18-Feb

The Relationship Between Lawsuit Loans And Insurance Companies

As a Pre-Settlement Funding company, we try to be as transparent as possible with our clients as to how the Lawsuit Loan business works. That said, in order to really know how much help deltasettlementfunding.com can provide Plaintiffs, they must understand the relationship of Lawsuit Loans and Insurance Companies. The way Legal Funding Companies and Insurance Companies work with each other is sometimes beneficial, and sometimes detrimental to a lawsuit.
There are times when an Insurance Company can be your best friend when applying for Lawsuit Loans at a pre-settlement funding institution; and there are also times when Insurance Companies will seem like an immovable force getting in between you and a successful judgement. If a plaintiff is well aware of the situations in which an Insurance Company is there to help, and the situations in which an Insurance Company is trying to impede their progress, it can make up all the difference between a victory and a defeat in the court of law. With that in mind, the ability to get a lawsuit loan can also help a plaintiff find victory in with their lawsuit as well.

Will A Lawsuit Loan Affect My Insurance?

The short answer is “No” – getting a lawsuit loan from a pre-settlement funding company will not affect your insurance in any way. While the cause for needing a lawsuit loan may alter your annual insurance payments (if you were in a vehicular accident for instance), the actually loan itself will have no affect.
Lawsuit Loans are a litigation financing tool that are entirely self contained. Settlement Funding Companies do not deal directly with your insurance company or your bank (except to deposit your loan). They are a completely self-regulated financial investment tool that is more or less completely self contained. The only parties who are required to be involved when applying for a lawsuit loan are The Plaintiff, The Solicitor, and The Lawsuit Loan Company. None of the plaintiffs insurance policies will be affected by their decision to apply for a lawsuit loan..

Is Insurance Needed For A Lawsuit Loan

The answer to the question of whether or not insurance is needed for a lawsuit loan would depend entirely on the party involved (the plaintiff or the defendant) and the type of lawsuit the plaintiff is engaged in.

Insurance Coverage For The Defendant

Due to the nature of the lawsuit loan industry, whether or not the defendant is insured might (but very rarely) affect your application for a Lawsuit Loan. The truth of the matter is that lawsuit loans are actually not loans, but financial investments into the probability that a plaintiff will be successful in their lawsuit. This fact has advantages and disadvantages for the plaintiff: the advantage being that if the plaintiff loses their case, they do not have to pay back the lawsuit loan; the disadvantage being that potential payout is a consideration for a pre-settlement loan company. If the defendant is not insured, that may severely lessen the potential monetary payout to plaintiff. Lawsuit Loan companies always check with their clients solicitor to ensure the defendants insurance is at it’s maximum in relation to the case.

Insurance Coverage For The Plaintiff

Although in most cases Insurance Coverage is not needed for the plaintiff in order to proceed with applying for a lawsuit loan, this again is entirely dependent on the nature of the lawsuit. Once again, due to the fact lawsuit loans function more as investment assets, if a specific type of insurance is required in order for a successful judgement to be reached, the plaintiff may need the appropriately related insurance policy in order for them to get approved for a lawsuit loan.
As an example, if the plaintiff was involved in a rear-end collision (as the driver, not the passenger) and wishes to engage in a lawsuit with the driver of the vehicle that rear-ended them, they would need the applicable automobile insurance in order to apply. If the plaintiff tried to pursue charges and it was discovered they did not have the proper insurance to drive their vehicle, the chances of a judgement being found in their favor would drop dramatically seeing as they should not have been driving in the first place. With advise that all plaintiffs keep this fact in mind when applying for lawsuit loans online.

I Didn’t Qualify For A Lawsuit Loan, Was It Because Of My Insurance?

Because settlement funding carries a risk for even the best lawsuit loan companies, every variable is weighed when deciding to release a lawsuit loan. The total loan value that the plaintiff receives is dependent on the estimated monetary amount they will be awarded should they see a successful judgement. Since the factors that play into a this estimated monetary award include the severity of the plaintiffs injury, a clear direction of liability, and the available insurance coverage of the defendant, in almost 100% of all cases your specific insurance coverage should not play a factor in if you’re approved for a lawsuit loan.
However, if you find that your approval wasn’t approved, we invite you to apply again as your lawsuit progresses. With all litigious matters, as the lawsuit proceeds and the above mentioned factors become more clearly visible (injuries, liability, insurance), a plaintiffs case might sudden become eligible for a lawsuit loan – regardless of it wasn’t earlier.

How Can Insurance Companies Get In The Way Of My Legal Victory

In almost all cases, a plaintiff in a personal injury lawsuit is not actually going up against a defendant in court – they’re going up against the defendants insurance company. Insurance companies have an almost endless amount of resources behind them and they will use them all in an attempt to squash your case and not pay you the award you deserve. There main tactic in reducing how much money they will be required to pay a plaintiff is to drive them to take an under-valued settlement.

Insurance Companies Will Emotionally And Financially Exhaust Plaintiffs

In there efforts to move a plaintiff toward a settlement, the defendants insurance company will try to drag out the proceedings as long as possible. They understand that legal proceedings are difficult and tiresome times for plaintiffs, and by stretching them out to their fullest extent they hope to both emotionally and financially exhaust the plaintiff. Their ideal outcome is that the plaintiff is so inundated with medical, legal, and everyday expenses that they will take the first settlement the insurance company offers them.

How Can A Lawsuit Loan Help A Plaintiff Deal With Insurance Company Opposition?

By getting lawsuit loans, Plaintiffs are able to actually fight their lawsuits. We understand that the time it takes for a lawsuit to find judgment is not something that ever plaintiff can afford – which is why lawsuit loans work so well! With the extra money that plaintiffs will have in their bank accounts they’ll be able to stay on top of their mounting expenseswhether those expenses are medical bills, legal bills, family care, tuition expenses, or all of the above! By not feeling the severe strain routinely caused by those financial pressures, plaintiffs can give their lawyers the time required in order to build a successful lawsuit. Lawsuit Loans allow plaintiffs to get the full financial settlement they deserve.

Don’t Get Taken Advantage Of By Insurance Companies With Lawsuit Loans

Since it is a common and blatant tactic for Insurance Companies to try to financially starve a plaintiff into accepting a less than acceptable settlement, it is imperative that plaintiffs have the finances they need in order to keep fighting. By receiving lawsuit loans, they will have the financial stability they need. These no-risk loans have saved countless plaintiffs from taking a pre-mature settlement in the past – which just goes to show how valuable they can be.
If you are currently involved in lawsuit and find yourself been financially and emotionally exhausted due to the deliberate behavior of the defendants insurance company, you can find financial respite when you Apply For A Lawsuit Loan today at Delta Settlement Funding.