Personal Injury Financing

Personal injury financing enables you to pay for expenses incurred after an injury, including medical expenses and living expenses. Credit cards, personal loans, health insurance and pre-settlement funding are all forms of personal injury financing but come with certain tradeoffs.

  • Written By
    Terry Turner

    Terry Turner

    Senior Financial Writer and Financial Wellness Facilitator

    Terry Turner is a senior financial writer for He holds a financial wellness facilitator certificate from the Foundation for Financial Wellness and the National Wellness Institute, and he is an active member of the Association for Financial Counseling & Planning Education (AFCPE®).

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    Savannah Pittle
    Savannah Pittle, senior financial editor for

    Savannah Pittle

    Senior Financial Editor

    Savannah Pittle is an accomplished writer, editor and content marketer. She joined as a financial editor in 2021 and uses her passion for educating readers on complex topics to guide visitors toward the path of financial literacy.

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    Thomas J. Brock, CFA®, CPA
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    Thomas J. Brock, CFA®, CPA

    Investment, Corporate Finance and Accounting Expert

    Thomas Brock, CFA®, CPA, is a financial professional with over 20 years of experience in investments, corporate finance and accounting. He currently oversees the investment operation for a $4 billion super-regional insurance carrier.

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  • Updated: August 25, 2023
  • 6 min read time
  • This page features 9 Cited Research Articles
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Key Takeaways

  • Personal injury financing covers expenses you face after you become injured, including medical bills, prescriptions and groceries.
  • You can get personal injury financing from personal loans, credit cards, health insurance and pre-settlement funding.
  • Pre-settlement funding allows you to borrow money based on the expected payout from your personal injury lawsuit.
  • Interest rates and loan amounts can vary significantly among lenders.

What Is Personal Injury Financing?

Personal injury financing is the process of obtaining money to cover your needs after you become injured. It helps people who were injured because of someone else’s actions cover their expenses while they wait for the courts to sort out their claim.

Pre-Settlement Funding Coverage Examples

  • Medical expenses, including supplies and prescription medications
  • Services like massage therapy, physiotherapy or psychotherapy
  • Daily expenses like groceries
  • Monthly expenses like rent, utilities and cable TV
  • Transportation expenses like Uber, bus passes, tolls, etc.
  • Adaptive equipment like a wheelchair or a stairlift

Personal injury financing plays a key role in the recovery process after an accident. It ensures that everyone can get the treatment and support they need regardless of how much money they have in the bank.

Types of Personal Injury Financing

There are various types of personal injury financing available to individuals who have been injured because of someone else’s negligence or fault.

It is important to note that each type of personal injury financing has its own terms, fees and requirements, so it is essential to review all options carefully and speak with a qualified professional before deciding on which type of financing to pursue.

Below are some of the most common types of personal injury financing.

Pre-Settlement Funding

Pre-settlement funding is a type of loan you can take out while you’re waiting for a lawsuit to be settled. You can receive a certain percentage of the settlement you expect to receive as a cash advance. Usually, you’re limited to 10% of your expected settlement or less.

Pre-settlement financing allows you to cover today’s expenses with the compensation you’ll receive later. Because it draws from resources you expect to receive because of your injury, it’s a great way to get the money you need without disrupting your usual monthly cash flow.

Personal Loan

Personal loans are general-purpose loans issued by a bank or other creditor. You can borrow anywhere from a few hundred dollars to several thousand dollars.

Personal loans carry no restrictions. You can use them to pay for any expenses. However, they can be difficult to secure without good credit. They also may come with high interest rates and fees.

Personal Injury Settlement

A personal injury settlement is early financial compensation for an injury you incurred because of someone else’s actions or negligence. These settlements hold the responsible party accountable for the financial repercussions of their choices.

You can receive a settlement that compensates you for medical expenses, lost wages, emotional distress and any other consequence of your injury. However, successful outcomes of lawsuits are never guaranteed. It’s possible you won’t receive the ultimate payout you expect. And sometimes it will take months or years to settle your legal claim and determine what you’re owed as compensation.

Health Insurance

Some health insurance covers your medical expenses while you wait for your settlement to be approved. Health insurance coverage varies by plan. Your insurance provider also may cap your coverage at a certain amount — or only pay for any expenses after you’ve paid your full deductible. Check your health insurance policy details to see what your plan covers and whether you’ll have any remaining expenses to cover.

Credit Cards

You can use credit cards to pay for almost anything you need after an injury. From groceries to adaptive equipment, you can buy whatever your credit limit allows you to put on the card.

Since most people already have at least one credit card, this is one of the most accessible types of personal injury financing. If you don’t have a credit card yet, though, you might have a hard time getting your hands on one. Even if you have one, it’s not a good idea to carry a large balance. Most cards’ interest rates are very high and will quickly inflate your debt.

How Can Pre-Settlement Funding Help You Finance Your Personal Injury?

Pre-settlement funding can take some of the financial pressure off you while you’re recovering from your injury.

While personal injury financing can provide financial relief to plaintiffs pursuing personal injury claims, there are many potential drawbacks associated with this financing channel. At the top of the list are exorbitant costs, conflicts of interest and inadequate regulation.

The Pros & Cons of pre-settlement funding:


  • There are no up-front fees. You’ll only be asked to pay what you owe when you receive payment from your lawsuit.
  • If you apply for non-recourse funding, you won’t owe your lender any money if you lose your lawsuit.
  • There’s no credit check. You can get pre-settlement funding with bad credit or no credit.
  • There’s no employment verification. You can get funding even if you weren’t working when you were injured.
  • The application process is quick and easy. Many lenders will send you money within a few days of receiving your application.


  • If your lender thinks you may lose your legal claim, you may not be approved.
  • If you expect to receive a structured settlement as your financial compensation, you may not be eligible for pre-settlement funding.
  • Your funding may come with high fees or interest rates.

Research your options carefully before accepting any pre-settlement funding. It’s worth your while to shop around for the best deal.

How To Get a Pre-Settlement Loan for a Personal Injury

You can apply for most personal injury pre-settlement loans online in just a few minutes. Once you’ve chosen your lender, check their application requirements to see what you’ll need to do.

5 Steps To Get a Pre-Settlement Loan

  1. Figure out how much money you’ll need to cover your monthly expenses plus the added costs for personal injury expenses. This will help you calculate how much to borrow.
  2. Research pre-settlement funding companies to find a reputable provider that meets your needs. Compare their loan terms, interest rates, fees and other important details. Review each company’s website or use an online comparison tool.
  3. Gather necessary information and documentation, including medical records and accident reports. You’ll also need your lawyer’s contact information so your loan company can discuss the details of your case with them.
  4. Submit an application. Your lender will give you application forms to fill out with all the information they need to make a decision about your loan.
  5. Receive your funding. You must be approved by your chosen lender. You’ll hear from the lender in a few days. If approved, you’ll get your money soon after. If not, you can apply to another lender.

Some people take out multiple pre-settlement loans to get the total amount they need. If you plan to do this, you’ll need to inform all the lenders you borrow from.

Please seek the advice of a qualified professional before making financial decisions.
Last Modified: August 25, 2023