Can you get a cash advance on a car accident settlement?

By Michael Shemtoub, trial attorney, Beverly Law. Updated November 2026.

How long a car accident claim takes

Every state sets a deadline to sue. It is two years for most injury claims in California (CCP 335.1) and Texas (CPRC 16.003), and three years in Washington (RCW 4.16.080). Many crash claims settle with the insurer before a lawsuit is ever filed. Others stretch out because fault is disputed, treatment continues or surgery is recommended. Our FAQ on how long a car accident settlement takes covers the usual stages.

Timing matters more for an advance than for the case itself, because most funding contracts charge by the month. A claim that pays the full policy limit within a few months costs far less to fund than the same claim after two years of litigation. If an insurer has already agreed to pay and you are waiting for the check, read about post-settlement funding instead.

The other driver’s policy limit sets the ceiling

Funders study the insurance before they look at anything else. The study of one large funder by Avraham and Sebok lists the defendant’s insurance carrier and the scope of its coverage among the items gathered before a decision (104 Cornell L. Rev. 1133). The reason is simple. A driver with a small policy and no other assets may never pay more than the limit, however serious the injury.

State minimums show how low that limit can be. California requires $30,000 per person and $60,000 per crash for bodily injury on policies renewed since January 1, 2025 (California Department of Insurance). Texas requires $30,000 and $60,000 (Transp. Code 601.072), and Washington $25,000 and $50,000 (RCW 46.29.090). Other states set their own floors, and any driver may carry more. Our FAQ on what a policy limit is explains how lawyers find the number. Once a suit is filed in California, a party may obtain discovery of the insurance agreement, including “the nature and limits of the coverage” (CCP 2017.210).

Example only

Suppose the at-fault driver carries $30,000 per person and the insurer pays all of it. Hypothetical attorney fees and costs of $11,000 and hypothetical liens of $9,000 leave $10,000 before any funder is paid. An advance whose payoff grew to $6,000 would leave $4,000. These are round, made-up numbers. Your fee agreement, your liens and the funding contract decide the real figures. The settlement-math FAQs for $25,000, $50,000 and $100,000 show the same subtractions at other sizes, and how much you can get explains how funders size offers.

Your own coverage: MedPay, PIP and UM/UIM

Your own policy can do two things for you here. It can pay bills now, which may shrink the amount you need to borrow against the case, and it can add a second source of recovery.

• MedPay. The California Department of Insurance describes medical payments coverage as paying accident medical costs up to the policy limit “regardless of fault” (CDI auto terms). See MedPay in California.
• PIP. Texas insurers must include personal injury protection unless a named insured rejects it in writing (Ins. Code 1952.152), and the required amount need not exceed $2,500 per person (section 1952.153). In Washington, PIP is optional coverage the insurer must offer (RCW 48.22.085), with at least $10,000 in medical and hospital benefits when it is bought (RCW 48.22.095).
• UM/UIM. California policies include uninsured motorist coverage unless it is deleted by written agreement. Underinsured coverage applies only after the at-fault driver’s limits are exhausted, and it pays no more than your UIM limit less what you were already paid (Ins. Code 11580.2). Texas requires UM/UIM unless rejected in writing (Ins. Code 1952.101), and so does Washington for underinsured coverage (RCW 48.22.030).

A UIM claim can raise what a case is worth to a funder, but it is a second claim against a second insurer, and it adds time. Our FAQ on making a UIM claim walks through the steps.

Liens that come out of a crash settlement

Crash settlements often carry claims from a health plan, a hospital, Medicare or Medicaid, or a doctor who treated you on a lien. Those usually come out before the funder’s payoff and your share. If you need the money for medical bills, ask first whether a provider will wait for the case to end. Our page on funding and medical liens explains who is usually paid first, and medical liens after a car accident covers provider liens.

What to ask before you sign

• What are the at-fault driver’s limits, if my lawyer knows them, and do I have UM or UIM coverage?
• After fees, costs and liens, what would be left if the case paid exactly the policy limit?
• Can MedPay or PIP pay some bills so I need a smaller advance?
• Has the insurer offered the limit or a settlement already?
• What will I owe at 6, 12 and 24 months, and does the contract also reach any UIM recovery?

Common questions

Related pages

Cash advance on a lawsuit · Laws by state · Injury law FAQs

Important: This page is general information, not legal or medical advice, and reading it does not create an attorney-client relationship. Every case is different; talk to a lawyer about yours. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou. Last reviewed: November 7, 2026.