Being involved in a car accident is unfortunate. Not only is the mental anguish added, but the legal formalities that it brings along are also complicated. A layperson who is not aware of the circumstantial proceedings can get entangled in the legal system and lose a lot of time, money, and peace of mind at the hands of the law.

Before speaking to a lawyer or appearing in court, there are basic legal questions to be aware of. This help put a strong case before the prosecutor. This guide explains some of the commonly asked questions when dealing with car accident cases.

Q. Are Car Accident Loans Regulated?

AYes, but be careful. For car accident loans to be regulated, they must be genuine loans given to you by a licensed lender. In the United States, only licensed lenders can provide consumer credit loans, and each state is unique in the way it handles them.

Q. Who is responsible for deciding where to get your car repaired?

A. The owner is responsible for deciding where to get his car repaired. The billing and payment are taken care of by the insurance company. The amount to be indemnified is solely the autonomy of the company and may not be equal to the amount estimated by the repair shop.

Q. Will I be charged for storage by the repair store?

A. The insurance company of the person whose vehicle caused the accident is responsible for paying towing and storage compensation. Fares for the above may vary from region to region. If a vehicle is declared as a total loss, it will be taken to a salvage or wreck yard. The insurance company also pays for it. However, if you do not allow your vehicle to be carried, you will be liable for any storage or towing payments.

Q. Who decides what condition your car is in?

A. The insurance company responsible for the payment and transaction decides whether your vehicle is worth repairing or not. If the fee for repair and exchange parts exceeds the market value of the vehicle, the company declares it as a total loss. In such a case, you are entitled to pay the current market value of your car. The current market value is determined by the fair market value of a similar automobile in your respective area.

Q. Who is responsible for paying off the bank loan if your vehicle is financed?

A. Bank loan should be paid by you only. Even if the fair market value of your new vehicle is less than the outstanding loan, you are responsible for paying the full amount of any debt on your vehicle.

Q. What to do when your vehicle is in repair?

A. If your vehicle is undergoing repairs then you can opt for a rental vehicle. However, the payment will be borne by you. If the insurance company pays for your rental vehicle, you need to take several factors into account. If you are responsible for the accident, look at the team and terms of insurance and whether it covers rental vehicles. Unless specifically stated, most policies do not cover rental vehicles. The same applies when it comes to the scenario where another person was responsible for the accident. You can expect but cannot guarantee to pay your fare to the other driver's insurance company.

Q. Why a lawsuit loan?

A. Lawsuit loans can provide much-needed breathing space if you're unable to cover living expenses, mortgage payments, car loan payments, and medical bills during your lawsuit.