Been hurt in an accident and worried about how much a lawyer will cost?

You are not alone. That is the number one reason why injured individuals delay seeking medical attention. Medical bills pile up. Work is missed. Hiring an attorney just seems like more money to spend.

Here’s the good news…

Most personal injury lawyers take their cases on contingency. A contingency fee means that the lawyer doesn’t get paid unless the client does.

Here’s your complete guide to understanding how contingency fees work, how much they should cost, and what to look out for before you sign on the dotted line.

Let’s jump in!

What you’ll discover:

• What a Contingency Fee Actually Is
• Why This Fee Model Exists
• How the Percentages Break Down
• What’s Included (and What Isn’t)
• Why Injury Victims Benefit
• What to Check Before Signing

What Is a Contingency Fee?

Contingency fee refers to an arrangement where lawyer only gets paid if the client wins.

Nothing. No hourly rate. No retainer. No monthly invoices to accumulate over time. If your case doesn’t recover money, the contingency fee attorney won’t get paid for their time.

Rather, the attorney receives a predetermined percentage of the final settlement or verdict. This percentage is agreed upon in writing before any work is done, so you will not be surprised later.

This fee structure applies to nearly every personal injury lawsuit in the United States. If you have been injured in a car wreck, slip and fall, medical malpractice claim, etc. there’s a good chance the lawyer representing you will be working on contingency. Working with an experienced injury legal team means the firm assumes the financial risk instead of the injured person.

Simple, right?

Why the Contingency Fee Model Exists

Have you ever wondered why contingency fees are the norm when it comes to injury law? It all boils down to one….

Why Injury Lawyers Take Cases on Contingency Fees and How It Benefits You

Access to justice.

Prior to contingency plans becoming popular, retaining an attorney required large retainers or hourly fees. Only the very wealthy could afford to litigate.

That sucks. Especially considering the person who hurt you generally has an insurance company fighting tooth and nail to pay you as little as they can.

Contingency fees correct this. The injured person can obtain the highest quality representation without draining their savings. The lawyer assumes the risk and both parties only win if the case wins.

There’s another benefit too…

The contingency structure lines up everyone’s interests. The larger the settlement amount, the larger the fee. So the lawyer has a direct monetary incentive to advocate for maximum recovery, not simply settle early to close the file.

How the Percentages Actually Break Down

That’s where most people get tripped up. Contingency fees are not a flat fee. The % changes depending on where you are in the case.

Here’s the typical breakdown:

Pre-Lawsuit Settlements

If the case settles before a lawsuit is filed, the contingency fee is typically one-third, or about 33%, of the recovery. This is by far the most common scenario.

Only about 90 to 95 percent of personal injury lawsuits ever go to court, says the U.S. Department of Justice. So most fall into this lower fee range.

When a Lawsuit Is Filed

The percentage is higher if the insurance company is being difficult and you must litigate your case. Most attorneys take cases on contingency fees ranging from 33% to 40%, depending on the complexity of the case.

Why skip straight to litigation? Litigation involves a tremendous amount of additional work, including depositions, expert testimony, motion practice and preparing for trial.

What Affects the Percentage

Fee agreements can vary. Here are some factors that can affect the final fee:

• Case complexity – more moving parts means more time and resources
• Injury severity – catastrophic cases need experts and life-care planners
• Location – fee caps exist in some states, especially for medical malpractice
• Attorney experience – top firms with strong track records often charge more

Every reputable law firm will explain all of this before anyone signs.

What’s Included in the Fee (and What Isn’t)

Here’s where people get tripped up…

The contingency percentage is compensation for the lawyer’s time and legal work on your case. It doesn’t pay for every dollar you spend fighting your case. There is a significant difference between attorney fees and costs of your case.

Case costs typically include:

• Court filing fees
• Medical record retrieval
• Expert witness fees
• Deposition costs
• Investigation expenses

Many companies pay these expenses ahead of time, and subtract them from your final fee. Others charge clients as expenses are incurred. Whichever method your firm uses, it should be stated in writing in your fee agreement.

Disclaimer: Always ask if case costs are taken out before or after the attorney’s percentage. It makes a difference to what ends up in the client’s pocket.

Why Injury Victims Benefit From This Setup

Contingency fee agreements offer injured victims a number of advantages besides eliminating advance payments.

You won’t lose any money. If you lose the case, you don’t owe an attorney fee. There’s really nothing to lose by consulting with an attorney.

Larger payouts. Lawyers get you more money from insurance companies. Insurance claims that are made by plaintiffs with lawyers settled for over 4.4X more money on average. Huge difference.

Free case reviews. Many, if not most injury firms will offer you a free consultation. There is no fee for determining if you have a case.

Goals that work together. The lawyer only gets paid if they secure the maximum recovery, and that’s what you want as well.

What to Check Before Signing an Agreement

Read the small print BEFORE you sign on the dotted line. Here is what you should expect to see in a quality contingency fee agreement:

• The exact percentage for pre-suit vs. litigation
• How case costs are handled
• What happens if the case is dropped or lost
• How the final settlement gets distributed
• Whether medical liens are handled by the firm

When in doubt, ask questions. Your reliable contingency fee attorney will gladly explain every part of your agreement with no strings attached.

Neither should you. The first consultation is complimentary, and any good firm won’t try to convince you to sign immediately.

Bringing It All Together

Injured people can afford good legal representation without draining their bank accounts thanks to contingency fees.

Here’s a quick recap:

• Contingency fees mean no payment unless the case wins
• Typical percentages run 33% pre-lawsuit, up to 40% if litigation is needed
• Case costs are separate from attorney fees
• Having a lawyer often means a much bigger settlement

Most importantly, find an attorney who is upfront about their fees and cares about your case. Schedule free consultations, ask questions, and choose the firm that you like best.

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