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 regarding how the Lawsuit Loan business works. That said, in order to really know how much help RapidLawsuitFunding.com can provide to Plaintiffs, they must understand the relationship of Lawsuit Loans and Insurance Companies. The way Legal Funding Companies and Insurance Companies work together can be beneficial in some but detrimental in other cases.
There are times when an insurance company can be your best friend when applying for a lawsuit loan 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 judgment. It is important to recognize the situations in which an insurance company may help or hinder your lawsuit. A lawsuit loan can also help you increase the chances of winning a lawsuit.

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 actual loan itself will have no effect.
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. 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 is that lawsuit loans are actually not loans, but financial investments in the probability that a plaintiff will be successful in their lawsuit. This has advantages and disadvantages for the plaintiff. The advantage is that if the plaintiff loses their case, they do not have to pay back the lawsuit loan. However, the potential payout is a consideration for a pre-settlement loan company and that may be considered a disadvantage. If the defendant is not insured, this may affect the possibility of the plaintiff receiving financial compensation. Lawsuit Loan companies always check with their client’s solicitor to ensure the defendant’s insurance is at its 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 apply for a lawsuit loan, this depends on the nature of the lawsuit. Once again, due to the fact that lawsuit loans function more as investment assets, if a specific type of insurance is required for a settlement to be reached, the plaintiff may need the appropriately related insurance policy 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 judgment being found in their favor would drop dramatically given that they should not have been driving in the first place. All plaintiffs should 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 depends on the estimated amount they would potentially be awarded in the settlement. Factors that affect this potential amount include the severity of the plaintiff’s injury, a clear liability, and the available insurance coverage of the defendant. In most cases your specific insurance coverage should not play a factor in whether you’re approved for a lawsuit loan.
However, if you are not approved for a loan, we invite you to apply again as your lawsuit progresses. As the lawsuit proceeds and the above-mentioned factors become more clearly visible (injuries, liability, insurance), a plaintiff’s case might suddenly become eligible for a lawsuit loan – even 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 defendant’s insurance company. Insurance companies have an almost endless amount of resources behind them and they will use them in an attempt to hinder your case and avoid paying you anything. Their main tactic in reducing the amount of settlement money is to convince the plaintiffs to take an under-valued settlement.

Insurance Companies Will Emotionally And Financially Exhaust Plaintiffs

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

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

By getting a lawsuit loan, a plaintiff is able to continue fighting to win their lawsuit. We understand that every plaintiff can afford to wait for a lawsuit to be resolved. This can take quite some time. That is why lawsuit loans work so well! With the extra money the plaintiffs have in their bank accounts they’ll be able to stay on top of their mounting expenses – as they wait for their case to settle.They can use the money to cover their medical bills, legal bills, family care expenses, tuition expenses, or all of the above! By not feeling the strain of financial pressures, plaintiffs can give their lawyers the time required to build a successful case. Lawsuit Loans allow plaintiffs to get the full financial settlement they deserve.

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

As it is common and blatant for Insurance Companies to try to financially starve a plaintiff to force them to accept a much smaller settlement, it is imperative that plaintiffs have the finances they need in order to keep fighting. By receiving a lawsuit loan, they have the financial stability required to see things through. 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 a lawsuit and find yourself financially and emotionally exhausted by all of it, you can find financial respite when you Apply For A Lawsuit Loan today at Rapid Lawsuit Funding.