuit or can return to work.

How does Pre-Settlement Funding work? (video)


What is pre-settlement funding?

Pre-settlement funding is simply a cash advance against your pending motor vehicle accident claim or lawsuit. The common “lawsuit loan” reference is not correct because the funding is not actually a loan—it’s a non-resource advance. That means if you don’t win your case, you do not have to pay back the advance. Also, unlike a loan, there are no credit checks or up-front costs.

More than 11 million vehicles are registered in the Empire State, which resulted in more than 433,000 car accidents in New York in 2018.


If you were involved in a car accident in New York, but were not at fault, or a passenger, you could be legally entitled to compensation. Again, the downside is you will likely have to wait a year or more before you see any of that money.


With pre-settlement funding however, you never have to worry about being in a position where you feel pressured to accept a settlement less than you deserve. Pre-settlement advances in New York will provide you with a little more leverage when facing big insurance companies that often have what looks to be an unlimited amount of funds.


How do pre-settlement advances work?

Bridgeway Legal Funding, uses a consistent and efficient three-step process to help our clients obtain their pre-settlement advance:

  1. We’ll have a brief conversation with you. (the plaintiff)
  2. We’ll then look over your case in order to estimate its potential value
  3. If the numbers work, Bridgeway Legal Funding will offer you an advance of 10-20% of what we think your case’s value is.

Be sure to watch our “What is pre-settlement funding and how does it work?” video to get a better understanding of what pre-settlement funding is and how it works.


You can also check out the “How pre-settlement funding works section” on the Bridgeway Legal Funding website to learn more about this process.


How long does the pre-settlement advance process take?

Bridgeway Legal Funding works faster than many of our competitors to secure pre-settlement advances for our clients. If you’re in a car accident in New York, we can accommodate you quickly—our business model is set up to get our clients access to their cash within 24 to 48 hours.


Call Bridgeway Legal Funding at (800) 531-4066 or apply to our website to get your pre-settlement process started right away.


How much can I borrow from my car accident lawsuit?

We’re asked this question a lot. Our clients are usually eligible to receive up to 10 to 20% of their case’s value.


A better question might be: How does Bridgeway Legal Funding determine a case’s value?


The answer is, when we review cases, we focus on three main factors:

  1. Liability—in other words, who was at fault? This easy to determine when the accident involves a client’s vehicle was rear-ended. Instances like a side swipe is not as clear and both drivers may share the fault.
  2. Damages—these are typically divided into two main parts. Injuries account for the first part of damages—medical treatment required, expenses, length of treatment and estimated future medical expenses. The second part is the lost wages claim. Bridgeway Legal Funding comes to this figure by multiplying how much work is missed by how your salary. Other was lost wages factors include if you can perform your duties as you could before the car accident or if the accident forced you have to leave your position.
  3. Insurance—Usually, you can only recover up to what insurance is available in the accident. In New York, drivers have to carry at least the following required car insurance coverage and limits:

Bodily Injury Coverage: $25,000 per person and $50,000 per accident

Property Damage Liability Coverage: $10,000 per accident

Uninsured/Under-insured Bodily Injury Coverage: $25,000 per person/$50,000 per accident

Personal injury protection (AKA No-Fault insurance): $50,000


Remember these are the minimum coverage New York requires you to have. However, you if you feel the minimum isn’t enough coverage for you, you can buy more—the most you can purchase may vary by car insurance company. However, common maximum limits are:

• $250,000 for injuries per person

• $500,000 for injuries total, per accident

• $100,000 for property damage


New York—a no-fault insurance state

It’s also important to note that New York is a “no fault” insurance state. This means insurance companies generally reimburse policyholders for damages after a car accident in New York, regardless of who was responsible for causing the collision. Reimbursements include medical costs and other losses that could be a result of the accident. These expenses are paid through the insureds’ Personal Injury Protection coverage, which all New York drivers must carry per the state’s no-fault law.


The trade off for New York’s no-fault insurance coverage is a limited scope in which drivers can sue. After a car accident in New York, a driver can only sue for economic losses and for injuries that can be deemed, “serious”. New York’s No-Fault Law considers the following to be serious injuries:

• Fracture, or any injury that would keep you from doing your daily activities and a doctor says would take more than 90 days of the 100 days from the date of the accident to recover.

• Significant Disfigurement

• Permanent Disability

• Loss of fetus

• Death


To learn more about how much you can borrow for your New York car accident cash advance, check out our page “How much funding can I get against my car accident lawsuit?” 


What else can I do to obtain a pre-settlement advance?

There are few steps you can take to get pre-settlement funding when you’re in a car accident in New York:

  1. Hire an attorney that specializes in motor vehicle accidents
  2. Keep thorough records of the car accident and your injury
  3. Get a copy of the police report and collect names of any potential witnesses
  4. Make sure your law firm files a lawsuit within the legally allowed time. The statute of limitations in New York is three years within the date of the accident.

Visit Bridgeway Legal Funding’s website for more information regarding pre-settlement funding for car accidents in New York.