When considering hiring a personal injury attorney for a claim, one of the first things claimants think about is the costs involved. Many people have been known to file claims and seek compensation without the assistance of a lawyer for fear of not being able to afford the legal fees. Claimants who are not represented by attorneys have been surprised to find that the amount of money they finally received as compensation was much less than they’d imagined, let alone what their claims were worth.
Seeking legal counsel gives you the best chance of getting full compensation in any type of personal injury claim. Even claims that seem straight forward can quickly turn into complex cases. However, it is important to understand how lawyers are paid right from the start and therefore avoid disappointment.
Different ways of getting paid
Lawyers get paid in two different ways.
- Flat rate, hourly rate or retainer. This structure of payment is common for lawyers who do not handle personal injury claims. In rare cases, personal injury attorneys may use flat-fee billing for what they see as simple and straight forward cases. Retainers are often charged for work that will take place throughout the case.
- Contingency fee. This is the most common billing structure when dealing with personal injury cases. The lawyers’ fee will only be paid dependent on the final verdict or settlement in the case. This means that the lawyer will take a percentage of the compensation awarded to you if your case is successful.
With this type of billing, you won’t have to worry about paying legal fees up front. You can focus on recovery and ensuring that your claim is successful.
Arriving at a Final Figure
You may be wondering how lawyers decide how much to deduct from your compensation. There are two things to consider:
- Percentage for contingency fee. This is the percentage that you and your lawyer agree will be deducted as their service fee from the compensation awarded in the claim. This percentage can range anywhere from 30 to 40% of the total settlement. It is important to discuss this figure with your lawyer and negotiate a fee that is reasonable based on the complexity of your case. Ultimately, the fee will be stated clearly in the retainer agreement that you sign with your attorney.
- Legal costs and expenses. There are many costs and expenses that personal injury lawyers may incur when working on your case. These are usually also deducted from the final settlement. These include the costs of:
- Hiring expert witnesses
- Obtaining your medical records
- Obtaining accident or police reports
- Hiring investigators
- Depositions
- Obtaining and preparing exhibits for the trial
- Fees for filing your claim
- Postage
You should factor in all these costs and expenses when considering how much you will finally receive as a settlement for your injuries. If you or someone you love have been injured, contact an injury lawyer today.
