If you’ve been injured because of someone else’s negligence, whether in a car crash, a slip-and-fall, or an accident on vacation, hiring a personal injury lawyer can help you get the compensation you need.
But one question probably comes to mind—how do personal injury lawyers get paid? The answer is simple.
Most lawyers work on what’s known as a contingency fee basis. You do not pay anything upfront, and they only get paid if they win your case or secure a settlement. It is a system that takes the financial pressure off you, especially when you are already dealing with medical bills, lost income, and other worries.
In this guide we will explain everything you need to know. You will learn how personal injury lawyers get paid, what their fees look like, and what happens if you do not win your case.
How Does the Contingency Fee Work?
Most personal injury lawyers work on a contingency fee basis. This arrangement is pretty straightforward. If they win your case or get you a settlement, they take a percentage of that money as their fee. If they don’t win, you don’t owe them anything.
In other words, it’s a “no win, no fee” system. This approach makes hiring a lawyer accessible, even if you don’t have the cash to pay upfront.
Take DiBella Law Office, for instance. As a top-rated Burlington Personal Injury Lawyer, they work on a contingency fee basis. You don’t pay them upfront. Instead, they only get paid if they win your case or secure a settlement for you.
Their team handles all the legal heavy lifting, such as negotiating with insurance companies, gathering evidence, and, if necessary, taking your case to court. They fight to ensure you get fair compensation for your injuries, medical expenses, and any other losses.
For many people, the contingency fee basis is a huge relief—especially when dealing with medical bills, lost income, and other financial stress.
How Much Do Lawyers Typically Charge?
You might be wondering what percentage of your compensation the lawyer takes as their fee.
The exact amount can vary, but it’s usually somewhere between 33% and 40% of your settlement or award.
Here’s a general breakdown:
- If your case settles quickly—before a lawsuit is even filed—the fee might be closer to 33%.
- If the case goes to court or trial, the fee might increase to 40%.
The percentage goes up if the case goes to trial because taking a case to court requires a lot more work for the lawyer. They spend extra time preparing, gathering evidence, hiring expert witnesses, and presenting your case in front of a judge or jury.
To put it simply, the more work a case requires, the higher the percentage a lawyer may charge.
What About Extra Costs?
Here’s where things get a little trickier. Even though you won’t pay upfront for your lawyer’s services, there are other costs involved in a personal injury case.
These costs, often called case expenses, cover things like:
- Filing fees for court paperwork.
- Charges for obtaining medical records or police reports.
- Costs of hiring expert witnesses (like doctors or accident specialists).
- Travel expenses, especially if the case involves investigations or out-of-town meetings.
So, who pays for these extra costs? That depends on your agreement with the lawyer. Most lawyers will cover these expenses upfront and then deduct them from your settlement after taking their contingency fee.
Let’s say you win a $100,000 settlement. Your lawyer charges 33% ($33,000) as their fee. If there are $5,000 in case expenses, that amount is also deducted from your settlement, leaving you with $62,000.
With that in mind, it’s a good idea to ask your lawyer how case expenses are handled. Every lawyer is different, and knowing the details up front can help you avoid surprises.
Why Contingency Fees Make Sense
You might be wondering why personal injury lawyers use this system in the first place. Wouldn’t it be simpler to charge an hourly rate? Sure—but contingency fees make hiring a lawyer affordable for anyone, regardless of their financial situation.
After an accident, you’re likely dealing with medical bills, car repairs, or lost income. The last thing you need is to worry about paying a lawyer upfront. With a contingency fee, you don’t pay anything unless you win your case.
This system works well for lawyers too. Since they get a percentage of what you recover, they have every reason to fight for the best result. If you win more, they earn more.
In simple terms, it’s a fair system that makes it easier for anyone to get legal help without the stress of upfront costs.
What Are Sliding Scales and Variations in Lawyer Fees?
While the standard contingency fee is between 33% and 40%, some lawyers use a sliding scale. This means the percentage they take depends on how far the case progresses.
Here’s an example:
- If the case settles quickly, the lawyer might take 30%.
- If it requires more work—like filing a lawsuit—they might bump it up to 35%.
- If the case goes all the way to trial, the fee might increase to 40%.
Sliding scales are designed to reflect the effort and resources a lawyer invests as the case becomes more complex.
To put it simply, the longer and harder the fight, the more the lawyer may charge.
What Happens If You Lose?
Here’s some good news. If you lose your case, you usually don’t have to pay your lawyer anything. That’s the benefit of the contingency fee system.
However, it’s still important to ask about case expenses. Some lawyers may expect you to cover those costs, even if you don’t win. Others might take care of those expenses themselves. Be sure to clarify this before signing any agreement.
That said, most reputable lawyers are upfront about how costs are handled, so don’t be afraid to ask.
What Should You Know Before Signing a Written Agreement?
Before hiring a personal injury lawyer, you’ll sign a fee agreement. This document explains:
- The percentage the lawyer will take as their fee.
- How case expenses are handled.
- Any other important terms or conditions.
State laws often require these agreements to be in writing to protect both you and the lawyer. It’s important to read the agreement carefully and ask questions if something doesn’t make sense.
Final Thoughts
Hiring a personal injury lawyer doesn’t have to be complicated or stressful. Most lawyers work on a contingency fee basis, which means you only pay if they win your case. It is a simple and fair system that makes legal help available to everyone, no matter their financial situation.
It is always a good idea to ask questions upfront. From understanding how fees work to clarifying case expenses, knowing the details ahead of time will help you avoid surprises.
To put it simply, you do not have to deal with the aftermath of an injury alone. A personal injury lawyer can take the stress off your plate, handle the legal side of things, and fight to get you the compensation you deserve.
If you have been injured, do not let worries about money stop you from getting help. Reach out to a lawyer you trust and let them handle the hard work for you.