Understanding Car Accident Attorney Fees and How They Are Paid
If you were injured in an accident that was not your fault, you should not hesitate to discuss your claim for financial recompense with a personal injury attorney. Nearly all lawyers that specialize in personal injury law provide a free consultation with potential clients. Your free consultation will give you the opportunity to discuss the merits of your case, and can provide you necessary legal counsel on the best way to proceed. This page of Low Cost Legal focuses on vehicle accidents, and what you should expect to pay for an attorney.
Affordable Legal Advice
While many lawyers charge a straight hourly rate, flat fee or retainer for their services when handling legal situations, most personal injury attorneys work on a contingency fee basis. In fact, accident attorney fees paid on contingency means the lawyer will not charge any upfront fees for the services they provide you. The car accident attorney fees will be contingent upon you receiving a financial recovery. In the event that a settlement cannot be reached, or compensation awarded at trial, the attorney fees are waived.
Typically, accident attorney fees are based on the complexity of the personal injury case. Usually, a personal injury lawyer will charge a 33 percent contingency fee when representing clients in automobile accident cases. This means if the attorney recovers $100,000 for you, the law firm will receive one-third of the hundred thousand dollars equaling $33,333. This contingency fee pays for the successful performance of the attorney’s efforts and time.
In addition to paying the attorney fee, you are obligated to reimburse the law firm out of your compensation for all out-of-pocket expenses that were incurred during the case. This common practice works well because the attorney takes all the financial risks involved in presenting a case to the claims adjuster or in a court of law.
As the client, you receive great benefit by agreeing to the contingency fee. This is because it provides an incentive to the lawyer to move the case efficiently and quickly to a successful financial resolution.
Separate Expenses
The cost of your accident injury claim is not just limited to accident attorney fees. Other expenses can include:
- The cost of legal research
- All fax, copying and office expenses
- Generated copies of reports and records, including from the police and medical care
- All associated court costs including deposition and filing fees
- Any associated fee for expert witnesses and investigators
Paying Expenses and Accident Attorney Fees
Nearly every personal injury attorney will pay the upfront costs involved in separate expenses while the case progresses. Once a judgment or settlement has been reached you will pay your car accident attorney fees and separate expenses to your hired lawyer out of the proceeds.
The Contingency Fee Contract
If you and a potential car accident attorney can reach an agreement to handle your case, you will need to sign a contingency fee contract. You and the law firm/attorney must agree and sign the written contract. The contract will define who will be paid, how much, and when. This written agreement will need to include the stated percentage of the total amount of recovery that is to be paid to the attorney, along with who will be paying the ongoing expenses while the case is in progress.
Walking through the Numbers
Before you hire a personal injury attorney to handle your accident claim, the lawyer should explain as many details of the claim as possible. This could include:
- How much does the attorney think the case is worth, and what are the factors for calculating that amount?
- How much of the settlement or award is going toward accident attorney fees?
- How much of the settlement or award is going toward legal expenses?
- How much remaining financial compensation of the settlement or judgment will cover your medical bills, lost earnings, mental anxiety and property damage along with pain and suffering?
Importance of Hiring an Attorney
Even the most basic accident claim requires comprehension of personal injury law. In fact, handling the case on your own will require you to gather knowledge, use organization, understand how to file and remain patient through the process.
In all likelihood, handling the case on your own exposes you to being unfairly denied your claim with the insurance company, or reducing the amount of your financial compensation. Even if you suffered only minor accident-related injuries, you would likely receive a greater amount of financial compensation when an attorney handles your case.
Whether you decide to use a skilled personal injury attorney or a firm that specializes in vehicle accidents, make sure they have the experience in negotiating directly with insurance companies and with opposing counsel should the need arise to file a lawsuit in a court of law.