If another driver causes you or a loved one injuries, you have the right to recover compensation for medical bills, pain and suffering, and property damage. Car accident victims and their families can secure compensation by hiring a car accident lawyer and filing a personal injury claim.
However, some families hesitate to hire a car accident attorney because they aren’t sure they can afford legal services. If you’re concerned about the expenses, we have created a guide on auto accident attorney fees—because we believe everyone has the right to skilled legal representation.
Fee Structures of Car Accident Lawyers
Car accident lawyer fees are typically paid from your settlement or court award after the lawyer wins your case. However, there can be other arrangements, such as flat, hourly, and hybrid fees. Here is how each of these arrangements works.
Contingency Fees
Most car accident attorneys work on a contingency fee basis. This arrangement means you pay lawyer fees from a percentage of the compensation you are awarded. The at-fault party’s insurance company typically pays the compensation.
A contingency fee arrangement usually includes a free initial consultation, during which the attorney evaluates your case and explains what to expect. Rosenfeld Injury Lawyers also operates on a contingency fee basis.
Hourly Rates
In some cases, car accident lawyers charge hourly rates for less predictable tasks that require ongoing work. These include consultations, specific legal tasks such as reviewing documents or handling complex litigation.
Flat Fees
A car accident attorney may charge flat fees for simpler cases or limited legal services, such as preparing a document. Flat fees are common in cases where the service is predictable and clear, and they also help the client know exactly how much money they need to set aside.
Hybrid Fees
Personal injury lawyers sometimes combine different fee structures to accommodate the complexity of a case. For example, they might offer a lower contingency fee and an hourly rate for specific tasks, such as case preparation, document review, or negotiations. Or, they may charge a flat consultation fee and receive the rest contingently.
Contingency Fee Agreement in Detail
Contingency fee arrangements allow you to hire a skilled car accident lawyer even with limited funds, which is a major advantage. In this section, we will explore contingency fees in more detail.
Percentage-Based Fee
Under contingency fee agreements, the lawyer’s fee is a percentage of the compensation awarded to the client, typically ranging from 25% to 40%. Most personal injury attorneys charge around 33% of the total compensation. During your initial consultation, your personal injury lawyer will explain the structure of the contingency fee agreement.
No Win, No Fee
The contingency fee percentage is only paid if the lawyer wins your personal injury case. If they do not secure a settlement, you do not have to pay attorney fees, although you may need to cover some court costs that have nothing to do with your attorney.
In most cases, this agreement also includes a free consultation.
Factors Affecting the Percentage
Contingency fee percentages depend on several factors, with the main ones being:
- Case complexity – Complex cases require more research, evidence gathering, expert consultations, and time, which typically raises the percentage.
- Anticipated litigation – If you file a personal injury lawsuit and the case goes to trial, the expenses incurred during preparations and the trial may be higher.
- Potential recovery amount—Higher car accident settlements usually involve lower percentages, while lower settlement amounts may require a higher rate to make the case financially viable for the lawyer.
During your case evaluation, ask your personal injury lawyer to explain how these factors may affect the contingency fee percentage in your specific case.
Expenses and Costs
In car accident cases, contingency fees are typically calculated after deducting case-related expenses, such as court filing, investigation, and expert witness fees. So once people are awarded the compensation, personal injury lawyers first deduct the case expenses and their percentage from the remaining amount.
We recommend confirming the initial contingency fee agreement with the personal injury attorney before hiring them. Different arrangements can severely affect the final payout or your net settlement amount.
Hourly Rates and Flat Fees
Most personal injury attorneys work on a contingency fee basis in a typical car accident case, but hourly and flat fees are also possible. Here is how and when they may apply.
Hourly Rate Structure
Lawyers may charge by the hour for specific legal tasks, including consultations, legal research, or negotiations. They may also charge by the hour for complex cases unsuitable for contingency fees or where the outcome is not predictable. An hourly rate can make sense if you only need limited services from the attorney, such as reviewing a settlement.
Typical Hourly Rates
Before hiring a lawyer who wants to charge an hourly fee, ask them for a good-faith estimate of the hours they expect to work on the case. This answer may prevent you from ending up with a particularly high bill.
The typical hourly rate of a personal injury law professional ranges between $150 and $500, depending on their experience, position, location, and case complexity.
