If you’ve been injured in an accident and are considering hiring a personal injury lawyer, one of the first questions you’ll have is how much it will cost. The answer will depend on a variety of factors. Personal injury lawyers structure their fees in different ways, and many even work on contingency. However, to know if it’s a wise investment, it’s essential to know how these fee structures work and what you’ll really pay.
1. The contingency fee model
Most personal injury attorneys will work on contingency, which means they only get paid if and when you win your case (or it settles). The contingency structure doesn’t require any upfront payment out of pocket. If a lawyer believes they can win your case, they’ll take on the financial risk to pursue your case.
Typically, attorneys charge between 30-40% of the final settlement or award. That might seem high, but the average compensation for a slip and fall case can reach tens of thousands of dollars, if not hundreds of thousands, depending on the damages. For example, pain and suffering and other noneconomic damages significantly increase compensation.
Since your attorney’s payment depends on your case outcome, they’ll be motivated to maximize your payout. This model makes it possible for anyone, regardless of income, to secure legal representation.
2. Court costs
In addition to attorney fees, you’ll find costs attached to every step required to move your case forward. The first fee you’ll encounter is the filing fee to file the lawsuit. This can range from under $100 to several hundred dollars.
During your case, you’ll need to call on expert witnesses, like medical experts and accident reconstructionists, to prove your case. Expert testimony can be expensive, but it’s essential.
3. Fees to get copies of documents
Obtaining copies of your medical records will likely require paying a small fee. Some counties provide police reports at no charge, but others require a copy charge, even if you receive the documents digitally.
Another fee you might encounter is the cost of obtaining a transcript, whether it’s from the court or another entity. Most attorneys working on contingency will front these costs and subtract them from your settlement.
4. Hourly rates and flat fees
While rare in personal injury, some lawyers still charge hourly rates and flat fees. With hourly billing, you’ll pay for every hour worked, which can cost between $150-$500 or more per hour depending on the attorney’s experience and location. For flat fees, it’s more straightforward but can still cost thousands of dollars up front.
This is why you’re better off choosing a lawyer who works on contingency. Personal injury lawyers know most accident victims can’t afford hourly rates, and that’s why contingency has become a standard in the industry.
5. How settlement size affects fees
The amount of financial compensation you recover will play a major role in how much you’ll owe your lawyer. A higher settlement amount means higher fees. For example, a fee of one-third on a $30,000 settlement is only $10,000, but that’s a significant cut. A one-third fee of a $300,000 payout is $100,000, but that still leaves $200,000.
Some attorneys will reduce their fees if a case settles fast, but if a case goes to trial, that percentage might increase. Still, research shows that even after fees, people who hire a lawyer get 3.5 times more compensation on average compared to those who handle claims on their own. It’s important to know what you’ll need to pay your lawyer, but focus on what you’ll take home because that’s all that matters.
6. Consultations are typically free
Most lawyers offer free consultations where they’ll meet you and discuss your case. During this meeting, they’ll evaluate the strength of your claim to see if they want to take your case. This is the perfect opportunity to ask about fees so you can understand exactly how costs work. If you aren’t comfortable with the fee structure, you can walk away without spending a penny.
Paying for a lawyer pays off
At first glance, it might seem like paying a third of your settlement to your attorney is steep, but without a lawyer, you don’t stand a chance at getting fairly compensated. Insurance adjusters are masters at minimizing payouts and a lawyer will level the playing field.
By hiring a lawyer, you’ll have an expert negotiator fighting to secure a higher settlement on your behalf. You don’t want to fight the system alone. Having a personal injury attorney on your side is the only way to secure the compensation you deserve.