Have you recently been involved in a car accident that was not your fault? Dealing with insurance companies can be a stressful process, and it’s easy to feel overwhelmed trying to navigate the legal system on your own after such a traumatic event. That’s where hiring a car accident lawyer can help simplify things and maximize the compensation you deserve for your injuries, lost wages, vehicle damages, and more. However, many people are hesitant to seek out legal counsel due to concerns over lawyer fees.
How are Car Accident Lawyers Paid?
Most personal injury lawyers who handle car accident cases work on a contingency fee basis, which means they only get paid if your case results in a settlement or court-awarded payment. This structure eliminates any upfront legal fees or hourly bills for clients. Generally, contingency fees average around 33-40% of the total settlement amount negotiated by the attorney.
So, for example, if your lawyer is able to settle your bodily injury claim for $100,000 through negotiations with the at-fault driver’s insurance company, and your attorney fee percentage is 33%, they would receive $33,000 of that settlement as payment for their services while you keep the remaining $67,000.
There are sometimes sliding scale percentages, where the lawyer’s cut decreases if a larger settlement amount is reached. It’s essential to have a clear written fee agreement that outlines the terms before hiring a lawyer so you fully understand how much of your compensation will go to paying legal costs.
Other Potential Car Accident Legal Fees
While the contingency percentage is usually the only upfront fee charged in a personal injury case, there are some additional costs clients may potentially incur:
Court Filing Fees: If a settlement cannot be reached and your attorney has to file a lawsuit in civil court, there will be an initial filing fee ranging from $225-$400, depending on the jurisdiction. This fee is usually paid upfront by the client.
Medical Records/Expert Witness Fees: It’s common for lawyers to incur additional expenses throughout the legal process, such as paying doctor/hospital fees to access important medical records or hire expert witnesses to strengthen your case. These costs are deducted from the overall settlement amount before contingency fees are calculated.
Lien Resolution Fees: If your injuries require treatment covered by health or workers’ compensation insurance, those providers have legal liens on any personal injury settlement to recoup their payout costs. Attorney fees to properly address/resolve these liens come out of your portion of the settlement.
Additional Legal Expenses: Rarely, costs for things like deposition/court transcript fees may apply. Reputable lawyers are transparent about extra fees and get client approval before incurring any substantial out-of-pocket costs on a case.
Does the Contingency Fee Structure Lower Settlement Amounts?
Some assume that paying a percentage contingency removes lawyers’ incentives to maximize clients’ compensation. However, most reputable car accident attorneys are still motivated to thoroughly investigate claims and negotiate the strongest possible resolution, as a higher overall settlement also means a larger attorney fee.
Studies comparing contingency fee arrangements to hourly billing structures have found settlements are often similar or higher when lawyers’ compensation depends directly on case results. This is because contingent attorneys work harder to avoid risks of losing the case or getting a low award/payout that impacts their payment. Their goal remains to get clients the maximum amount legally justified under the circumstances.
Calculating the Potential Value of Hiring a Lawyer
Now that we’ve discussed typical car accident legal costs, let’s explore how to determine if retaining representation makes financial sense, given the specifics of your accident claim. First, estimate the approximate value of your injuries, vehicle damages, lost wages, and other documented costs based on similar past settlement amounts and laws in your state.
Next, consult with 2-3 highly-rated local personal injury attorneys for free case evaluations. They should be able to provide a realistic assessment of what a strong settlement negotiation or trial outcome could achieve in your situation. The difference between what insurance offers now versus the lawyer’s professional estimated claim value is the potential additional compensation amount.
For example, let’s say you were hit from behind by another driver and suffered $5,000 in vehicle repairs as well as two months of missed work. The at-fault insurer offers $15,000 to settle your bodily injury claim based on your documented medical records and lost wages. However, during consultations, attorneys estimate with aggressive representation, your full claim could be worth $25,000-$30,000, considering similarly situated case precedents.
If your lawyer charges the standard 33% contingency fee, their cut of a $25,000 settlement would be $8,333. But they earn nothing if your direct negotiations only achieve $15,000. In this scenario, hiring representation potentially puts an extra $5,000-$10,000 in your pocket after fees by maximizing the settlement value – making legal assistance financially worthwhile.
