“No Fees Unless We Win”: The True Cost of Hiring an Auto Accident Lawyer in New York

Contingency Fees for Car Accident Lawyers

In the past, you may have heard that lawyers charge clients at an hourly rate. Nowadays, car accident attorneys commonly use a contingency fee agreement for car accident claims in New York.

This standard payment arrangement means that personal injury lawyers as well as auto accident lawyers in New York law firms don’t collect the attorney’s charges until you obtain compensation. In other words, your auto accident attorney will not expect any fees unless the case is won.

What’s the Standard Rate Charged by Auto Accident Lawyers in NY?

In New York, the standard contingency fee rate for auto accident cases is between 33.3% and 40% of the recovered amount. In car accident cases where the case goes to trial, the time and resources required are greater. Therefore, the percentage of the contingency fee rate is decided in terms of the requirements of the case.

If you are worried about your finances, as most legal clients are, something you need to understand is that when a skilled auto accident lawyer negotiates with insurance agents, you can pursue a higher settlement than you’ll get on your own. Let’s break it down with an example.

Without legal representation, you may only be offered $10,000 by an insurance agent based on how the insurance company determines liability. However, with an experienced car accident lawyer advocating for you, this settlement could increase up to $60,000 (depending on the circumstances of your case). Even after a standard 33.3% contingency fee is deducted (around $20,000), you'd still take home $40,000. This is four times more than what you would have received without a lawyer.

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Important Questions to Ask Your Auto Accident Lawyer About Fees

Before signing any agreement, take a moment to clarify how your NYC car accident lawyer charges. Although contingency fee structures are relatively straightforward compared to hourly rate payment plans, it’s necessary to ask these questions beforehand:

01. Is your fee percentage negotiable?

Some firms stick to the standard 33.3%, whereas others would change this rate depending on the complexity of the case. It’s advisable to get the rate decided prior to pursuing compensation.

02. Is the fee calculated before or after expenses?

There’s a big difference between the contingency fee calculated from the total settlement or what’s left of the settlement after case-related expenses are subtracted. Ask your personal injury lawyer which method is followed at their law firm.

03. What expenses am I responsible for, and when?

Some auto accident lawyers expect you to deal with expenses from filing fees, expert witness costs, and medical records. If that’s not the case, your law firm will handle additional case-related expenses for you to repay later.

04. Will I owe anything if we lose the case?

Although most law firms work on a “no win, no fee” basis, exceptions could be present where you are required to cover expenses even if the case doesn’t succeed. Before signing the fine print, make sure you get this clarified.

After getting these answers, it’s also recommended to ask your auto accident lawyer how the final settlement is distributed. You can even ask for a sample closing statement to see how contingency fees, costs, and your portion of the settlement are distributed.

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Types of Damages You Can Recover After an Auto Accident

A skilled auto accident lawyer builds a strong case from the ground up. After investigating the accident, collecting police reports, and gathering medical records, your lawyer will also interview witnesses and consult with experts. If you don’t hire a lawyer and handle this part of your case on your own, the full extent of your damages will not be clear.

In order to fight for the full compensation you deserve, both economic damages and non-economic damages should be accurately established by an experienced NYC car accident attorney.

Economic damages are the measurable financial losses you have suffered. These include:

• Current and future medical expenses
• Lost wages from time off work
• Reduced earning capacity if you can’t return to your job

And non-economic damages cover intangible impacts such as:

• Pain and suffering
• Loss of enjoyment of life
• Long-term mental health challenges caused by the accident

These are real losses and can easily get undervalued in your accident claim without legal help. An experienced accident lawyer knows how to calculate and present these damages properly so your final settlement reflects the true impact of the crash on your life.

If you have been injured in a car accident, don’t leave money on the table. Schedule a free consultation to talk with a reliable New York auto accident lawyer at Eli Shmulik. Let’s figure out what your case is really worth.