You got hurt in an accident. You know you need an experienced attorney to help you obtain compensation from the at-fault party and their insurance company, but you're probably wondering, "How much does it cost to hire a lawyer?"
Since you can barely keep up with the bills you already have, you can't imagine adding the cost of a lawyer to your budget. Here's some good news: you don't have to worry. Personal injury lawyers do things differently than other lawyers. Hiring a lawyer to handle your personal injury accident case will not cost you a dime unless and until you receive compensation for your injuries and losses. Let's explore why.
The Three Standard Lawyer Fee Structures
At all law firms, attorneys get paid for their work. However, what many people may not realize is that different lawyers charge for their services in different ways. The three most common attorney's fees and fee structures are hourly fees, flat fees, and contingency fees.
Hourly Fees
Hourly fees are the most well-known and commonly used attorney fee structure. In this payment arrangement, a lawyer charges clients for every minute the lawyer spends working on a client's case, no matter if they win or lose the case. The amount of hourly rate typically varies depending on the lawyer's skill level, education, years of experience, and geographic location, among other factors. In general, a more experienced attorney with a proven track record will charge a higher fee than one who is fresh out of law school. The average attorney fees of lawyers who charge by the hour are in the $150 to $450 per hour range, although lower and higher lawyer fees are both common. Lawyers who bill their clients by the hour send out biweekly or monthly bills that detail the time the lawyer has spent on a case down to the tenth of an hour.
Many attorneys who charge by the hour require clients to pay retainer fees upfront. A retainer fee is essentially a down payment or advance payment that ensures the availability of the attorney's time and services for a specified period or until a particular task is completed. A lawyer will work and take their attorney fees from the retainer until it is all used up. Then they will likely ask the client to replenish the retainer, or they may begin billing them for their hourly fees.
Retainer fees help attorneys manage their workload effectively, secure a commitment from the client, and ensure they are compensated for their time and services throughout the course of legal representation. Clients benefit by having a dedicated attorney available for their case and a clear understanding of the expected costs.
Like any business, lawyers expect timely payment of bills if clients want them to continue working. Hourly fee arrangements have obvious financial benefits for lawyers if they have a client who can pay their bills. However, tension and billing disputes can arise when clients question whether their lawyer has given them good value for their money. Lawyers who often charge by the hour include defense lawyers in personal injury cases and business and tax lawyers. In some cases, a criminal defense attorney may also use hourly billing.
Flat Fees
Some lawyers charge their clients a flat fee for a particular legal service. Personal injury lawyers only rarely charge flat fees, usually in low-dollar-value, cut-and-dried matters.
Clients tend to favor flat fees when lawyers offer them, because they make legal expenses predictable and prevent overbilling.
Lawyers, however, tend only to offer flat fees when they know exactly how much work a particular legal service or case will require. They do not want to run the risk of misjudging a case and charging far less than they would earn if they charged by the hour.
So, for example, lawyers usually do not offer flat fees for open-ended lawsuits, but they may offer them for drafting a will, closing a loan transaction, handling an uncontested divorce, overseeing a real estate sale and closing, forming a business entity, or defending a first-time DUI.
Contingency Fees
In some types of cases, lawyers agree to work for a client in exchange for a percentage of the amount of money they succeed in obtaining on the client's behalf, or that their efforts save for a client. Contingency fees are, by far, the most common fee structure for personal injury lawyers to use in representing injured clients.
Contingency fee arrangements differ from other fee structures in that clients do not have to pay the lawyer anything unless the lawyer delivers results for them, and even then, the lawyer's fee essentially comes off the top of what clients ultimately receive. Clients pay no money up-front, and no money as the case goes along. The lawyer, in essence, works on spec and only gets paid if the client gets paid. Were it not for contingent fees, many people injured because of someone else's wrongdoing would not have access to legal representation.
How Much Does a Personal Injury Lawyer Cost?
Personal injury victims rarely have the financial resources to pay a lawyer by the hour or a flat fee because their injuries put them under financial strain. By offering to work in exchange for a cut of the winnings, so to speak, personal injury lawyers make their services available to anyone who needs them.
