If you have been involved in a car accident, and you are pretty sure that the person at fault was not you, you will quickly have to look for a car accident lawyer. The next thing coming into your mind would be the cost of hiring that lawyer.
Most car accident lawyers use a pretty unique way to charge for their services. That way is pretty different from the one used by other lawyers charging an hourly fee. A car accident lawyer will charge a contingency fee to take on an injury case. That means your lawyer will not get any money unless you recover money in your case. After you get the compensation money, your car accident lawyer or law firm will take a percentage of that money.
In this article, we will discuss the way contingency fee structure works. We will also discuss what to expect when you hire a car accident lawyer to handle your injury claim case.
The contingency percentage
The percentage of the compensation money a car injury lawyer gets as in the contingency fee ranges between 25 and 40 percent. 33 percent of the compensation money is a standard here. that means if you get $90,000 as compensation for your car injury, you will have to give $30,000 to your car accident lawyer.
The amount of the contingency fee also depends on whether you have filed a lawsuit against the defendant. If your case settles before going to court, the percentage of the contingency fee will be on the lower side.
However, the percentage of this fee may increase to 40 percent if the suit is filed after the defendant has served a formal answer against your complaint, or if the case has proceeded to the trial and the jury has reached a verdict.
That means if your car accident lawyer has sent a demand letter to the compensation company of the other driver, and you have reached a settlement for $90,000 before going to the court, your attorney will receive %30,000. However, if the case has ended in a jury verdict of $90,000 as compensation, and you are due to pay 40% of that money to your lawyer, the contingency fee will be $36,000.
Make sure to speak with your car accident lawyer about the fee and review your contract. Ask your car accident lawyer if you fail to understand any clause of the fee agreement in the contract.
Moreover, the contingency fee will be negotiable. If your case is clear, your damages are evident, and it is hard for the other person to put a solid defense, you can negotiate with your car accident lawyer to lower the contingency fee percentage.
Other fee agreements
Not all injury claim cases require a contingency fee arrangement. For instance, your car accident lawyer may ask you to submit an initial retainer before beginning with your case. You will then have to pay a contingency fee at the end of the case. The amount you paid already will be subtracted from the total contingency fee. For instance, if you have paid $2,000 as in initial retainer and recovered $90,000 as the injury compensation, you will have to pay $28,000 from the settlement.