Motor Vehicle Accidents – All About Lawsuit Funding

Motor Vehicle Accidents – All About Lawsuit Funding

Have you ever been in an auto accident or known someone who was? Did the person in the accident receive a cash payment prior to any settlement being made? This is the job of lawsuit funding companies. These companies have many rules that govern their actions, but there are several things to keep in mind when looking at automobile accidents, pre-settlement funding by these companies, and the preferences they have in funding cases.

Most cases that are going to be funded by these companies consist of injuries that were sustained in an automobile accident. There are several reasons this is the case:

1. First, these cases often are very clear as to who is at fault for certain actions taken. The driver of a car, for example, has certain rules they must follow, so when an injury occurs it is often easier to tell who was at fault. Because car accidents have police on hand and reports filed, it is fairly easy to tell who was the guilty party.

2. Determining the damage in the case of car accidents is often very simple. States have laws that basically list how much a person can claim for these types of accidents. They can add to this other losses such as wages and medical bills, but even these are easy to figure out. Using medical tests proves the injury is actual and not fabricated, and the wage statement of a person shows how much they lost due to an accident. These damage assessments make car accident settlements the main type of injury settlement as you can see.

3. The guilty party is typically shown to be able to afford the damages. Because almost everyone that drives has to have car insurance, they most likely have personal injury covered. In car insurance, personal injury is known as bodily injury. This is ultimately important because if the guilty party has insurance then they will be able to cover the damages, and this is important for these companies. It has been said that if the guilty party does not have insurance then there is no point in forming a case against them as they will not likely have the means to pay any judgment against them.

If you are driving a car and have insurance then you can know you have this type of coverage. This matters greatly for loan companies because they know that loaning you money as an injured party will be repaid because there was car insurance involved. Add to this the likelihood of winning you care and now you get a clearer picture of when loans are made and when they are denied.

A clear example can be made to show how this works. If an individual was involved in a collision and the other driver was injured, you would look at the guilty party’s insurance to determine the amount of coverage. If they are carrying a policy that covers for $20,000 then that is going to most likely be the amount you can actually collect on in a case. This does not matter if the person deserves more; it is the maximum coverage and therefore the most that will probably be collected.