Hiring an attorney costs money, and it’s understandable if you wonder about the legal fees a car accident attorney charges. After all, you suffered an injury in a car accident, and money may be tight. There’s good news! Most car accident attorneys don’t charge upfront fees for their services. Instead, they are paid by a contingency fee. Read below about what a lawyer costs for a car accident, and speak to an auto accident attorney in your community today for more information.
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What Is A Contingency Fee?
One of the unique aspects of personal injury law is that attorneys in this specialty don’t usually charge per hour. Nor do they ask for a retainer at the beginning of the case. Instead, a personal injury attorney charges a contingency fee. This means they collect a percentage of your settlement or lawsuit award when the case is resolved.
Contingency fees are a percentage of the compensation that you recover when your car accident claim is over. The contingency fee percentage varies by attorney and their experience level, but it is usually between 30 and 40 percent.
The contingency fee percentage can be higher or lower based on when the case is resolved. Cases concluded during settlement negotiations may have a lower fee, while a case that ends in a jury verdict may have a higher fee.
How A Contingency Fee May Change
The percentage that the car accident attorney earns is usually higher the longer the case goes. The lowest percentage is in effect if a car accident claim is settled before they file a lawsuit. A middle percentage is usually earned if the car accident case settles after a personal injury lawsuit is filed but before the trial begins. The highest amount is typically earned if the car accident claim goes to trial and there is a verdict and award.
For example, your attorney’s contingency fee agreement might say that their fee will be:
- Thirty-three percent if a car accident settlement is reached before the attorney files a lawsuit.
- Thirty-six percent if a settlement is reached after litigation is filed but before the matter goes to trial.
- Forty percent if the case goes to trial and a jury issues an award for damages.
Let’s say the case doesn’t settle but goes to trial, and you receive a jury award of $40,000. You will pay $16,000 in attorney fees and will receive $24,000.
Whatever contingency fee your attorney charges, it must be in writing. Before signing any legal agreement, you should fully understand what your attorney charges you.
What About Legal Expenses?
Every personal injury case involving a car accident has legal expenses, too. Your case’s legal expenses will rise if your auto accident attorney files a lawsuit. Common expenses in a car accident lawsuit may include:
- Court filing fees: Various legal documents filed with the court have filing fees.
- Serving the parties: The local sheriff charges a fee for legal documents.
- Court reporter fees: A court reporter charges a fee if they take legal depositions.
- Transcript fees: This fee is charged from depositions if the car accident case goes to trial.
- Expert witness fees: Many car accident lawsuits require expert witnesses to prove the case and damages. For example, your car accident attorney may hire an accident reconstruction expert to prove how the accident happened. A medical expert may be needed to testify about your degree of injury and prognosis.
- Other fees may be required for medical records, police reports, postage, trial exhibits, etc.
Many auto accident attorneys pay for all legal expenses associated with the case and recoup them at the end. Other attorneys may require you to pay the legal expenses along the way. You should understand what costs, if any, will be your responsibility during the case.
Are There Other Ways That Personal Injury Attorneys Are Paid?
A contingency fee is the most popular way that car accident lawyers are paid. However, it isn’t the sole model for paying a lawyer who helps with your case. There are other payment methods that some attorneys may use. Ensure that you understand how your attorney is compensated before you agree to have them represent you:
- Hourly: Paying a car accident attorney by the hour means they will track the time spent handling your case. You and your attorney should agree on their hourly rate before the case begins. The attorney should provide a good-faith estimate of how much time they will spend on the case. Paying by the hour might make sense in a minor car accident case. Also, paying hourly can be smart if you want a car accident attorney to review a negotiated settlement offer.
- Flat rate: A flat-rate arrangement means the attorney charges a flat amount to handle your car accident case. You may pay the flat fee upfront, but some attorneys allow clients to pay in installments.
- Retainer: Some auto accident attorneys will require that clients pay a retainer fee. This usually means you pay upfront for a certain number of hours. You’re billed if they spend more time on the case.
- Hybrid: A hybrid payment structure means the attorney charges by several methods. For instance, a car accident attorney may charge you a flat rate upfront, then charge 10 percent of whatever they obtain for you in the case.
Most auto accident attorneys charge a contingency agreement, but you can find other attorneys paid by other means. Talk to your prospective attorney about how they are paid and who pays for legal expenses.
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Is A Car Accident Lawyer Worth The Cost?
Generally, the more severe a car accident injury, the greater you need an attorney. If the accident was a minor fender bender with no injuries, you may not need an attorney’s help. It’s never a bad idea to call a car accident attorney after any accident caused by another person to get their opinion, though.
