There is no question that car accidents can be costly. You might need extensive medical treatment for your injuries and lose income from missing work. You want to seek compensation for your losses, but should you hire a car accident attorney? How much does it cost?
Your finances are already stretched enough after a car accident without worrying about paying for anything additional, like legal services. The last thing you can do is spend unlimited money on a car accident lawyer to begin the legal process.
The good news is that you do not need to spend anything at all to get a hard-hitting car accident lawyer working for you. Reputable personal injury law firms use fee arrangements that allow you to obtain legal representation, even when you are already under financial stress.
To understand why you do not have to pay anything upfront, read on to learn about the contingency fee structure that car accident attorneys use when representing you.
Car Accident Attorneys Represent You on a Contingency Basis
When you hire other types of lawyers, such as a family law or criminal defense attorney, they will likely ask you to pay them a certain amount of money upfront as a retainer fee. This fee is in advance against the time your attorney will spend on your case in the future. Most attorneys bill you on an hourly basis, based on the amount of work your case requires. For example, if your attorney takes the time to send you an email, they may bill you for two-tenths of an hour. This type of representation requires you to have substantial funds to afford a lawyer’s fees upfront and throughout the case.
When you have been injured in a car accident, you might have a limited amount of money and an uncertain chance of success in your case. Receiving compensation depends on proving the other driver was negligent, and no outcome is 100 percent certain, even in seemingly straightforward situations. If you paid a lawyer upfront and then lost your case, you can be in a much worse financial position than you were before.
Car accident attorneys avoid this situation by working for you on a contingency basis. They only charge legal fees if they are successful in obtaining compensation for your losses. There is no guarantee they will receive payment for taking your case, just like there is no certainty that you will be paid for your injuries.
Instead, your car accident attorney’s financial interests are joined with yours because their payment relies on your payment.
When Your Car Accident Attorney Gets Paid
When you have signed a contingency fee agreement, winning is defined as receiving a financial payment in connection with your case. It can be a settlement check after filing an insurance claim or money the jury awarded you after winning your lawsuit.
The agreement you signed specifies that your car accident attorney receives a certain percentage of your settlement agreement or jury award should you receive one. If you have settled your case, you can expect your car accident attorney to receive a lower percentage of your settlement. You may pay a slightly higher amount if your case goes to trial because it requires more work from your car accident attorney and a greater risk for them.
Your car accident lawyer will be paid off the top of your settlement before you receive any money. While attorneys can charge different percentages as their fees, the rules requires all contingency fees to be reasonable, given the circumstances.
When Your Car Accident Attorney Is Not Paid
If you do not receive any money for your claim or lawsuit, your car accident attorney is not paid any legal fees for their time and services. In that way, a car accident lawyer is taking on their own risk when they accept your case. The last thing your attorney wants is to spend a lot of time on your case and come up empty-handed. The time they devoted to your matter is time they might have spent on other cases that result in payment.
Therefore, you can expect a car accident lawyer to review your case closely before they decide to work with you. An attorney-client relationship is a mutual one. You are choosing a car accident attorney and they are deciding whether to accept your case. Once they have accepted your case, they will largely be obligated to take it as far as it needs to go to fight for your legal rights.
A lawyer is careful about the types of cases they accept, so there is no guarantee that a car accident attorney will want to work with you if they do not think you have a strong case. You may need to consult multiple attorneys to find both one you want to hire and who wants to work with you (based on their availability and their opinion about the strength of your case).
There Is No Financial Risk to You to Hire a Car Accident Lawyer
You do not want to end up in a deep financial hole if your car accident case is unsuccessful. You sign a representation agreement outlining exactly how and when a lawyer can charge you for your case. The agreement states that you owe your attorney nothing for their work if you do not win. If there are other fees that your car accident lawyer expects you to pay in connection with your case, it must be clearly stated upfront in the representation agreement. A car accident attorney cannot hit you with surprise fees because the representation agreement is a legally binding contract.
The real financial risks for you happen when you try to deal with the insurance company alone. Then, you are not only risking getting a much smaller check than you deserve, but you are even taking a chance that you will not get any financial compensation at all when you do not have enough proof of liability.
Seek your free consultation with a personal injury attorney now and learn more about their services and fees.