After a serious car accident you will face many worries, from potential health issues to financial difficulties, but you might also worry about hiring a lawyer, especially about the lawyer fees that are going to be involved. Although it’s true that good car accident attorneys might be costly, their experience and skills will usually increase the settlement amount enough for the investment to pay off. So, how much will a car accident lawyer cost you?
That’s a sort of a “how long is a piece of string” type of a question, that depends on too many variables for us to answer, like the lawyer’s reputation and the complexity of the case. What we can, and will, do in this article though is explore the connection between the lawyer fees and settlement or payout outcomes, and explain the most common payment structures, while giving you some additional information that should help in getting the most out of your legal team.
Understanding the Link Between Fees and Settlements
Initially, paying your lawyer a percentage of the settlement might seem too much, especially if that percentage is between 30 and 40 percent. For instance if you pay your lawyer 33 percent of the settlement, and are awarded $100,000, your lawyer will get $33,000, and you will only be left with $67,000 minus potential medical bills or court costs. There is one key thing that you need to remember; more often than not, your lawyer will be the reason why you are awarded such an amount, as a huge majority of accident victims who decide to go without legal representation end up with significantly lower settlement amounts.
With insurance companies being businesses focused on paying out the least amount possible, it’s very difficult fighting them alone, and knowing this they will often offer very low settlement amounts to victims without legal representation. With an experienced car accident lawyer on your side who can prepare a strong case, with expert testimonies, medical and other documentation to back it up, insurers will know they are to face a much more serious challenge, and will be more open to fair settlement amounts.
In other words, although it may seem like you’re saving money by going without legal representation, not hiring a lawyer will usually cost you more as your settlement amount will most likely be significantly lower.
Contingency Fee Structures vs. Hourly Billing
There are usually two billing models that dominate, when talking about lawyer fees and car accident cases. These two models are contingency fees and hourly billing, and each comes with certain advantages and disadvantages. Understanding these will help you choose wisely:
Contingency Fees are the most common payment structure for car accident lawyers. There are no upfront payments, and in fact, the lawyer only gets paid if you win or settle. Their payment will usually be a pre-agreed percentage of the settlement, normally between 30 and 40 percent, but this can vary depending on multiple factors. The biggest and most obvious benefit of contingency payments is accessibility, as victims can afford experienced and reputable lawyers without worrying about costs, while they can use their finances on medical bills, vehicle repairs, and other expenses. The downside of this model is that, in larger settlements, the attorney fees might seem high, but again, that settlement wouldn’t have been reached without the help of the attorney.
Hourly billing is much less common in car accident cases. It requires you to pay your attorney a fixed rate for every hour worked, regardless if you win or not. These rates can typically range from $150 to upwards of $500 depending on experience, reputation, and location. Even though this model might offer more transparency, as you will always know exactly how much you’re supposed to pay, it can still end up costly, especially in the most complex cases that can drag on for a while.
Most car accident victims opt for contingency payment as they offer the best balance between risk and reward. Besides that, contingency fees motivate lawyers to push for higher settlement amounts as their pay is directly related and dependent on your outcome.
Avoiding Hidden Costs in Legal Representation
Besides the pre-agreed percentage or hourly fees, car accident victims might often have other expenses related to their case. These can add up, so best be prepared and aware. It’s best to ask your attorney a full breakdown of possible additional costs ahead of time, so there are no surprises afterwards. The additional costs mentioned often include:
-Court filing fees
-Medical record retrieval
-Expert witness fees
-Travel expenses
-Administrative costs
Conclusion
Even though car attorney fees might seem costly, or even intimidating, you should see that as an investment, which will give you a much better chance of justice and appropriate settlement.
It’s important to choose the payment model that you feel works best for you, and discuss all the potential additional costs with your lawyer, so that there wouldn’t be any surprises.
If you were unfortunate enough to have been in a car accident, don’t hesitate, call an experienced car accident attorney and start building a winning case today!
