After a car accident caused by the other driver’s fault, you have the right to file an insurance claim and get compensation for damages. In theory, this is a simple process. In practice, insurance companies are doing everything to avoid paying claims. This is why you need an experienced Atlanta car accident lawyer to help you win your claim.
But how much would you have to pay in legal fees? This is one of the main issues that make accident victims think twice before hiring an attorney. Here is what you need to know on this topic.
Most Car Accident Lawyers Work on a Contingency Fee Basis
Personal injury lawyers generally have a contingent fee clause in their contracts with clients. This means they will get a fixed percentage of the money they win for the client.
The contingency fee has many advantages for both parties:
- The lawyer gets paid only if they win the case, so they are careful about analyzing the chances of success before taking a case.
- The client is not burdened with advance fees on top of other costs they face after the accident.
- The lawyer is motivated to obtain the maximum compensation amount for each client.
What Is the Average Contingency Fee Rate?
Lawyers usually charge between 33% and 45% of the settlement amount as a contingency fee. The difference in percentages depends on factors such as:
- The lawyer’s experience
- The complexities of the case
- The need to involve paralegals and other staff at the law firm to handle clerical aspects of the case
Other Costs Associated with Filing a Car Accident Claim
The total costs of your claim do not include only the contingency fee charged by the Atlanta car accident lawyer. During the course of the case, the attorney may incur various expenses, such as:
- Fees for obtaining records, such as a record of the other driver’s traffic violations
- Filing fees
- Travel expenses
- The cost to hire accident reconstruction experts and other expert witnesses.
However, in most of the cases, the attorney will not ask you to pay these costs upfront, but deduct them out of the settlement amount, together with their fees. This is a discussion that takes place on a case-by-case basis.
Will You Get Enough Money to Cover Damages If You Hire a Lawyer?
Most people become extremely wary about getting legal representation when they hear about the percentage of the contingency fee. But let us make a simple simulation, to realize how much money you would actually get out of your settlement.
Let us say that your economic damages are $20,000. The lawyer estimates that your non-economic damages are valued at $30,000. The total is $50,000. After negotiations with the insurer, they get a settlement of $45,000 (you will never get the full amount in the demand letter).
The lawyer works on a contingency fee basis of 40%, thus they will retain $18,000. Thus, you will actually collect $27,000. This covers all your economic damages and also leaves you with a significant amount of extra money representing the pain and suffering damages.
People Without Lawyers Get Significantly Less Money from Claims
So, why would you not represent yourself and walk away with the full amount of $45,000 as presented in the scenario above? The simple answer is that you will never get that amount if you do not have a lawyer negotiating on your behalf.
A study conducted by the Insurance Research Council specifically on car accident claims found out that plaintiffs without a lawyer get about 3.5 times less money in settlement than people with legal representation.
Thus, in the ideal scenario in which the insurance company does not deny your claim, you would get a settlement of around $15,000 – not even enough to cover your economic damages.
Let an Experienced Atlanta Car Accident Lawyer Win Your Claim!
If you want to get fair compensation for your damages, contact The Weinstein Firm as soon as possible after the accident. An experienced Atlanta car accident lawyer will obtain the maximum compensation you are entitled to get.
Even after the contingency fee, the amount you will collect will exceed any settlement you may be able to obtain on your own. We offer each new client a free case review, so call us today to schedule yours at 770-HELP-NOW!