Personal injury lawyers put terms of their contingency fee arrangements with their clients into an agreement—commonly called a fee agreement, fee letter, or legal services agreement—at the very beginning of the representation. The agreement explains in plain English how the lawyer gets paid and specifically identifies the percentage of any recovery the lawyer will receive as a fee. The agreement also explains how the lawyer and client will handle other costs associated with the case, such as travel expenses, court costs, filing fees, expert fees, and other out-of-pocket costs.
What Can a Personal Injury Attorney Do for Me?
A personal injury attorney can provide valuable assistance if you've been injured due to someone else's negligence or intentional actions. Here are some ways a personal injury attorney can help you:
- Legal Advice: A personal injury attorney can provide you with legal advice specific to your case, explaining your rights and the legal options available to you.
- Case Evaluation: They can assess the details of your situation to determine whether you have a valid personal injury claim. They will consider factors such as liability, damages, and the extent of your injuries.
- Investigation: Attorneys can conduct a thorough investigation into the circumstances surrounding your injury. This may involve collecting evidence, interviewing witnesses, and obtaining relevant documentation.
- Negotiation with Insurance Companies: Dealing with insurance companies can be challenging. Personal injury attorneys are skilled negotiators who can engage with insurance companies on your behalf to secure a fair settlement for your injuries and damages.
- Legal Documentation and Representation: Attorneys can prepare and file all necessary legal documents, ensuring that paperwork is completed accurately and on time. They can also represent you in court if your case goes to trial.
- Determining Damages: Personal injury attorneys can help you assess the full extent of your damages, including medical expenses, lost wages, pain and suffering, and other related costs. They work to ensure you receive compensation for all applicable losses.
- Navigating Legal Processes: Legal proceedings can be complex. An experienced personal injury attorney understands the legal process and can guide you through each step, from filing a claim to the resolution of your case.
- Obtain Expert Testimony: If necessary, personal injury attorneys can consult with experts such as medical professionals, accident reconstruction specialists, or economists to strengthen your case and provide expert testimony.
- Alternative Dispute Resolution: Attorneys can explore alternative dispute resolution methods, such as mediation or arbitration, to reach a settlement without going to court, saving time and reducing legal expenses.
- Trial Representation: If your case goes to trial, a personal injury attorney can provide effective representation in the courtroom. Their trial experience and knowledge of courtroom procedures can be crucial in presenting a compelling case before a judge and jury.
Overall, hiring a personal injury attorney can significantly improve your chances of receiving fair compensation and navigating the legal complexities associated with personal injury cases. Since most personal injury lawyers also offer free consultations, you have nothing to lose by contacting a personal injury attorney in your area to see how they can help you obtain fair compensation.
Worried About the Cost of a Personal Injury Lawyer? Don’t Be.
The widely held impression that lawyers cost a lot of money comes from some of the ways lawyers have traditionally charged for their services. Even today, some lawyers do indeed charge their clients a pretty penny for particularly complex cases.
However, if you need a personal injury lawyer to help you recover compensation after you suffer injuries because of someone else’s wrongful decisions or actions, then you needn’t worry about the potential expense.
Chances are a skilled, experienced personal injury lawyer will cost you nothing upfront, and you likely won't have to pay anything unless the personal injury lawyer succeeds in securing you a favorable financial outcome. In many cases, the lawyer will even agree to cover the out-of-pocket costs involved in pursuing your claim.
So, if you or a loved one suffered injuries or losses in any sort of accident caused by someone else’s unreasonably dangerous decisions or actions, then you can feel confident in your ability to afford to hire a lawyer to advocate for your interests and rights. To learn more, contact an experienced personal injury attorney today for a free consultation.
Also, review some of our other related blog posts about starting your claim process:
- Calculating Lost Wages in Personal Injury Claim
- How Much Is My Car Accident Claim Worth?
- Was I a Victim of Medical Malpractice?
