If you were injured in a car accident in New York, you may be entitled to cash compensation. However, it might be awhile before you see that money—but you probably need it right away. If you’re in this situation, you have few options. One of them is to secure a pre-settlement advance, otherwise known as a “lawsuit loan.”
A pre-settlement advance can help you stay afloat financially until you resolve your lawsuit or can go back to work. This money covers expenses from a car accident, such as medical bills, vehicle repairs or lost wages from missing work.
How can I get cash to help recover from a New York car accident?
In New York, car accidents happen every day. New York City alone recently reported 8,480 motor vehicle accidents--and that’s just from September of 2022. According to the data, 16,000 New Yorkers were affected by those accidents, and many of them will wait far too long to see a settlement that helps them recover.
If you were involved in a car accident in New York, but were not at fault, and weren’t a passenger, you may be entitled to compensation. But you will likely have to wait a year or more before you see any of that money--unless you get pre-settlement funding.
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” nickname is not correct, because this 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 fees required to apply.
With pre-settlement funding, you get your settlement money sooner, and never have to worry about feeling pressured to accept a settlement that’s less than you deserve. Pre-settlement advances in New York provide you with a little more leverage when facing big insurance companies that often have what looks to be an unlimited amount of funds. And, here at Bridgeway Legal Funding, we make it easy to secure one.
How do pre-settlement advances work?
We use a fast three-step process to help our clients obtain their pre-settlement advance:
- We have a brief conversation with you, the plaintiff.
- We look over your case to estimate its potential value.
- If approved, we offer you an advance of 10-20% of your case’s estimated value.
How long does it take to get approved for a pre-settlement advance?
Bridgeway Legal Funding works faster than many of our competitors to secure pre-settlement advances for our clients. If you’ve been in a car accident in New York, we can accommodate you quickly—with our business model, you can get cash within 24 to 48 hours of applying.
Call us 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 typically advance our clients up to 10 to 20% of their case’s value-- so what’s important is how much your case is actually worth.
To determine how much a case is worth, we assess:
- Liability: In other words, who was at fault? This is easy to determine in cases where someone was rear-ended, but instances like a side swipe are not as clear, and both drivers may share the fault.
- Damages: These are typically divided into two main parts. Injuries account for the first part of damages—medical treatment, expenses, the length of your medical treatment and estimated future medical expenses. The second part is the lost wages claim. We assess how much work you missed when you were healing your injuries, and get a number for how much money you lost in your paycheck because of it. Lost wages also include a lost capacity of earning. This means, if you injure yourself in a way that makes it hard for you to return to work, or you are so injured that you can’t make as much money, or even have to quit, you can be compensated for it.
- 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 insurance coverages required by New York. 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
Remember: New York is a no-fault insurance state
New York is a “no fault” insurance state, which 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 insured person’s personal injury protection coverage (PIP), 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 are deemed “serious.”
New York’s no-fault law considers the following to be serious injuries:
• Fracture, or any injury that keeps you from doing daily activities, or 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
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 get a pre-settlement advance?
- Hire an attorney that specializes in motor vehicle accidents.
- Keep thorough records of the car accident and your injury.
- Get a copy of the police report and collect names of any potential witnesses.
- 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.
Still have questions?
Be sure to read Bridgeway's GUIDE TO FUNDING 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.