Can you get an advance on your car accident settlement?

Section 581 of the Insurance Act and section 5.6(3) of the Fair Practices Regulation permit victims of car accidents to receive an advance of insurance funds before the settlement or trial of their claim.

To receive an advance payment, you must establish that:

  1. The driver who hit you is probably (51% or better) liable/responsible for the amount requested (or more);
  2. Without the advance payment, you are unable to pay for the necessities of life (such as utility bills or rent), and these financial consequences may prevent you from pursuing a claim for damages;
  3. Your inability to meet the necessities of life is more likely than not the result of the injuries you sustained in the accident; and
  4. The amount of the advance payment is less than the total amount you are likely to recover.

To diminish the risk of overpayment (you receiving an advance payment for more than the ultimate value of your claim), insurers may require security for repayment of any excess amounts, or a promise to repay any ultimate overpayment with interest.

If you believe you may be entitled to an advance on settlement funds, and would like further information on your rights, please contact us.

For more information, see Shannon v. 1610635 Alberta Inc., 2014 ABCA 393.


A personal injury lawyer can help guide you through your options and help you obtain the compensation you need to help you recover from any injuries. They can also make sure that your insurance company does not attempt to limit the compensation that you are owed. Schedule your Free Consultation by calling (403) 452-2011 or send a message to We will represent you on a contingency fee basis, so we do not get paid for our time and attention until we settle.

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Kantor LLP Personal Injury Lawyers Represent Clients in Calgary, Canmore, Banff, Brooks, Camrose, Didsbury, Olds, Red Deer, Lethbridge and Wetaskiwin.
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