Accidents are expensive. Even a minor collision in a parking lot can leave you with absurdly high repair bills.
Chances are, you’re not financially prepared to handle the expenses that typically result from an accident.
While you want to receive compensation from the at-fault party, this isn’t always easy.
Even if the insurance adjuster isn’t outright denying your claim, it can still be tough to receive its full value. You need an attorney, but this is another expense.
Understanding the costs of hiring a car accident lawyer can be crucial.
When you understand the costs, it’s easier to determine if you can afford an attorney.
The Cost of Hiring a Personal Injury Attorney
Some vehicle accidents are fairly cut and dry. There isn’t a question of fault and the responsible driver is readily accepting the blame. No one is injured and vehicle damage is limited to a dented bumper. In this scenario, you can probably file a claim and receive compensation to cover your losses without a lot of hassle—this also means you can probably handle the claim process without an attorney.
Other vehicle accidents are more complex. There may be a disagreement over fault or your losses are extensive. When property damage is severe and you’re dealing with injuries, it’s usually best to retain legal representation. The ins and outs of personal injury law can be confusing. Even insurance laws can vary by state and this can impact almost every aspect of a personal injury claim.
Okay, so you have a pretty good idea of why you may need to hire an attorney but how much is it going to cost?
Upfront Costs
Most people are aware you must pay an attorney something before they take your case, and this initial payment also ensures things like client-attorney privilege are in effect. Even though you’re not disclosing information on any past misdeeds, you still want the assurance you get with privilege.
In a nutshell, attorney-client privilege protects anything you say to your lawyer. In a personal injury claim, the at-fault party’s insurance company can’t use anything you tell your attorney against you to devalue your case.
Unfortunately, your finances simply can’t handle covering upfront attorney fees. Don’t worry, you may still be able to retain legal representation. Personal injury attorneys often work on a contingency fee basis.
What are Contingency Fees?
If you’re not familiar with contingency fees, the premise is pretty simple. Contingency fees are a payment structure offered by most personal injury lawyers. A quick note, only personal injury attorneys can work on contingency fees. The reason is how the payment structure is set up.
With contingency fees, you pay nothing upfront. Instead, you enter into an agreement with the attorney. You’re agreeing to pay the attorney a predetermined percentage of your insurance settlement. How much of your settlement the attorney receives can vary, but most personal injury lawyers charge anywhere from 33% up to 50%.
So, when your personal injury claim is resolved the settlement check is sent to your attorney. Your lawyer deducts the agreed-upon contingency fee and you receive a check for the remaining amount. If you’re wondering if client-attorney privilege still applies, the answer is yes.
Once you sign the contingency fee contract, you’ve met all of the legal requirements. However, before signing the agreement it’s a good idea to ask the attorney about any additional costs.
Potential Additional Legal Costs
Most contingency fee agreements only cover the time your attorney works on your personal injury claim. For most claims, there are additional costs. You’re going to need copies of your accident report, which usually costs around $10. If you're claiming medical expenses, your attorney will need copies of your medical records. This is another fee that varies depending on the healthcare facility and the size of your medical file. So far, your additional expenses are still pretty manageable. However, more complex personal injury claims typically incur additional costs. Some examples can include:
- Filing fees, if your claim turns into a personal injury lawsuit. You’ll need to file your case in civil court.
- Expert witness fees, and this can include anything from medical professionals to accident scene reconstruction specialists.
- Court reporters
- Trial exhibits
There’s a good chance you’re also going to run into copying and postal fees. By themselves, these fees may not seem like much but the totals can quickly add up.
Common Questions About Contingency Fees and Attorney Costs
Now that you have a pretty good idea of what it can cost to hire a personal injury attorney, you probably have a few questions about contingency fees and other assorted costs.
Do You Need a Contingency Fee Agreement in Writing?
Anytime an attorney accepts a personal injury case on a contingency fee basis, you must have a written and signed contract—this isn’t an agreement you can seal with a promise or even a handshake. The law requires all contingency fee agreements be in writing; there aren’t any exceptions.
Along with listing the contingency fee percentage, the contract should also outline any costs not covered by the agreement. For example, your attorney may include the cost of your accident report in the agreement but not the fees associated with mailing documents to the other involved party. Knowing what’s not covered by contingency fees can help prevent surprise expenses after settling your claim.
Can You Get Out of a Contingency Fee Agreement?
Getting out of a contingency fee agreement isn’t easy. Remember, it’s a legally binding contract which means you can’t walk away if you change your mind.
If you change your mind, there’s a good chance you still need to honor the contingency fee agreement. However, you may be able to void a contingency fee agreement if you can show the attorney is ineffective or has a conflict of interest.
Hiring an Attorney Can Be an Affordable Option
The cost of hiring an attorney may not be as expensive as you think. Contingency fees can make legal representation more affordable, but remember to find out about any potential additional costs.
These extra costs can eat away at your settlement so it’s a good idea to know what else you may be responsible for covering.
ABOUT THE AUTHOR
Fred Felton
Content Creator / Editor
Fred Felton is a copywriter, editor and social media specialist based in Durban, South Africa. He has over 20 years of experience in creating high end content. He has worked with some of the biggest brands in the world. Currently Fred specialises in the motorbiking adventure space, focussing on all types of biking both on and offroad. He is also a keynote speaker and has presented talks and workshops in South Africa.
