It may be daunting to hire a car accident attorney for fear of costing more than they’re worth. However, certain fee agreements let you access legal help without any upfront fees at the start. How much a car accident lawyer costs depends on your case and the percentage they take out of your settlement.
The more severe your injuries and losses, the more it’s worth hiring a car accident attorney to handle your case.
Especially when faced with denials and possible court hearings, you may need legal assistance to hold the guilty accountable.
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How Do Auto Accident Attorney Fees Work?
Most auto accident attorney fees work under a contingency fee agreement, meaning an attorney only charges you when they win your case.
This means all throughout the auto accident settlement timeline from demand letter to approval, your auto attorney cannot charge you upfront fees for their services.
They also cannot charge you attorney fees if they lose your case and cannot earn you compensation.
A car accident lawyer only gets paid through a percentage of your total settlement amount after you win. This opens up legal services to those who may not be able to afford upfront attorney fees.
What Contingency Percentage Do Most Auto Attorneys Take?
The contingency percentage an attorney takes from your settlement varies from case-to-case. Oftentimes this amount sits between 30-40% of your total settlement amount.
For example, if you were awarded $100,000, an auto attorney would take between $30,000-$40,000 from your total. Attorney percentages are always pre-negotiated, and you can ask for a lower percentage if you have an open-and-shut case.
On the other hand, if your case doesn’t settle and moves to trial, an attorney can ask for a higher contingency percentage from your settlement.
The work required to represent you in trial and proceed to further court hearings allows attorneys to charge a higher contingency fee amount.
Ultimately, how much an auto attorney charges should be discussed between you and your attorney.
Costs and Expenses in an Auto Accident Claim
Attorney service fees may be taken out of your total settlement, but there are other fees associated with an auto accident lawsuit. These fees may range from around $75 to $100+ depending on the amount of hearings in your case.
These additional costs and expenses associated with litigation and filing your case include:
- Fees to take out a car accident police report
- Medical document expenses
- Costs to file your case to court
- Court witness and reporter fees
Oftentimes these additional expenses are taken out of your total settlement, but it depends on your attorney agreement. You may have to cover these miscellaneous expenses yourself if your agreement requires you to.
Other Types of Auto Accident Fee Agreements
Although uncommon, some auto accident attorneys work under different fee agreements besides contingency.
How much a car accident lawyer costs doesn’t change based on their fee agreement structure. It only changes when and how auto accident attorneys get paid, and how that relates to your total settlement amount.
Fixed or Standard Fees
A fixed fee involves a one-time charge for an attorney’s services. This payment model is usually reserved for particular single-services an auto attorney provides.
Hourly Fees
Sometimes attorneys prefer to charge their clients hourly for legal representation, requiring them to record how much time they spend on your case.
Hourly attorney fees may range between $200 to $500 per hour, so ask how long an attorney will take before accepting an hourly fee agreement.
Retainer Fees
You can make attorney services much more accessible by hiring a legal retainer for a set period of time.
To retain a car accident attorney, you would pay either a fixed or hourly fee upfront to be held by the firm. An attorney can provide ongoing services throughout a period of time, deducting expenses from those funds.
If funds run out before the attorney can close your case, you may have to pay additional fees for more services to be done.
Hybrid Fee Agreements
Auto attorney fee agreements are flexible, and some lawyers work under hybrid fee options to cover all of their clients’ bases.
For example, some attorneys work under retainer for a period of time and charge a contingency fee at the end of your lawsuit.
Although most car accident lawyers work under contingency fees, it’s important to review your attorney’s fee agreement to truly know how much your car accident lawyer costs.
How Auto Accident Attorneys Settle Your Claim
After settling your case, if under contingency, your settlement often goes directly to your auto accident attorney. This allows them to deduct contingency fees and other miscellaneous expenses related to your case.
Your attorney must notify you that they received your settlement and must provide an itemized list of their deductions.
Once the deductions have been made, your attorney will send you the remaining settlement.
Is it Worth Hiring a Car Accident Attorney?
Although an attorney’s services aren’t free, the contingency fee system lets you focus on your lawsuit without worrying about the upfront costs. The risk of losing money from hiring an attorney is minimized since you pay nothing if they lose your case.
There are several benefits to hiring an auto attorney compared to representing yourself:
- A legal expert can guide you through the complex process of filing an auto claim.
- An attorney can defend you from underhanded practices from the other drivers’ insurance company.
- You may have a higher chance of claim approval with an attorney compared to representing yourself
- Lawyers can urge negligent parties, such as the at-fault driver’s insurance company, to acknowledge your case.
If your accident involves devastating injuries or significant loss of property, the benefits of hiring an auto attorney may be too valuable to ignore.
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As attorney fees vary from case-to-case, know the true cost of hiring an attorney by talking to one yourself.
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Jan Reburiano is a content writer and SEO specialist for law firms focusing on personal injury, disability, employment law, among other practices. He has written and edited numerous articles and created commercial spots for broadcasters that you can find in his LinkedIn. Jan currently lives in Los Angeles, California while writing for clients from around the United States.