Can You Get a Cash Advance on an Uninsured Motorist Claim?

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

A claim against your own insurer

A UM or UIM claim is a claim under your own policy, but you still have to prove what the other driver owed you. The Texas Supreme Court put it this way: the UIM contract “is unique because, according to its terms, benefits are conditioned upon the insured’s legal entitlement to receive damages from a third party” (Brainard v. Trinity Universal). Your insurer can dispute fault and the value of your injuries just as the other driver’s insurer would.

That changes what a funder looks at. In the study of one large funder by Avraham and Sebok, the defendant’s insurance carrier and the scope of coverage were among the details collected before a decision (104 Cornell L. Rev. 1133). In a UM claim, those answers come from your own declarations page. The amount at stake is capped by the limit you bought; what stays open is fault, damages and time. How funders size an offer against a limit is covered in how much you can get.

California: arbitration and the two-year rule

California’s statute requires UM policies to resolve disagreements over whether you are entitled to recover, or how much, “by arbitration,” before a single neutral arbitrator (Ins. Code 11580.2(f)). The deadlines are strict:

• Within two years of the accident, one of three things must happen: a bodily injury suit is filed against the uninsured motorist, you and the insurer agree on the amount, or you formally start arbitration by written notice to the insurer sent by certified mail (11580.2(i)(1)).
• Once started, an arbitration must generally be concluded within five years, or, if you also have a workers’ comp claim from the same accident, within three years after that claim ends if that is later (11580.2(i)(2)).
• Estoppel, waiver, impossibility, impracticality and futility can excuse missing these timeframes, as a court decides (11580.2(i)(3)).
• Unless it knows you have a lawyer, your insurer must warn you in writing at least 30 days before the deadline runs out; if it does not, the deadline is tolled until 30 days after it gives that notice (11580.2(k)).

Hit-and-run claims carry their own conditions. The injury must come from physical contact between the unknown vehicle and you or the car you were in, the accident must be reported within 24 hours, and a statement under oath must be filed with your insurer within 30 days (11580.2(b)). Our FAQs on being hit by an uninsured driver and hit-and-run crashes in California cover the first steps.

Texas: a judgment comes first

Texas policies must include UM/UIM coverage unless a named insured rejects it in writing (Ins. Code 1952.101). For an unknown driver, the statute requires actual physical contact between that driver’s vehicle and you or your property (section 1952.104).

The bigger difference is timing. In Brainard the Texas Supreme Court held that a UIM insurer is “under no contractual duty to pay benefits until the insured obtains a judgment establishing the liability and underinsured status of the other motorist.” The same opinion held that UIM coverage includes the prejudgment interest the other driver would have owed, and that attorney’s fees under Chapter 38 were not recoverable because no claim had been presented until that judgment (Brainard). In 2021 the court allowed an insured to establish those facts through a declaratory judgment suit against the insurer, where fees may be available in the trial court’s discretion (Allstate v. Irwin).

So a disputed Texas UIM claim may need its own lawsuit, and under most funding contracts the charges keep growing while it runs.

Washington: the statute’s conditions

Washington requires UIM coverage on policies for vehicles registered or principally garaged in the state, unless a named insured or spouse rejects it in writing (RCW 48.22.030). The statute’s definition of an underinsured vehicle includes one with no liability coverage at all. For a phantom vehicle, the facts must be corroborated “by competent evidence other than the testimony of the insured,” and the accident must be reported to law enforcement within 72 hours (RCW 48.22.030(8)). The statute itself does not set an arbitration rule or a consent-to-settle rule, so your policy’s terms control those questions.

Settling with the at-fault driver first

When the other driver has some insurance, the order of events matters. In California, UM coverage does not apply if you settle with, or take to judgment, anyone who may be liable “without the written consent of the insurer” (11580.2(c)(3)). UIM coverage applies only after the at-fault driver’s liability limits are exhausted and proof of payment is given to your insurer (11580.2(p)(3)), and the UIM insurer receives credit for what that driver or the driver’s insurer paid you (11580.2(p)(5)). In Texas, an insurer that pays is entitled to the proceeds of any later settlement or judgment from your right of recovery, to the extent of its payment (Ins. Code 1952.108).

For an advance, the question is what the contract reaches. If it reaches “all proceeds” of the accident, it may take in both the liability settlement and the later UM or UIM payment. Check which claims it names. If the liability carrier has already paid and you are waiting only on your own insurer, compare post-settlement funding.

What to ask before you sign

• What are your UM and UIM limits, and do you have MedPay that could pay some bills now?
• In California, has suit been filed, an agreement reached, or arbitration started within two years of the accident?
• In Texas, will the UIM claim need a suit against your insurer, and how long does your lawyer expect it to take?
• Has your insurer consented in writing to any settlement with the at-fault driver?
• Does the contract reach the liability settlement, the UM/UIM claim, or both?
• What will I owe at 12, 24 and 36 months? The settlement math on how much of a $50,000 settlement you keep shows what comes out first.

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.