Accident victims are often left in a state of shock when dealing with the aftermath of the situation. They may be facing car repair bills, medical bills, and other expenses resulting from the accident, which can put a serious financial strain on most people.
With all the expenses piling up, hiring a personal injury attorney may be the last thing on your mind. You might think that you could never afford to hire an attorney, but a contingency fee arrangement can make it possible.
The amount it costs you to hire a personal injury attorney can vary based on several factors. You should do thorough research when choosing an attorney for your situation and make sure the one you select is the right choice for your case. If you are considering hiring a personal injury lawyer, here is everything you need to know about how much it will cost.
Types of Legal Fee Agreements
There is no “one size fits all” approach to legal billing. Many attorneys tailor their fee agreement to the specific case at hand. They may consider factors such as the type of case, the amount of time expected to be spent on the case, and whether the case is likely to go to trial. Below are some of the most common types of fee structures attorneys use.
Flat Fee
A flat fee is one of the most straightforward billing arrangements used by attorneys. When using a flat fee, the lawyer charges a set price for the agreed-upon legal representation regardless of the amount of time spent on the matter. The attorney typically expects that no surprises will arise during the representation.
Flat fees are common in uncontested divorces and the drafting of wills or other legal documents. For example, a lawyer may charge a flat fee of $1,000 to handle an uncontested divorce for a client.
Hourly Billing
Hourly billing is used when an attorney charges a client for each increment of time spent working on the matter. Attorneys track all the time spent on the client’s case, often down to 5-minute increments. Most attorneys who use hourly billing require the payment of an upfront retainer.
As the attorney spends time working on the case and bills the client, the fee that is due will be pulled from the client’s retainer. Hourly billing is usually accompanied by a monthly invoice that details all the time spent on the case during the billing period. Hourly billing is common in contested divorces and criminal cases.
Contingency Fee Arrangement
Personal injury attorneys commonly use contingency fee agreements. These arrangements do not require the payment of any money upfront. Instead, the attorney’s fee is taken as a percentage of any compensation awarded to the client. Some common types of cases utilizing contingency fees include:
If the attorney does not win or settle the case, they do not receive a fee. For instance, an attorney may charge a contingency fee of 25%. If they settle the case for $10,000, they will take a fee of $2,500, while the client receives the remaining $7,500.
Arizona law requires that contingency fee agreements be in writing and signed by the client. You should always be sure you fully understand the details of the agreement prior to signing the contract.
Factors That Affect The Cost of a Personal Injury Lawyer
Now you know that most personal injury lawyers use contingency fee agreements for their services. However, there are still many factors that can affect the amount of the contingency fee. On average, most contingency fees range from 30% to 40% of the total amount recovered by the client. Some factors that affect this amount include the following:
- Location
- Attorney’s experience level
- Type of case or injury
- Complexity of the case
- Attorney’s success rate
- Timing of the recovery (i.e., did the case settle or go to trial?)
The attorney’s experience level and the complexity of the case may greatly affect the amount the attorney may charge. More experienced attorneys can charge higher fees. Similarly, more complex cases require more time from the attorney, so they warrant a higher fee.
One of the biggest factors that can affect the cost of a personal injury attorney is the timing of the recovery. Many contingency fee agreements contain a variable percentage based on when the recovery occurs. For instance, an attorney may charge only 30% of the recovery if the case settles outside of court, but that fee may increase to 40% if the recovery occurs after a trial.
In addition to the attorney’s fee, there may also be other expenses associated with your case. The client is typically responsible for paying these additional expenses (which can be taken out of a settlement or court award). Common examples include:
- Filing fees
- Court costs
- Expert witness expenses
- Administrative costs, such as copies of medical records
Many personal injury attorneys will pay for these items as the case progresses, but the client will usually be responsible for repaying the attorney once a recovery is obtained.
Is Hiring a Personal Injury Lawyer Worth It?
You might wonder whether hiring a personal injury attorney is worth the cost. Generally, the answer is yes. Recent studies have shown that personal injury victims who hire an attorney receive 3 to 4 times more compensation than those who do not have an attorney.
Additionally, insurance companies may see you as an easy target if you choose not to hire an attorney to protect your rights. They may attempt to downplay your injuries or blame you for the accident in an attempt to avoid paying your claim. An experienced attorney can help prevent this from happening and ensure you get all the compensation you are entitled to.
Choosing the Right Personal Injury Attorney For Your Case
Cost is not the only factor you should consider when choosing a personal injury attorney. Most personal injury attorneys offer free consultations, and you can use that time to ask the attorney questions to ensure they are a good fit. Some things you should consider include:
- Location
- Experience handling similar cases
- Attorney’s success rate
- Cost
You need to hire an attorney who has experience handling cases similar to yours. For example, if you were injured in a motorcycle accident, you need an attorney with experience handling motorcycle accident claims. Additionally, you should select an attorney who has a high success rate with similar cases.
If you have been injured in the Phoenix, AZ area, you need an experienced attorney who can help protect your rights and get you the compensation you deserve. Contact the law firm of Runion Personal Injury Lawyers at (602) 600-9000 for a free consultation today to let us evaluate your claim and show you how we can help.
