- James Miller
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There are many types of civil lawsuits being filed every day for accidents.
There are car accidents, slip, and fall accidents, medical malpractice, and many other types of accident lawsuits.
However, companies like Delta Lawsuit Loans like to focus on car accidents for good reason.
It is not solely for the purpose that car accidents are the most prevalent and give them the most volume for accident loans.
They are also the easiest to underwrite to determine who should get a car accident lawsuit loan and for how much they should be approved.
That is not to say that they do not want to fund other types of accident loans.
In fact, in most cases, financial assistance after a car accident typically makes up about sixty percent of a company’s portfolio of accident loans.
Slip and fall, medical malpractice, and other types of accident loans make up for the balance. That is because they are just not as easy and appealing to underwrite.
Car accident lawsuit loans are significantly easier. Here’s why.
Car accident liability
When looking at a potential lawsuit loan, the first and most important question is to determine, who is at fault?
When it comes to a car accident, that answer is usually remarkably simple. In most cases, it is not a judgment call by the underwriter.
It is clearly written by a third party. It is stated in the police report that was filed by the police officer.
The most important aspect of deciding a case for an accident loan is answered by not only a third party but also an authority.
Even without the police report, liability can be easily determined in certain instances.
For example, if someone was involved in a rear-ended collision. If they are rear ended, most of the time the other side is at fault. Or better yet if someone was a passenger in a car.
They obviously were not at fault and therefore the liability is set so that they can get their car accident lawsuit loan.
However, for example if someone has a slip and fall accident and is applying for a loan, it makes it a lot more difficult to determine liability.
In this case, when someone files an incident report and there were no witnesses or there was no prior notice, it becomes a “he said-she said” situation, and liability can become an issue for the loan approval.
Even if there are witnesses, it may be a close friend or family member whose intentions can be questioned by the defendant.
Also, very often, insurance companies will not formally accept liability in the early parts of the case. Why should they? They would rather let this thing sit and hope that you move on.
They almost always try to string out the timeline before they will send you something in writing stipulating that they are at fault.
However, when it comes to car accidents, there is an obvious clue if they plan on accepting the liability.
When you get into a car accident and need to repair it, if they pay for it, that means they have accepted the liability.
If they do not think it was their fault, why would they pay for the repairs to your car
In fact, if they think you were at fault, they would ask you to pay for the repairs to their client’s car.
However, when it comes to other lawsuit loans such as a slip and fall or medical malpractice, that opportunity does not present itself.
States mandate car accident insurance
Every single state mandates that for you to operate a car you are required to carry a state minimum.
Some states may be as low as $10,000 per person while others can be as high as $50,000. Obviously, people carry more than that.
There are instances where the Underwriter knows that there are even higher limits.
For example, if you were hit by a commercial vehicle. In this instance, they know that there is at least $100,000 in coverage and more likely one million.
When you are in a lawsuit, oftentimes that defendant does not disclose how much insurance they have until well into the process.
Therefore, when it comes to slip and fall accident loans or even medical malpractice, there is a possibility that the defendant did not carry insurance and therefore they might lose all the funding put out for the loan.
However, when it comes to a car accident, the funding company can look at the state minimums of where the accident happened and give a car accident loan based on the state minimums.
If more insurance is uncovered later, they can increase the loan amount.
View here for the list of different car accident laws per state.
The other crucial element reviewed for your car accident loan, are damages that have been caused.
They are a lot easier to determine when it comes to car accidents. If the car you were in was completely totaled, it is highly likely that you have been hurt badly as opposed to a small scrape on your car.
More car accidents than other types of lawsuits
That does not mean that they simply like it because of the volume of business.
I’m sure they love that, too.
The reason is that because there are more car accidents and therefore the volume of loans is higher, it reduces their overall risks in that segment of the business.
For example, if they only do three medical malpractice cases in a month and lose one of those cases, they will take a 33% loss in principle.
If they do one hundred car accident loans in a given month and lose one case, they only take a 1% loss within that segment and therefore will be very profitable.
Learn More About Car Accident Pre-Settlement Funds
All of this information regarding car accident loans is very helpful to you the consumer.
Given that you now understand that you are considered a highly desirable part of the lawsuit lending business, it affords you to be able to negotiate better deals
To know more about car accident funding, call us today. We also offer same-day accident loans for Uber/Lyft accidents and personal injuries.
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Over his career, James has successfully built and managed several of his own businesses, sold his company, managed hundreds of employees, operated across the United States and Europe, and completed financings for his own companies in excess of $400 million dollars.
James investment and operating experience includes co-founding one of the largest pre settlement companies, a special purpose fund that advanced money to litigants against pending legal claims. He had over $300 million across thousands of case investments, collections, and receivables, a staff of almost 50 employees, operating in 40 states. James built, assembled, and motivated a team of who became the leaders in their field of pre settlement funding. The company offered multiple solutions include attorney funding, plaintiff advances, pre settlement and post-settlement funding, and surgical and medical financing, which enable his clients to receive funds for their case, while the await their settlement.
After selling his business, James now operates a consulting firm which specializes in the lawsuit loan industry. He advises companies how to structure their financing, run their operations, deal with legal issues and collecting on their lawsuit loans. In addition to his consulting firm, James teaches business ethics classes and a local university.
James enjoys teaching, reading, writing and spending time with his wife and two boys.