If you’ve been in a car accident, getting a lawyer can drastically increase your settlement.
But you may be worried that you can’t afford their legal fees.
Well, here’s the good news:
Most car accident lawyers, including us at No Bull Law, work on a contingency fee basis. You only pay if we win your case, with our fee typically ranging from 33% to 40% of the settlement amount.
That means no upfront costs.
What’s more, you can start with a free consultation to discuss your case and explore your legal options without any obligation.
In this article, we’ll explain how contingency fees work, why they’re a beneficial payment system for you, and which additional costs you should consider when pursuing a car accident claim.
As mentioned earlier, personal injury attorneys typically work on a contingency basis.
A contingency fee is a financial arrangement where you pay fees only when your lawyer wins the case. Essentially, they take on your personal injury case without any upfront payment, and the attorney fee comes out of your settlement, not your pocket.
Contingency fees in Texas typically range from 33% to 40% of your settlement amount.
Now, if that sounds like a lot, keep in mind that car accident victims tend to get on average, a 3-3.5x higher settlement when they have a lawyer (after deducting their fees).
Curious about what that means in actual dollars?
Here are a few examples:
- Minor injuries (bruises, whiplash, etc.) often settle between $10,000 and $25,000, meaning a lawyer’s fee could be a maximum of $4,000 to $10,000.
- Serious injuries like fractures and burns could settle anywhere from $50,000 to $175,000, with legal fees that might range from $20,000 to $70,000.
- Catastrophic injuries (traumatic brain injuries, paralysis, etc.) can lead to settlements of $100,000 to over $1 million—which means legal fees could be anywhere from $40,000 to $400,000.
As you can see, working on a percentage-based fee benefits your lawyer, too, when your car accident settlement is higher. So, they’re as motivated as you are to maximize your compensation.
Note: If the auto accident was clearly your fault, lawyers might charge you by the hour. The hourly rate of a Texas car accident lawyer can range from $130 to $500, depending on their skills and experience.
Since lawyers are paid from the settlement funds, let’s see what happens if you don’t receive a payout.
How Much Do You Pay If You Lose Your Case?
If you don’t get any compensation or lose the lawsuit, you pay your personal injury attorney nothing.
However, in rare cases, you may have to reimburse the lawyer some additional expenses that are not included in the contingency fees such as medical report fees, court filing fees, etc. It all depends on the terms and conditions mentioned in the written agreement, which also outlines the contingency fee percentages at different stages of the case.
Hiring a personal injury lawyer isn’t exactly cheap, so it’s only natural to wonder what they do to justify their fees.
Are Car Accident Lawyers Worth the Cost?
Absolutely. Getting an experienced car accident lawyer is a smart move.
As mentioned, you typically secure 3 to 3.5 times more with legal representation than without, leaving you with significantly higher compensation even after they take their cut.
But that’s not even the only reason to hire a car accident lawyer:
- They handle tedious tasks like gathering medical reports, police reports, and other evidence while you recover.
- They bring in experts like accident reconstruction specialists and medical experts to strengthen your case and reduce liability.
- They assess the full extent of your non-economic and economic damages to ensure you're seeking adequate compensation.
- They negotiate liens by working with healthcare providers and insurance companies to reduce the amount owed, ensuring you get a larger portion of the settlement.
- They handle all communication with the insurance company, preventing you from making mistakes that could hurt your case.
- They put pressure on insurance companies to negotiate fairly and avoid delays or lowball offers.
- If a fair settlement is not reached, they can file a lawsuit against the other party and represent you in court.
Lawyers usually keep the contingency fee arrangement flexible, which means that fees can vary based on the specifics of the case.
What Are the Factors That Influence Lawyer Fees?
Here’s what makes lawyer fees differ from one case to another:
1. Stage of the Case
Contingency fees can rise as the personal injury case moves forward. Your contingency fee agreement may specify a 33% fee for an early settlement, 40% if the case proceeds to litigation, and 45% if it requires an appeal.
On the one hand, these increasing fees can motivate you to weigh settlement offers carefully before escalating the case. On the other, they account for the added risk, time, and effort a personal injury lawyer takes on as the case progresses through the legal system.
2. Type of Case
The type of case can impact your lawyer’s fees.
Some, like lawsuits against the federal government, are capped by statutes. For instance, under the Federal Tort Claims Act, attorney fees are limited to 25% when suing the federal government.
Additionally, lawyers may charge higher fees for high-risk claims requiring significant time and resources. These include personal injury cases involving medical malpractice or product liability.
3. Time Taken to Settle
The timing of a car accident settlement can impact the lawyer's takeaway. Sometimes, they may agree to reduce their fee if they don’t have to put in a lot of work.
For example, the car accident attorney files a lawsuit and the fees jump from 33% to 40%. Let’s say they received a settlement offer right before they began the litigation work. In this situation, the lawyer may consider reverting to the lower 33% fee.
4. Attorney’s Experience and Expertise
Attorneys with a history of successful personal injury cases often charge higher fees due to their knowledge, negotiation skills, and courtroom expertise. The increased cost can be justified by their ability to efficiently navigate complex litigation in high-stakes cases.
In addition to the legal fee, you may also encounter case-related expenses.
Are There Any Other Fees You Have to Pay in a Car Accident Case?
Your personal injury attorney often covers the additional expenses needed to build and present your case. These might include:
- Expert witness fees: Fees paid to accident reconstruction specialists, medical experts, or other professionals for testifying or advising.
- Medical records and report expenses: Fees paid to medical institutions for obtaining documents.
- Police report expenses: Fees charged by the Texas Department of Transportation to acquire car crash reports.
- Court filing fee: Costs for filing documents and motions in court.
- Administrative expenses: Expenses for document copies, postage, and other admin tasks.
- Litigation expenses: Additional costs incurred during legal proceedings, such as deposition fees, trial exhibit preparation, or travel expenses for court appearances.
As your law firm fronts these costs, they are later deducted from your compensation. After that, your lawyer takes their fee, and the rest of the settlement goes to you.
Now, let’s see why a car accident victim would prefer the contingency fee arrangement over hourly fees.
Here are a few reasons why a lawyer working on a contingency fee basis is a plus for you:
- Convenient: After an auto accident, the stress of medical bills and lost wages can feel overwhelming. Having legal representation without upfront payments makes it easier to get the support you need without adding to your financial burden.
- Good Incentive: The attorney’s payment solely depends on winning your case, giving them every reason to stay focused, driven, and committed to securing the best possible outcome for you.
- Low Risk: If your personal injury claim is unsuccessful, you won’t owe your car accident attorney for their time. In most contingency fee agreements, the attorney covers case expenses upfront, which are later deducted from your settlement.
Ultimately, a good lawyer isn’t just another expense — they’re an essential resource for maximizing the settlement amount.
Get the Compensation You’re Entitled To With No Bull Law
At No Bull Law, we understand the financial strain our clients go through. That’s why our law firm fights relentlessly to secure every last cent you deserve after a motor vehicle accident.
Here’s how we work:
- Schedule a free, no-risk consultation and get honest legal advice.
- Our dedicated team investigates your personal injury claim.
- If we take your case, we’ll fight to secure justice and compensation.
- Once we win, we deduct our legal fee from the settlement and hand you the check.
If we lose, you pay nothing.
Sounds good?
Take the first step toward recovering what you’re owed — contact No Bull Law for a free case consultation.
