The Best Payment Method For Car Accident Lawyers
Car accidents are a major cause of death for people in the United States. Every year, an estimate of about 3 million injuries, 2 million of which are permanent and crippling, occur due to collisions on the road.
Many victims of such unfortunate incidents never recover from their losses and neither get a consultation from a car accident lawyer, hesitating at the thought that the attorney might charge a high fee.
But here’s the good news: injury lawyers usually get paid only when they win!
Hence, you should always hire attorneys to aggressively and relentlessly fight for your compensation and rights.
There are various methods of payment to depart the due fee to your attorney which include contingency fee, flat fee, an hourly-rate fee, retainer fee and hybrid mode of payment.
The Best Mode of Payment: Contingency Fee
Most car accident attorneys charge for their services in a fairly unique way—as opposed to the hourly fee that many firms charge in other types of cases. To take on an injury case, a typical car accident lawyer will charge a “contingency fee.” A contingency fee means that the firm will not be compensated for its legal fees unless you recover your money. The attorney or legal firm will be paid a portion of any settlement or jury verdict (if the case goes all the way to trial).
The percentage that a personal injury lawyer can receive in a contingency fee agreement varies, but typically ranges from 25 to 40 percent, and 33 percent (or one-third) is standard. Therefore, if you have a 33% contingency fee agreement and win your car accident case for $90,000, your lawyer will get about $30,000.
Find out everything you need to know.
A contingency fee percentage may vary depending on whether a personal injury lawsuit has to be filed against the defendant. If the case settles before it goes to court, the percentage will be on the lower side.
However, if settlement occurs after filing the lawsuit and the defendant’s formal response to your complaint, or if the case proceeds to trial and a jury verdict is reached, the attorney’s share may increase to 40 percent.
Contingency fee is the best mode of payment because it ensures that the lawyer has your best interests in mind. A good compensation amount in the case ensures a satisfactory financial recovery for you, and a good chance of getting paid a portion of what they won, for your lawyer. The lawyer is literally “contingent” on a favorable outcome in the injury case.
The other modes of payment
Not all cases involve a pure contingency fee arrangement. There are some other methods that may be used as a mode of payment to your car accident lawyer.
Flat Fee
A flat-fee arrangement occurs when a car accident lawyer charges a set amount to represent you during the entirety of the case. Although you may need to make an initial payment, you can arrange to pay the fee over time.
In most of the cases involving car accidents, there is no flat fee for legal purposes. A flat fee arrangement is usually reserved for cases that are less complex. When legal representation is limited to drafting and responding to a demand letter, a law firm may charge a flat fee. The fee, in that case could range between $300 and $1,000.
Hourly-rate fee
If you pay a personal injury lawyer at an hourly rate, they will keep track of the time spent handling the case and charge you accordingly. You should reach to a suitable rate after discussing with the lawyer, and should request a good-faith estimate of how much time they will spend on the case.
Paying an hourly rate could be the best route if you just need a little bit of assistance, such as help in reviewing a settlement offer made by the liable driver’s insurer.
Retainer Fee
Some car accident attorneys will require you to pay a set amount up front called a retainer fee. Usually this means you pre-pay a certain sum of money for a fixed amount of hours and then are billed if more time is needed. This could be followed up by additional payments contingent on the outcome of your case.
Lawyers may charge an initial retainer to start your case and a contingency fee at the end of the case. However, if you recover money, the amount already paid to the lawyer should be subtracted from the percentage due at the end of the case. For example, if you paid $2,000 to the attorney as a retainer and recovered $90,000 in the settlement, the attorney will receive $28,000 from the settlement.
Hybrid
A hybrid arrangement involves a combination of payment methods. For example, an attorney may collect a flat fee upfront to begin your case and then take a percentage of the damages you receive contingent upon the successful outcome of your case.