The United States has the longest and largest road network in the world in terms of mileage, with about 6.6 million kilometers of total road length. But even though it doesn’t have the highest road density (the ratio of the length of the country’s total road network to the country’s land area), road traffic crashes are a leading cause of death in the United States in the 1-54 age group. The rate of car accidents has led victims to car accident settlement loans that come from the 5.25 million accidents that happen every year.
With a considerable number of Americans involved in auto accidents every year and a legal system that does not provide immediate compensation for victims, a car accident settlement loan is an immediate solution for the setbacks of a car accident.
- Even amidst the pandemic, the American motor vehicle fleet traveled about 213 billion vehicle-miles in May 2020.
- In 2018, 6.7 million passenger cars (55% of the overall total) were involved in U.S. traffic crashes.
- In 2018, the ratio of traffic-related fatalities per 100,000 licensed drivers was 16.07
- In 2018, 12 million vehicles were involved in crashes in the US.
- In the US, you have an 8% chance of being in a car accident each calendar year.
- 93% of car crashes are caused by human error like an improper lookout, excessive speed, and inattention.
- 62% of recipients of car accident settlement loans use the money to pay back rent and to avoid foreclosure of a property.
- 78% of car accident settlement loans are approved for funding.
- Only 12% of all car accident lawsuits are won by the defendant and the car accident settlement loan is not repaid.
Why Car Accident Victims Choose a Car Accident Settlement Loan
As shown in the statistics above, a large percentage of car accidents involve negligence. This entitles victims to compensation for economic and non-economic losses. However, the legal right to full compensation will not come in an instant.
It can take months or over a year to prove that you qualify for the compensation if your case is disputed and your case turns into a trial of personal injury. Now, while you wait for your case to be settled, and your injury prevents you from working, you would have to consider a car accident settlement loan so you can pay your bills and fulfill your obligations.
It is literally not a “loan” in itself but a cash advance while you wait for your claim. This is a reason why it is sometimes termed as a car accident settlement advance. Here are the most reasonable considerations why a car lawsuit funding is the best option for some:
- If you lose the case, you are not obligated to pay the lawsuit lender.
- It provides sufficient funding for covering medical bills, living expenses, and other financial obligations.
- It can provide financial ability to achieve a better settlement from the defendant or to take the case to trial if needed.
- It can be offered to individuals with a bad credit score. Most lawsuit lenders will not check on your credit history to approve your auto accident settlement loan.
- It can give you the peace of mind that you need from the stress of worrying about your financial obligations and budgeting for your everyday needs, especially if you are the breadwinner.
Should You Apply for a Car Accident Funding?
Car accident settlement loans or car accident funding is a pre-settlement loan that can guarantee you the money you need while you wait to get your settlement. Not all companies providing this type of loan have the same regulations and terms. Did you know that Delta Lawsuit Loans is one of the companies offering this type of loan, and once approved you can get cash in 24 hours.
Most lawsuit funding companies charge two to four percent interest compounded monthly. Interest rates can go as high as sixty percent a year. The reason for the very high interest rates on car lawsuit loans is because of the great risk that lenders have to take since no repayment is required if the borrower loses the case. However, if by far, you found a lending company that is not predatory, but is primarily focused on helping you with your financial needs at a most crucial time in your life, you may opt for a car accident settlement loan.