Of course, each claim is unique, and there’s no guarantee a lawyer can achieve a larger settlement. However, consulting with professionals helps objectively assess risks and benefits to ensure informed participation. Aim to find attorneys with a strong track record and referrals who you feel will fight hard for your rights.
Factors That Impact Car Accident Settlement Values
When evaluating your case’s potential worth, it’s important to understand the specific details insurance companies and courts consider important:
Injuries Sustained – More serious or long-term injuries like fractures, herniated discs, and persistent pain suggest higher settlement values than only minor complaints. Having a documented treatment history also strengthens your claim.
Long-Term Prognosis – Claims with injuries leaving permanent damage, disabilities, or lifelong impairment have greater worth. But conditions expected to fully resolve face lower compensation.
Lost Wages – Being unable to work due to accident-related injuries increases value, especially for higher-income individuals. Provable lost earning capacity claims may reach into six figures.
Healthcare Costs – High bills for surgeries, therapies, medicines, and projected future treatment naturally lead to higher projected payouts by insurers.
Evidence of Defendant’s Liability – Undisputed video proof the other driver ran a red light, texts while driving, or had drugs/alcohol in their system can significantly boost a claim’s value due to their clear negligence.
Jurisdiction – Settlement amounts vary depending on where an accident occurred since jury award precedents, noneconomic damage caps, and insurance regulations differ by location. Experienced local lawyers understand these nuances.
By thoroughly documenting all applicable factors through your attorney’s investigation and having patients through the legal process, you give yourself the strongest chance at a full and fair resolution of your accident injuries claim. An experienced professional on your side greatly improves results.
Should You Settle Early or Pursue the Claim Longer?
It’s understandable to want a quick insurance payout to help relieve financial burdens from medical bills and missed work. However, there are reasons why waiting longer may result in a substantially higher settlement amount in your favor:
- Continuing treatment allows all injury severity and prognosis to become clear over time rather than assuming premature minor issues. Additional diagnostics verify or uncover injuries that are not obvious initially.
- Suing the at-fault party’s auto insurer in civil court, or threatening to do so, often motivates them to increase settlement offers pre-trial as they wish to avoid higher legal costs and risk of jury outcomes.
- Waiting the full statute of limitations period maximizes potential damages as long-term pain, suffering and future healthcare costs become accountable. Some state laws permit up to 4 years to file a bodily injury lawsuit.
- Hiring well-rated legal counsel experienced in personal injury litigation gives you powerful negotiating leverage with carriers not accustomed to seeing aggressive representation standing up for injured victims.
Your lawyer can advise you on the pros and cons of early settlements versus pursuing stronger results through litigation based on the specific details of your accident and claim. Open communication helps make the choice to best align short- and long-term financial recovery with healing needs.
Selecting the Right Car Accident Attorney
With so many lawyers advertising personal injury services, choosing one to handle such an important legal matter requires careful consideration. Some qualities signaling an attorney who will fight passionately and effectively for maximum claim value include:
- Exclusively practices personal injury/car accident law with substantive experience handling similar cases. General “jack of all trades” lawyers risk lack expertise.
- Maintains active membership in esteemed trial lawyer organizations demonstrating ongoing commitment to skills training and advocacy for injured plaintiff’s rights.
- Cites past case examples and testimonials showing a history of securing large settlement/verdict amounts in comparable claims for previous clients.
- Carries a strong professional reputation amongst colleagues for tenacious representation and strong litigation and negotiation abilities.
- Offers a straightforward free consultation to candidly evaluate strengths/weaknesses and provide pros/cons of the claim without pressuring premature retention.
- Maintains strong financial stability through a well-established practice so they have resources to actively litigate claims rather than pushing early inadequate settlements.
Meeting in-person allows gut-feeling assessments of trust, attentiveness, and true commitment to your best interests. It’s also important the lawyer communicates regularly, returns calls promptly and provides prompt status updates on negotiations or litigation activity. Question their approach thoroughly to ensure a natural partnership is formed.
Ultimately, choose an attorney you feel confident will fight with perseverance on your behalf. A long-term relationship of this nature requires aligned expectations and mutual respect. Do thorough research to hire a strong representation dedicated to securing the maximum compensation deserved from the start of injury through final settlement or verdict resolution.