Flat Fee Arrangements
Rosenfeld Injury Lawyers offers a free consultation to help you establish whether you have a case and what you can expect. However, some car accident lawyers may charge a flat fee for initial consultations or services with a defined scope, such as document preparation.
Advantages and Disadvantages
The main advantage of working with a lawyer on a contingency fee basis is that you do not need money to file a claim. Legal fees are generally expensive, which may prevent many car accident victims from seeking compensation.
However, depending on the case, there are advantages and disadvantages to all three payment structures:
- Flat fee basis – This structure’s advantages include predictability, making it ideal for simpler cases or tasks such as document preparation. However, if any complications arise in your case, the lawyer will be paid the same for more work, which may result in less dedication.
- Contingency fee basis – With a contingency fee, you face no upfront costs and only pay if the lawyer wins your case. This setup makes legal services more accessible and may motivate the lawyer to work harder to maximize your compensation. However, in some cases, you may receive a smaller portion of your compensation.
- Hourly rate basis – The main advantage is that you only pay for the time your lawyer spends on your case. However, this may be more expensive if the case gets more complex. Hourly rates are also less accessible for people who cannot afford the upfront costs of hiring legal representation.
Additional Costs and Expenses
Attorney’s fees are not the only cost related to car accident claims. There are also costs, such as court fees, expert consultation costs, and deposition fees, which may significantly impact your compensation amount.
Court Filing Fees
Court fees are unavoidable expenses in legal proceedings. They include administrative costs such as filing fees for submitting legal documents like motions, appeals, and complaints. Talk to your lawyer about how they may affect your settlement amount.
Expert Witness Fees
An experienced car accident lawyer can access expert witnesses, such as medical professionals or accident reconstruction specialists, who can be essential in personal injury claims.
Car accidents can be complex, especially when you need to determine each party’s portion of blame, so a highly skilled specialist can help you present and discover evidence.
Many experts require an upfront retainer fee to secure their services, ranging from a few hundred to several thousand dollars or an hourly rate. Medical professionals might charge between $200 and $500 per hour, while accident reconstruction specialists can charge anywhere from $100 to $300 per hour.
Other Costs
Personal injury cases have other possible expenses, including:
- Deposition costs – Deposition fees involve court reporters who need to record depositions. Court reporter fees range from $100 to $300 per hour, plus additional charges for transcripts.
- Travel expenses—Travel costs include traveling for court appearances, depositions, or site visits. These may include transportation, lodging, and meals. You may also need to cover these costs for expert witnesses.
- Document reproduction fees – Charges for copying legal documents, which can include printing, binding, and shipping costs.
- Obtaining medical records and police reports – These costs aren’t as high as many other fees, but they still add up and affect the amount you receive.
How to Choose the Right Fee Structure
If you or a loved one has suffered a car accident, dealing with legal fees shouldn’t add to your stress. However, it’s important to consider these costs as you’ll need resources to support your recovery.
To ensure you don’t pay more than you need to, consider the following factors:
- Case complexity – Complex cases requiring extensive research, expert testimony, or prolonged litigation may be better suited for hourly rates or contingency fees. On the other hand, straightforward, specific tasks might work well with flat fees.
- Your financial resources – If you have limited resources, you can choose a contingency fee to avoid upfront costs and ensure you don’t end up with a legal bill that will set you back when you are already in a difficult situation.
- Risk tolerance – Car accident lawyer fees are generally worth the investment. When you hire a specialized lawyer, you have a higher chance of recovering compensation from the at-fault driver. A contingency fee lets you file a claim without the risk of a significant attorney fees bill.
Discuss Fees With Your Car Accident Lawyer
Before you hire a personal injury attorney, be as open as possible about the costs of legal services. Ask questions about all possible expenses and how the fee structure affects your payout.
After a car accident, you’re already burdened with medical bills and lost wages. Your legal representation should ease your financial stress, not add to it. Choose a lawyer whose fee structure benefits your situation rather than becoming another liability.
Secure Expert Legal Counsel for Your Car Accident Claim
Rosenfeld Injury Lawyers is dedicated to providing affordable legal representation. We believe all injury victims deserve a skilled attorney, so we work with a contingency fee arrangement.
Transparency and open communication are a priority for us, and we will work hard to explain all costs associated with our services. We have helped thousands of clients recover compensation for their injuries, and their reviews confirm our commitment to affordable, honest, and compassionate representation.
Contact us today for a free consultation and to learn about the costs of our services. Call us at (888) 424-5757 or fill out our contact form.