On the other hand, suppose you are rear-ended by a truck at 40 MPH. You broke several bones, have a serious concussion, and can’t work for over a month. You also needed to stay in the hospital for three days and have surgery on your arm. Now, you owe tens of thousands in medical bills, have lost income from your job, and have serious pain and suffering.
This is a much more serious case, and you should have a car accident attorney representing you. Surveys have shown that car accident victims who hire an attorney obtain more compensation than those who represent themselves. After the attorney removes their contingency fee and legal expenses, they still receive more compensation.
In a recent study, the Insurance Research Council found that settlements for clients who hired a lawyer were 3.5 times higher than those who represented themselves. Sometimes, the settlement may be ten times higher or more without an attorney. Imagine how much more money you might have with an attorney’s help. This extra money can make a huge difference in the quality of your recovery and future.
There are several reasons that auto accident attorneys maximize settlements:
- They collect and interpret evidence: Gathering all critical information to construct the most robust car accident case. Vital evidence may include eyewitness statements, photos and video footage, medical records, DMV records, accident reports, expert witness testimony, physical crash scene evidence, etc.
- They work with expert consultants: A car accident attorney usually collaborates with medical experts to assess the nature and severity of your auto accident injuries and future medical requirements.
- They are skilled negotiators: Auto accident attorneys are trained in insurance negotiations and the legal process to make counteroffers to low settlement offers. They also make effective arguments for fair compensation for your losses.
- They are ready to go to court: Auto insurance companies know that a car accident attorney can file a personal injury lawsuit against the client anytime. Avoiding expensive lawsuits often incentivizes the insurance company to treat the accident victim fairly.
- They may assist with your medical care: Many auto accident attorneys network with local medical providers. They may help you receive care you don’t need to pay significantly until the case is concluded. The attorney may establish a medical lien that is paid from your settlement. This is an important service that may ensure that you receive the care you need most.
Of course, most car accident attorneys are paid by a contingency fee. Thus, they are highly motivated to obtain the most money for your economic and non-economic damages.
Common Myths About Car Accident Lawyers
Now that you know more about attorney contingency fees, you also should learn about common myths associated with car accident lawyers and personal injury law:
- Your car accident attorney can tell you what you will receive: No legitimate auto accident lawyer will guarantee a particular outcome. However, a skilled attorney may estimate what a case like yours may be worth based on their experience. Please ask your potential auto accident lawyer in the free consultation what they think your case might be worth. Just understand that it can be worth more or less than their estimate.
- You have to go to court: No. Many injury victims dread the idea of going to court and being questioned by a hostile attorney. However, most car accident claims are settled before trial. Only a few auto accident cases go to court, usually because the settlement offer is too low.
- There is only one lawsuit per auto accident: This can be, but multiple parties can be at fault for your accident injuries. For example, a truck accident can be caused by driver error and their employer’s poor hiring practices. If the case isn’t settled, it’s possible that more than one lawsuit can be filed against the liable parties.
- You don’t need a car accident lawyer: You aren’t required to hire an attorney. However, anyone injured by another party should probably hire a car accident attorney. You will almost always receive more money in a car accident claim if you have a lawyer.
- Every car accident claim takes years to settle: You may need to wait to receive money in a car accident claim, but some settle within a few weeks. Most settle within six months to a year. Only a few cases take longer than that. Of course, the case will take longer to resolve if there is a trial. If another party caused the accident, there’s a good chance the case may settle sooner than you think.
- Getting compensation for injuries is greedy: On the contrary, a serious auto accident may cost you tens of thousands in medical bills and as much or more in lost income. Plus, you have pain, suffering, and inconvenience caused by someone’s negligence. All these things are worth money, and you should be compensated fairly.
- You should deal with the insurance company directly: This is often bad advice. The at-fault driver’s insurance company wants to pay as little as possible for your losses. Few injury victims understand what their claim is worth and how to negotiate for the most money. You are better served by retaining a seasoned auto accident attorney to negotiate for you.
If you are unsure if a car accident attorney can assist, there’s an easy way to find out: Call an attorney in your area today and ask them! Car accident attorneys review cases for free every day. They are selective in their cases because most are only paid if there is a settlement or favorable verdict. The attorney will review your case quickly and determine if it will likely lead to compensation.
Contact A Car Accident Lawyer Today!
Did another driver injure you in a car accident recently? Severe injuries, lost income, and other losses make recovering difficult, but you have legal options! A car accident attorney may help you receive compensation for your losses. Contact a personal injury lawyer in your area today and find out if you can receive money for medical bills, lost earnings, mental and physical suffering, etc.