Liability disputes can significantly delay the car accident lawsuit process. The at-fault driver’s insurance company may do everything in its power to deny liability and pin the blame on you. While you wait for disputes to resolve, your medical bills and other expenses continue to pile up, increasing the financial burden on you.
Car accident lawsuit funding can provide relief during lengthy liability disputes. Learn more below, then reach out to lawsuit funding companies in New York to understand your eligibility.
Why the Insurer or Defendant May Dispute Liability in Your Accident Case
Liability disputes are relatively common in car accident lawsuit cases. It is in the insurance company’s favor to avoid paying out the claim. If there are any holes in your evidence or if your case isn’t strong enough, the insurer may dispute the claimant’s liability in the accident.
They could cite any of the following to dispute liability in your accident case:
- Conflicting driver stories: Perhaps you and the other driver have different stories about the accident, and evidence does not clearly favor one version of events over the other.
- Lack of independent evidence: A lack of clear photos of the scene or other supporting documentation could lead the insurer to dispute liability.
- Shared fault under comparative negligence laws: The insurer may claim that you were equally responsible for the accident or that you had a higher liability percentage than their claimant to minimize your payout.
- Pre-existing conditions: Claims that your injuries were pre-existing and not a result of the accident can also lead to liability disputes.
- Policy exclusions or lapses: Perhaps the insurer has claimed that their policyholder’s insurance was inactive at the time of the crash or that the vehicle was being used in an unapproved manner.
Data from Weiss Ratings shows that as many as 1.3 million auto liability claims were closed as “flat-out denials” in 2025, accounting for 48.3% of all claims. This is a 44% increase since 2005.
How Long Do Liability Disputes in Car Accident Cases Take?
If the insurance company disputes liability, this can significantly extend the timeline of your claim or lawsuit. Your attorney will send additional evidence to the insurance company or their attorney to refute any claims made against you. The insurance company will review the evidence and may adjust its determination.
In some cases, you may need to request a new adjuster to review the claim. Your attorney may also appeal a wrongful claim denial or assert that the insurance company acted in bad faith. Liability disputes involve a significant amount of back and forth between your legal team and theirs, and this may add months or even years to your case.
Turning to Car Accident Lawsuit Funding as a Solution During Liability Disputes
Your attorney may feel confident that your car accident lawsuit will eventually end in a settlement or payout, but the timeline to achieve this can be lengthy. This is why many accident victims turn to car accident lawsuit funding.
This is a form of cash advance on your eventual lawsuit settlement. A lawsuit funding company will review your case and assess the likelihood of a payout. If the company believes your case is strong enough, it may offer you a percentage of your expected settlement as an advance.
At the end of your case, you would repay the cash advance, plus fees, out of your settlement. But if your car accident claim were to end without a settlement, you would not need to repay anything, as this form of advance is non-recourse.
The Process of Seeking Pre-Settlement Funding for Car Accident Cases
If you are waiting on a liability dispute to resolve, you may be in desperate need of financial support. The process of seeking pre-settlement lawsuit funding is often fairly quick.
While different funding companies follow different processes, you can generally expect these steps:
- You fill out an application with basic details about your case, including your contact information and your legal representative’s contact details.
- The funding company’s underwriters evaluate your case to understand its strength and the expected settlement amount. They will likely communicate with your lawyer to request documentation.
- If your case meets the company’s requirements, it will make a cash advance offer that is a percentage of your expected settlement. It will present you with an agreement regarding the repayment terms, interest rates, and associated fees.
- You receive the funds either directly into your bank account or by mail within 24 to 48 hours of approval.
Qualifying for a cash advance is often simpler than meeting the eligibility requirements for a personal loan. These funding companies generally do not base your eligibility on financial criteria such as credit scores, income, or job stability. Instead, they use the viability of your legal case as the basis for your funding. This means you can still qualify if you have a less-than-ideal financial history.
How Lawsuit Funding Helps During Injury Investigations
Car accident lawsuit funding offers support while waiting on liability decisions. Here are a few important ways pre-settlement funding can help you:
- Prevents you from accepting an inadequate settlement due to time constraints: One of the main reasons to consider financial help during accident claim delays is to avoid feeling pressured to accept an insufficient settlement. With pre-settlement funding, you will have more breathing room during delays and disputes. You won’t feel tempted to accept a settlement so that you can finally gain reimbursement for expenses.
- Helps you afford normal daily expenses: With pre-settlement funding, you can continue paying for normal expenses like your mortgage, utilities, groceries, and other bills that don’t stop just because you are recovering from an injury. This can provide peace of mind during an already stressful time.
- Allows you to avoid accruing interest on debts: Car accidents can quickly send you into financial hardship, and you may not have the funds to make credit card payments on time or begin paying off medical bills. You can consider using funding for these expenses to avoid accruing interest and owing more money down the line.
Apply for Pre-Settlement Funding Today
If you are experiencing financial hardship while waiting for liability disputes to resolve, car accident pre-settlement funding may be a solution to consider. Apex Legal Funding, LLC, makes the funding process simple.
Fill out our online form today to get started, or call us at 1-800-377-4934 for more information.
Frequently Asked Questions
Do you need an attorney to qualify for lawsuit funding?
Yes, many lawsuit funding companies require you to have an attorney to qualify for funding.
What happens if you lose your case after accepting pre-settlement funding?
Generally, if you lose your case after accepting pre-settlement funding, you do not need to repay the advance. The funding company assumes the risk of you losing your case and generally only lends to clients who have strong, predictable cases.
Do insurance companies prefer to settle out of court?
Insurance companies often prefer to settle out of court to avoid the expense of trials. Your attorney can help you understand whether settling out of court may be in your favor. If you are feeling pressured to settle, applying for car accident lawsuit funding could give you more time to continue negotiating while relieving your financial hardship.