Something that is regularly promoted in the personal finance space when it comes to paying for the unexpected is having an emergency fund – and it’s a great idea. However, sometimes an emergency fund either isn’t enough, or you might find yourself in a position where you have had multiple things happen within a short time frame.


Over the last few weeks my family has had a few different car incidents. About a month ago my wife and son were involved in a traffic collision. The weren’t injured, but the old car did cop a bit of a beating and we ended up buying a new one.

My brother also had an incident where a woman reversed into his car and then took off without leaving a note (which is illegal where we live). Fortunately a friend of his ended up witnessing the entire incident and gave him the contact details of the person who hit his car.

In both of these cases the damage was minor and to get each one fixed would have only cost about $500, however, not all accidents are minor and sometimes your emergency fund might not cover you for all the expenses you have – particularly if you are going down a legal path. This is where things can get a bit expensive and you are very likely to need more money than you will have sitting in your bank account.

Hopefully you will never need to go down a legal path to get compensation, but if you do, it’s important to have a plan in place on how you would go about funding the costs involved. Some legal fees can add up to many thousands of dollars, money that often isn’t easy to find.

If you have the money then that’s great – good job on having such a healthy emergency fund, but more likely than not you will need the help of specialists who deal in this type of thing, companies like Cash In Your Case will pay you out pre-settlement amounts to help you cover your costs when you most need the money.

There are other options, but none of them are all that appealing. Things like getting loans or using credit, borrowing money from relatives, mortgaging your house. In my opinion having the money available is the best option, followed by companies offering pre-settlement cash. My only caveat is that you need to read the fine print and understand exactly what you are getting yourself in for, if you aren’t comfortable, you may be best off shopping around or looking into other options.