Injured in a crash

How Much Does a Car Accident Lawyer Cost?

You are lying on the couch with a heating pad, the car is in a tow yard, and a bill from the ER just landed in your inbox. Somebody says you should call a lawyer. Your first thought is that you cannot afford one. That is the most common reason injured people never make the call, and it is based on a misunderstanding of how these lawyers get paid. Here is how it actually works.

You do not pay up front

Car accident lawyers work on what is called a contingency fee. That means you pay nothing to hire them, nothing by the hour, and nothing while the case is going on. The lawyer's fee is a percentage of whatever money is recovered for you, and it is paid out of that recovery at the end.

If nothing is recovered, there is no fee. That is the whole point of the arrangement. The lawyer is betting their own time on your case, which is also why a lawyer will tell you honestly on the first call if they do not think there is a case worth taking.

What percentage the lawyer takes

The percentage is agreed in writing before the lawyer does anything. It is not decided later, and it is not a surprise.

The typical range is 33 to 40 percent of the recovery, and the number usually depends on how far the case has to go:

• A lower percentage, often one third, if the case settles with the insurer before a lawsuit is filed or answered.
• A higher percentage, often 40 percent, if a lawsuit is filed and the other side answers it, or if the case goes to trial.

Some states set limits on this. In Florida, the Florida Bar caps the usual fee at 33 1/3 percent of the recovery before the defendant answers a lawsuit and 40 percent after, with lower percentages applied to the portion of a recovery above one million dollars. Arizona has no statutory cap, and 33 to 40 percent is common there too, often rising if a lawsuit is filed or the case goes to trial. Either way, the percentage in your written agreement is the one that counts.

Costs are separate from the fee

This is the part people miss. The fee pays the lawyer. Costs pay for everything else the case needs:

• Copies of your medical records and the police report
• Court filing fees, if a lawsuit is filed
• Expert witnesses, such as a doctor who explains your injury or an engineer who reconstructs the crash
• Depositions, which are recorded interviews with a court reporter present
• Investigators, postage, and similar expenses

Most firms advance these costs, meaning they pay them as the case goes along, and then take them back out of the recovery at the end, in addition to the fee. On a simple case that settles early, costs are small. On a case that goes to trial, they can be significant.

The question to ask before you sign is: if the case loses, do I owe the costs? Some agreements say yes, some say no. Get the answer in writing.

Medical bills and liens come out too

If a hospital treated you, or your health insurer paid your bills, or a doctor treated you on the promise of being paid from the case, they usually have a right to be repaid from the recovery. This is called a lien or reimbursement, and it comes out before you see your share.

A good lawyer does not just accept those numbers. Negotiating liens down is a normal part of the job, and it can make a real difference in what you actually take home. Ask any lawyer you talk to how they handle liens.

What you actually walk away with

Here is the order in which money comes out of a recovery:

1. The lawyer's fee, at the agreed percentage.
2. Case costs the firm advanced.
3. Medical liens and health insurer reimbursement, as negotiated.
4. Everything left is yours.

That last number, your net, is the only one that matters. A lawyer's job is to make your net higher than what you would have gotten on your own, after their fee. Insurers know that unrepresented people tend to accept the first offer and do not know what their claim is worth, and they make offers accordingly. The fee is the price of not being that person. Whether it is worth it depends on your case, and the first call is where you find out.

The first consultation is free

Every personal injury lawyer we work with offers a free first consultation. You describe what happened, they ask questions, and they tell you whether they think you have a claim and roughly how they would handle it. You are not obligated to hire them. If two lawyers give you different answers, that is worth knowing too.

Read the fee agreement before you sign

You will get a written fee agreement. Read it, all of it, before signing. Look for:

• The exact percentage, and when it goes up
• Whether the percentage is taken before or after costs are subtracted
• Who pays costs if the case loses
• How liens will be handled
• What happens if you and the lawyer part ways before the case ends

If something is unclear, ask. A lawyer who will not explain their own fee agreement in plain language is telling you something.

Call Clyne is a lawyer referral service, not a law firm. Stephen Clyne is not an attorney. This article is general information, not legal advice, and laws change. Talk to a licensed attorney in your state about your situation.