Driving down the road one day and ending up in a car accident is nobody’s idea of a good time.
Having to hire a lawyer should also not be something you think about when you first get your license.
Unfortunately, collisions happen. And when they do, you should know how legal representation after a collision works before hiring the first lawyer you see.
How Contingency Fee Lawyers Actually Work
First off, let’s start with what exactly a contingency fee lawyer is.
Put simply, it’s a lawyer who doesn’t charge you anything up front to take on your case.
Instead of an upfront retainer fee, a contingency lawyer agrees to only receive payment if the case is successful.
It’s a win-win situation.
Win #1: If the lawyer wins your case, they take their pre-agreed upon percentage of the winnings.
Win #2: If they lose? You don’t owe them anything.
So where does the lawyer make their money?
Typically, the contingency fee percentage ranges from 33% to 40% of the total amount recovered. Most times, the percentage is determined by how much work is required to get your case resolved.
For instance, if your case settles before a lawsuit is even filed, then it will usually be around the 33% mark.
But if your case goes to trial, the percentage goes up to 40%, since more work is involved.
Simple enough, right?
Whether it’s a car accident in Boca Raton or a highway pileup in another state, this type of legal setup allows car accident victims everywhere to easily afford a contingency fee lawyer.
Why Legal Representation Matters After a Collision
Okay, so you know you can afford a lawyer if you hire a contingency fee attorney. But do you really need legal representation after a collision?
Consider this…
Every year, car crashes cost Americans $340 billion. Drivers pay these costs through inflated insurance rates, as well as settlements with insurance companies.
Yet, most people don’t realize those insurance companies do not have your best interests at heart.
Insurance companies are in the business of saving money.
Not providing you with the best possible settlement.
Without legal representation, drivers are financially drowning by costly medical bills and repair costs they can’t recover from.
An estimated 39,345 people died as a result of motor vehicle traffic crashes in 2024. And that was just fatalities.
For every person that died in a vehicle collision last year, thousands more suffered non-fatal injuries that required medical attention.
That’s where a contingency fee lawyer comes in handy.
They will handle all the negotiations with insurance companies and adjusters. Their job is to obtain the maximum recovery you deserve.
Without legal help, many drivers simply settle for whatever “reasonable” amount the insurance company first offers.
What to Look for in a Car Accident Lawyer
So now you know you should hire some type of legal help. But how do you know which lawyer is right for you?
When meeting with potential attorneys, here are some key things to look for:
- Experience with car accident cases.
You want someone who focuses on personal injury and car accidents, not just a general practice lawyer.
- Understands the fee agreement.
A good contingency fee lawyer will lay out their fee percentage and costs up front. Nothing should be hidden in the fine print.
- Can prove they’re successful.
Check online reviews, testimonials, and past case results. Don’t be afraid to ask the lawyer to reference past clients (they should have no problem doing this).
- Listens to you.
The right lawyer will make you feel comfortable. Plus, they’ll explain everything in a language you can understand.
Don’t simply choose the first lawyer you come across.
Like with anything else, researching before deciding is your best bet.
Understanding the Fee Agreement
Alright, you’ve researched some lawyers and found one you like. What’s next?
You guessed it. The fee agreement.
Don’t skip over this step thinking it’s not important. You’d be wrong.
Every contingency fee lawyer should have you sign a written agreement before they begin working on your case.
This agreement should include:
- The percentage the attorney gets from the recovery.
- Whether the costs of the case are deducted before or after the attorney’s fee is calculated.
- Who pays for costs if you lose.
If the lawyer deducts costs from the recovery first, then your portion is what remains after costs and attorney’s fees are paid. This is commonly known as a “gross” contingency fee.
However, if the attorney calculates their fee after costs are deducted, then they get a larger percentage of the recovery.
Yes, it really does make that big of a difference.
Make sure you go over the fee agreement with your lawyer. A good attorney will explain how every dollar is distributed.
Steps to Take After a Collision
You can always prepare yourself for the unexpected by knowing what to do after a collision occurs.
While hiring a lawyer first is always recommended, if that’s not an option here are some tips to follow:
- Seek medical treatment immediately.
- Document everything (photos, videos, etc.).
- Obtain a police report.
- Avoid admitting fault at the scene.
- Call your lawyer before dealing with insurance companies.
Yep, number 5 is probably the most important step to take after a collision.
Insurance companies love calling victims right after a crash and asking them to settle.
And nine times out of ten, the driver agrees because they don’t know any better.
But by hiring a lawyer first, you have someone who will protect your interests every step of the way.
Pulling It All Together
Hopefully, by now you have a good grasp on what a contingency fee lawyer is.
Let’s review:
- Lawyers who don’t get paid until you do.
- The cost normally ranges from 33%-40% of your recovery.
- Help give you the best chance against big insurance companies.
- Make sure to review the fee agreement before hiring.
- Know what to do if you’re ever in a collision.
There you have it. Now that you know how legal fees work after a collision, hopefully you won’t be stressed the next time you need to hire a lawyer.
Time to get back on the road!
