Why do so many accident victims avoid seeking legal representation when having a lawyer on their side significantly increases their chances of obtaining more compensation and a favorable outcome? The answer is generally because of the cost. There is so much confusion over the percentage personal injury lawyers take from a settlement. Too often, vulnerable accident victims don’t understand the fee structures of personal injury lawyers. Instead of paying a lawyer, they settle for pennies from an insurance company for their injuries.
When you understand legal fees for accident claims, how to spot hidden costs in personal injury claims, legal jargon like “contingency fee basis,” and factors affecting lawyer fees, you can feel more confident about pursuing legal representation for your personal injury case and ensuring you are getting the representation you deserve.
How Do Personal Injury Lawyers Charge for Their Services?
How personal injury lawyers charge clients varies by firm. Every law firm establishes its own rules and fee structures for billing clients for its services.
Contingency Fees
Most personal injury attorneys choose to bill clients on a contingency fee basis. This is a “no-win, no-fee” model. A contingency fee basis means that a lawyer takes a case and handles all the work with generally no upfront payment from the client.
Instead, the lawyer gets paid a percentage of the compensation they recover on behalf of the client. That percentage comes from either a settlement negotiation or money awarded by the court following a successful personal injury trial.
Percentage rates vary depending on the lawyer and the firm. The standard contingency fee percentage ranges from 30 to 40 percent of an individual’s compensation. Thirty-three percent is typical for many personal injury lawyers.
A contingency fee structure allows provide who may not have the cash up front to have access to an attorney. Accident victims often don’t have the money on hand to pay for effective legal representation because of the significant financial aftermath of an accident. That aftermath can leave them struggling to cope with medical bills and daily expenses. At the same time, they miss work due to their injuries.
While a contingency fee agreement is standard in personal injury cases, some firms use other attorney fee structures to bill clients. Some lawyers charge hourly rates, which apply more to complicated legal cases or ongoing legal issues that a client needs an attorney to address continually.
Retainer Fees
Retainer fees are another legal fee structure that some firms use to charge clients for legal services. Under this structure, a lawyer requests a lump-sum payment upfront to start work on a case. As the lawyer resolves the individual’s legal situation, they draw from this lump sum to pay for their services and time spent on the matter.
Flat Fees
Some lawyers charge a flat fee for specific types of cases. This is not common in the personal injury arena. Examples of flat fee cases might be the creation of a simple will or handling a traffic citation in court.
Hybrid Fees
To complicate matters, some lawyers use a hybrid fee arrangement, combining fee structures like contingency fees with retainer fees, requiring an upfront payment and a percentage of a settlement.
Factors That Affect Personal Injury Lawyer Fees
Understanding an attorney’s specific fee structure is only part of the equation. Clients must also ask questions and ensure they understand the unique factors that may affect their personal injury lawyer fees.
Complexity
The case’s complexity is one of the most crucial factors impacting personal injury lawyer fees. The more challenging the case, the higher the hourly rate or contingency percentage. This increase is because an attorney must dedicate more time and resources to crafting a solid case with the best chance of obtaining a favorable outcome for their client. Complex cases tend to involve more legal leg work, extensive research and investigation, and potentially require expert witness testimony.
Experience
Another factor affecting a lawyer’s fees is their experience level. Attorneys with extensive negotiation and litigation experience can charge more for their services. Your money isn’t just purchasing legal representation. It is purchasing the knowledge and skills that an attorney has built up over years of education and practice to help you resolve your legal matter.
Location
The phrase is as accurate in the legal field as it is in the real estate field—location, location, location. Geography matters and can impact what an attorney charges in legal fees. Highly popular cities and urban areas generally have higher costs than rural locations.
Ask About Fees
While these factors can influence personal injury lawyer fees, as a client, you should never be blindsided or caught off guard by legal fees. Personal injury attorneys should be transparent about what they charge and what you can expect regarding upfront costs, contingency percentages, and the potential for additional legal fees associated with your case. Some contingency fees do not include legal fees, expert witness fees, or other court costs. As a client, you should always know what to expect and be aware of potential “hidden costs” in personal injury claims.
During an initial consultation, do not be afraid to ask questions about an attorney’s fee structure and the expected costs of handling your case. You should be able to discuss fees, legal costs, and case expenses honestly. Ask what expenses you might be expected to pay for at the conclusion of your case, such as court filing costs, transcript costs, court reporter fees if there are depositions, photocopy charges, and so on. Always take the time to carefully review the written agreement between you and your personal injury attorney to ensure you understand what the attorney expects of you from a financial standpoint.
A Huntington Beach Personal Injury Lawyer Can Answer Your Questions
At DJA Injury Attorneys, we aren’t afraid to discuss our legal fees for accident claims with our clients. We never charge up-front costs to get started on your case. You only pay us when we recover compensation for you. We know the challenging financial position victims find themselves in following a devastating accident. That should never prevent you from obtaining high-quality and effective personal injury representation.
Call our Huntington Beach office today at (949) 229-7228 or contact us online and get started with a free initial consultation with a personal injury lawyer.